Phononic Raises $50 Million Growth Financing from Goldman Sachs Asset Management to Scale Global Adoption of Sustainable Solid State Cooling Solutions
July 21, 2021
Financing Allows Phononic to Continue to Meet Explosive Market Opportunity for Sustainable Solutions in Cooling and Refrigeration
DURHAM, N.C. & NEW YORK–(BUSINESS WIRE) — To support the global demand for Sustainable innovations that address climate change, Phononic, a global leader in solid state cooling and heating technology, today announced that it has secured a significant growth investment led by $50 million from the Sustainable Investing business within Goldman Sachs Asset Management (Goldman Sachs). This investment allows Phononic to dramatically expand sales and marketing, domestic and international high-volume manufacturing capabilities, and expand its cooling and refrigeration product portfolio and platform.
Goldman Sachs joins previous investors Temasek, Franklin Templeton, Venrock, Oak Investment Partners, and others.
The world faces a climate warming catastrophe only exacerbated by a voracious appetite for cooling, refrigeration, and air conditioning. If left unchecked, by 2045 leaked refrigerants alone will contribute as much to CO2 emissions as automobiles. Furthermore, 3 billion people live in hot climates, yet only 8% have access to air conditioning. As standards of living continue to increase and meet that of the developed world, CO2 emissions will only worsen. Refrigerant regulations are often patchwork, eliminating some GWP refrigerants, but replacing them with toxic or flammable alternatives.
Solid state cooling and refrigeration solutions that meet performance, cost, and sustainability metrics are key drivers behind Phononic’s explosive growth in Optolelectronics (Fiber Optic Communications/ 5G/LIDAR); Cold Chain Fulfillment (ecommerce ecosystem); and Technology Licensing (vaccine protection, cold chain and retail merchandising, and climate control).
“With millions of high-performance thermoelectric devices already in use around the globe, and tens of thousands of solid state refrigerators and freezers in the field, Phononic’s technology and products are mission critical to the way we communicate; feed our families; safeguard and transport life-saving vaccines; and even shop for our favorite ice cream snacks,” said Tony Atti, Phononic Co-founder and CEO. “This support from Goldman Sachs is a validation of our team’s continued focus and dedication to making a transformative environmental impact.”
The investment from Goldman Sachs creates an exciting sustainability and growth opportunity for both parties. “We recognize the critical role cooling and refrigeration plays in the planet’s long term sustainability and climate viability, and we’re excited to invest in Phononic to further Goldman Sachs’ broader sustainability commitments,” said Jeff Possick, Managing Director at Goldman Sachs. “Phononic’s solid state solutions are delivering performance and sustainability not available through legacy thermoelectric or compressor incumbents, and our investment aims to help grow and expand their capabilities to meet anticipated demand.”
Phononic, Inc. is an innovator of semiconductor cooling solutions that sustainably transform refrigeration and cooling. The Company’s thermoelectric chips and fully integrated products are used in Optolelectronics (Fiber Optic Communications/5G/LIDAR); Cold Chain Fulfillment (ecommerce ecosystem); and Technology Licensing (licensed to leaders in the life sciences & healthcare, food & beverage and climate control sectors). Phononic’s innovations are revolutionizing the way people work and communicate, how grocers merchandize and deliver food, how life-saving vaccines and drugs are protected, and how houses and buildings are cooled – setting a new global standard of efficiency and sustainability.
For additional Company and product information visit: www.phononic.com.
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.
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