Venture Capital firm Stellar Tech ends 4 years of keeping a low profile

Stellar Technologies, http://www.stellartllc.com/ a venture capital firm, launched itself publicly this week after operating in stealth mode in the Treasure Valley over the last four years.

Julie Howard
The Idaho Statesman

Stellar Technologies, a division of Meridian-based holding company DBSI, has invested more than $50 million in startup technology ventures, most of which are based in Idaho.

Stellar makes the third venture capital firm in the Treasure Valley, after Highway 12 Ventures and Akers Capital.

The firm operates differently than its traditional venture capital counterparts in that it focuses solely on helping brand-new companies get launched, takes a larger ownership stake, and provides back-office services.

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Stellar Technologies

1550 South Tech Lane

Meridian, Idaho 83642

tel: +1 208.955.9800

fax: +1 208.955.9834

email: [email protected]

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Stellar has invested in EmergeCore, BioReaction Industries, Wavetronix and iTerra Communications, and is continually looking at other ventures, said Eric Mott, one of the firm´s directors.

“There are two to three projects we´re constantly taking a look at,” said Mott.

One of those new projects is a technology for wastewater treatment that is currently being tested with the city of Meridian. The technology, said Mott, has the potential to significantly shrink the size of treatment plants and produce cleaner water.

“The theory is that it could reduce the cost to the city as much as 50 to 60 percent,” said Mott.

By incubating companies as well as funding their startup, there is a greater chance of success, said Dave Brown, president and CEO of EmergeCore, one of Stellar´s companies.

“We don´t have to focus on human resources or legal or accounting — and those costs are huge for new startups,” said Brown. “This model allows companies to focus on their technology and R&D.”

Mott said Stellar is funded privately by DBSI partners and numerous investors nationwide. The decision to make its investments and operations better known in the area was spurred by the desire to expand and find new investments, said Mott.

“The Treasure Valley is where most of our deal flow is coming from,” he said. “And while Idaho is our focus, we´re open to expanding and growing to other areas.”

Frank Bernard, an analyst with OMNI Consulting Group in Davis, Calif., said the hybrid model — venture capital plus incubator model — is one that helps firms focus more on core products.

“It removes infrastructure inefficiencies and minimizes the cost of doing business,” said Bernard. “That way they can focus on driving revenue and maximizing productivity.”

Mark Solon, managing partner of Highway 12 Ventures, a traditional venture capital firm in Boise, welcomed another company helping startups get launched.

“It´s great that there is more private equity dollars being invested in startup companies in the Treasure Valley,” Solon said. “We look forward to working with these guys when the right opportunity presents itself.”

To offer story ideas or comments, contact Julie Howard
[email protected] or 373-6618

http://www.idahostatesman.com/story.asp?ID=48700