Reno-area startups raised $1.4B in capital, 15-fold increase | Technology

Two battery technology companies accounted for more than half of the investment funding raised.

One of them, Carson-City based Redwood Materials, was founded by former Tesla chief technical officer JB Straubel. He helped set up Tesla’s first Gigafactory after Nevada was picked by the company in 2014 and decided to remain in the area.

Redwood Materials doubled down on northern Nevada last year, breaking ground on a new battery facility at the Tahoe-Reno Industrial Center and raising $750 million in Series C funding. Series C is the next round of funding after the initial Series A and B rounds, and is typically given to startups with a more established track record.

In addition to proximity to key customers Panasonic and Tesla as well as the California electric vehicle market, Straubel said the area provides more space to grow and has a “very business-friendly climate politically and economically.”

Nanotech Energy, another company that deals with battery and clean technology, raised $64 million in Series D funding last year. Since its inception, it had raised $94.9 million in capital as of November.

When it announced plans late last year to build a new manufacturing facility at the Tahoe-Reno Industrial Center, Economic Development Authority of Western Nevada President and CEO Mike Kazmierski said it was the region's “most significant announcement since Tesla.”