An artificial intelligence startup focused on sustainable building has raised more than half of a $9.5 million round, its largest investment yet, according to a filing with the U.S. Securities and Exchange Commission.
The raise brings Multiscale Technologies Inc.'s total funding to at least $6.2 million. There were seven investors participating in the round who were not identified. In March, it raised just over $1 million of a plan to raise $2 million, according to another SEC filing. The company wasn’t able to be reached for comment.
The venture arm of semiconductor manufacturer Micron Technology Inc. (Nasdaq: MU) invested in Multiscale Technologies as part of its Startups for Sustainability pitch event, according to a March announcement from Micron. That announcement came three months after Micron announced it would bring 500 jobs to Atlanta for a design center.
The investment is a microcosm on how corporate tech expansions benefit the city's growing startup ecosystem. Both companies are based in Tech Square, Georgia Tech's innovation district in Midtown. Multiscale is based in the Coda building, where global technology firm Cisco Systems Inc. announced a 700-job expansion last year. Coda includes university, startup and corporate offices in an effort to blend collaboration across those organizations.
Andrew Byrnes, Micron’s lead investor for its AI fund, was named in Multiscale’s latest SEC filing.
Multiscale provides data insights for manufacturing companies to make more sustainable materials. It can be used for things such as jet engines, medical devices and semiconductors, according to its website.
The global sustainable construction material market that the company addresses is projected to grow 13% annually reaching $574 billion by 2027, according to market research firm Emergen Research.
Following recent passage of the Inflation Reduction Act, demand for sustainable technology is set to surge. Multiscale could see growth from the bill’s funding provisions such as $1 billion to upgrade building energy codes; $2 billion to reconstruct existing auto manufacturing facilities; $1 billion to improve energy efficiency of affordable housing; and $250 million to convert federal buildings into high-performance green buildings.
Local companies that provide similar services include Atomic-6, which manufactures lightweight components for the aerospace and ballistic industries, and Cove.tool, which provides software to help find the cheapest products for structures to be more energy efficient.
Multiscale was founded in 2020 by Surya Kalidindi, a professor at the Woodruff School of Mechanical Engineering at Georgia Tech, and Vasu Kalidindi, former CEO of Washington-based business consulting company Nfinity, according to their LinkedIns. Kalidindi is also Multiscale’s CEO.
