SynapSense's challenge
SynapSense Corporation is a Folsom, California-based company that has developed a technology to reduce energy use in data centers with the help of wireless sensors and software controls. Energy efficiency is a key concern for data centers, which account for nearly 3 percent of US power demand. SynapSense's technology has the potential to address this, and cut customers' power and cooling costs by up to 35%. SynapSense was looking to secure funding to expand its operations, as well as for a partner that could help it commercialize its innovative technology and grow its customer base.
Deepening our relationship with GE through this investment and commercial collaboration will play a major role in helping SynapSense deliver digital energy services that extend wireless control and resource management to the entire IT facility infrastructure.
GE Capital's strategy
GE Energy Financial Services, GE Capital's specialized energy investment and financing arm, is among the most active venture capital investors in emerging energy technology companies worldwide. Leveraging GE's deep energy industry and technology expertise, and based on a positive track record using SynapSense's technology in several GE data centers, GE Energy Financial Services invested venture equity in the company in 2010. The GE unit, along with a group of SynapSense's existing venture capital investors, provided funding for the development and market expansion of SynapSense's Data Center Monitoring, Active Control and Energy Management technology. At the same time, SynapSense was able to leverage GE's extensive footprint in the digital energy services space and grow its commercial presence by partnering with GE Intelligent Platforms, a top global software provider whose products can already be found in many US data centers.
"SynapSense is a strong addition to GE's digital energy, Smart Grid and Ecomagination-related investments, offering multiple commercial and development collaboration opportunities in a data center equipment market estimated at $40 billion a year, with annual electricity consumption costing $7 billion," says Kevin Skillern, head of venture capital investing at GE Energy Financial Services.
The results
SynapSense's Data Center Monitoring and Energy Management solutions have been deployed in data centers operated by Fortune 500 companies from Wall Street to Silicon Valley, including GE's data centers. SynapSense was recognized as part of the Global Clean Tech 100 by the UK Guardian and Clean Tech groups. Additionally, BusinessWeek and market researcher, YouNoodle, named the company one of the top 50 technology startups readers should follow. SynapSense's technology has also been adopted by the world's largest data center hosting company, the world's largest software company, the largest telecom company and America's largest bank.
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