San Francisco-based lighting start-up Lemnis Lighting has raised $37.5m (£25m) in a fourth round of funding from unnamed African investors, as it looks to tap into a burgeoning market for energy efficient bulbs.
The equity funding, provided by a consortium of existing and new investors, values the company at $170m (£113m) and will enable the firm to expand its portfolio of LED applications, and develop its distribution model into new international markets.
The company produces a $40 (£26) LED screw-in Pharox lightbulb that produces about the same amount of light as a 40 or 60 watt incandescent bulb, while consuming only six watts.
LEDs, or light emitting diodes, are semiconductor devices that emit light when connected to an electric current. Although LEDs are currently more expensive than traditional incandescents, they last far longer and can use just a tenth of the energy.
The combination of declining prices and energy efficiency regulations have boosted demand for LED bulbs in recent years, and research firm iSuppli recently warned that shortages could soon develop if extra manufacturing capacity is not developed.
The company said that demand has climbed from 57 billion units in 2008 to 63 billion units last year, but with demand growing at double digits and current global capacity reaching just 75 billion units a supply crunch could soon emerge.
Lemnis founder Warner Philips, who is the grandson of the founder of Philips Lighting, said in a statement: "With the LED space predicted to grow to $1.6bn [£1.06bn] by 2012, we are now well positioned to meet the growing consumer demand for lighting that is energy efficient and non-harmful to the environment. "
The LED market is dominated by commercial and street lighting applications and, while the company already provides street lighting technologies alongside its domestic light bulbs, it hinted recently that it will be making announcements about an expanded product line at the Lightfair trade show in Las Vegas in May.
Lemnis is a Dutch company with US headquarters in San Francisco. It is a subsidiary of Tendris Holding.
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