Silicon Energy

Investment Status: realized

Sector: Energy Technology (Energy Management Software)

Investment Fund: Fund I

Geography: U.S.A.

Initial Investment: Aug. 1, 2000

Date of Disposition:March 1, 2003

There has been a proliferation of “energy information” providers in response to the deregulation of the power industry and the perceived need for more real time monitoring and control functionality in the industry. These providers include hardware and software companies offering solutions across different modes of communication. Silicon was a relatively early mover in the “gateway” software end with a “web interface,” focusing on the larger commercial and industrial client needs.

Based on an investment opportunity presented by a limited partner, Fund I invested in Silicon as part of what was expected to be a pre-IPO round for the company. The utility market was slow to adopt the Silicon product line. An IPO was never completed. Most of the capital raised was used to cover corporate overhead, resulting in additional capital requirements. Additional capital was raised in 2001. After reductions in overhead and the adoption of a more focused marketing plan, results eventually turned positive. Silicon was acquired by Itron in March 2003.