A startup launched by three graduates from the University of Wisconsin-Madison who recently received accolades from Forbes magazine has completed a funding round that helps put it on course to create hundreds of jobs by 2030.
H3X Technologies, an electric motor manufacturer based in a suburb of Denver, said Tuesday that it secured $20.3 million in funding. The Louisville, Colorado-based company specializes in developing and manufacturing electric motors for the aviation, industrial and marine industries.
H3X was founded by CEO Jason Sylvestre, Chief Technology Officer Max Liben and President Eric Maciolek, who have backgrounds working in the aerospace, automotive and motorsports industries. The three co-founders graduated from the University of Wisconsin-Madison and landed on Forbes' 30 Under 30 list this year.
The company's integrated motor drives can scale power from 30kW to 30MW which, according to a December 2023 report from the UW-Madison's College of Engineering, moves electric aviation closer to generating the power necessary to get a 737 in the air.
Its products can also be used as generators without additional hardware modifications, according to the startup.
"We're on an ambitious journey to become the world's leading supplier of advanced electric motors," Sylvestre said in a statement. "With remarkable speed, we've proven that this technology works and has a key role to play in enabling sustainable aviation, decarbonizing the marine and industrial sectors, and unlocking next-generation electrified defense technology."
The Series A was led by venture capital firm Infinite Capital. Lockheed Martin Ventures, Liquid 2 Ventures, TechNexus, Cubit Capital and Origin Ventures are among the 25 investors who participated in the equity round, according to H3X and a filing with the U.S. Securities and Exchange Commission.
H3X previously raised $9 million in debt, options and warrants, according to documents filed with the SEC. This includes a previous investment from Lockheed Martin Ventures, the investment arm of Lockheed Martin Corp. (NYSE: LMT), and $4.3 million raised during the winter 2021 cohort of startup accelerator Y Combinator.
Over the past two years, H3X has launched three integrated motor drives and delivered these products to leading defense and aerospace customers, H3X said. Since its founding in 2020, H3X has worked with NASA, the U.S. Air Force, aerospace and defense customers, the company says.
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The startup's recent Series A capital raise will allow it to "deliver on some very large contracts," Sylvestre said.
Funds will also expand H3X's production and operations and help it bring new integrated motor drives to the market.
The new products — its HPDM-1500 and HPDM-2300 motor drives — are expected to enhance the performance of electric aircraft, the company said. In some cases, the motor drives can double an aircraft's range because the motors weigh less than traditional motors and energy storage solutions, according to H3X.
"We were immediately impressed that H3X has solved the biggest engineering challenges to unlock major benefits for weight and volume-sensitive applications," Philip Carson, an investor at Cubit Capital, which participated in this round, said in a statement. "With strong traction today at the Department of Defense, we're excited about how they can leverage that success to scale across industries."
H3X designs, manufactures and tests its motors at its 17,000-square-foot headquarters at 410 S. Arthur Ave., Louisville, Colorado.
The startup is eligible to receive up to $2.95 million in tax incentives from the Colorado Office of Economic Development and International Trade for the creation of 433 jobs by 2030.
David Schuyler of the Milwaukee Business Journal contributed to this article.
