AgION Technologies Inc.

As far as silver bullets go, AgION Technologies Inc. is aiming in the right direction. The company, founded in 1997 and located in Wakefield, Mass., develops antimicrobial solutions based on silver that naturally and continuously inhibit the growth of bacteria, mold and fungus on a variety of surfaces. AgION's patented technology is used in the consumer, industrial and healthcare sectors and has been successfully applied to a variety of products, including cell phones, shoes, keyboards, pens, water filters, air conditioning and heating units, medical catheters, ice machines and faucet handles. In May the company announced a multi-year, exclusive partnership with Germany's BASF AG, one of the world's largest chemical companies. Their goal is to commercialize a range of BASF copolymers that will feature AgION's antimicrobial technology. These copolymers are used in the manufacture of household appliances, vehicles, cosmetic packaging, building and construction materials, and consumer electronics - each of them massive markets on their own. In July, AgION announced a partnership with Omnipure Filter Co., the world's premier supplier of inline carbon filtration components. Omnipure, in response to increasing consumer and industrial demand for cleaner water, will feature AgION's antimicrobial technology in its line of carbon-block water filters and patented Aquabond technology to achieve better tasting and sediment free water. It demonstrates the ability of AgION to partner with world-class organizations and preserve its commanding position in the product value chain.
Visit: www.agion-tech.com

RuggedCom Inc. - A Smart Grid IPO Story

In 2001, former General Electric executive Marzio Pozzuoli had an epiphany of sorts - what today seems an obvious trend. If the massive North American electric grid was to deliver electricity to the power-hungry industries of the digital economy, it needed an overhaul. The current system, he thought at the time, was too antiquated and unreliable to do the job. The grid was in desperate need of modernization.

Pozzuoli, an engineer who designed critical protection and control equipment for the electric-utility industry, saw a need for new technologies that could help turn the power grid of the future into an intelligent, self-healing, real-time system. Such a "smart grid" could, if designed properly, monitor its health at all times. Not only could it alert officials as soon as problems arise, it would take corrective actions on its own. Had this capability existed on Aug. 14, 2003, the massive cascading blackout that struck the northeast of North America, plunging about 50 million people into darkness, might have been prevented.

Of course, North America isn't alone. The benefits of the smart grid apply equally to Europe and rapidly developing economies such as India and China. This is particularly true as the world moves toward the large-scale deployment of renewable energy sources, such as wind and solar. To ensure reliability and availability, these intermittent sources must be intelligently managed as they're integrated into the larger electricity system.

Like all great entrepreneurs, Pozzuoli spotted the gap in the market. This vision compelled him to quit his steady job and found Ontario, Canada-based RuggedCom Inc., a maker of rugged networking and security equipment designed for the harsh environment of the smart grid. It wasn't an easy decision, as the early days of any startup venture are not for the faint of heart. But the move proved prescient.

RuggedCom selected the venture capital arm of Ontario Power Generation (OPG) as the lead investor in its first and only private-equity financing round. Peter Crombie and Scott MacDonald, the former OPG team members responsible for the investment in RuggedCom, are now partners with Emerald Technology Ventures and continue to manage the investment on behalf of OPG.

Pozzuoli's instincts were impeccable. Since the founding of RuggedCom, the electric utility industry has readily adopted the company's hardened communications equipment to upgrade, enhance and add smarts to the grid. RuggedCom was included in the Canadian 2006 & 2007 Deloitte Technology Fast 50 in recognition of its market vision and rapid, profitable growth. Some have even called RuggedCom the "Cisco of the smart grid," though its products are also ideal for transportation and industrial applications.

Adding to its market leadership, RuggedCom completed a highly successful initial public offering on June 21 on the Toronto Stock Exchange, trading under the symbol RCM. Gross proceeds of the IPO were about $46 million (CDN), or $44.6 million (U.S.). Following the IPO Scott MacDonald, who had been serving as chairman of RuggedCom since the venture financing in 2003, resigned from the board. Existing director Peter Crombie was appointed as the new Chairman.
Visit: www.ruggedcom.com

Vaperma Inc.

Vaperma Inc., located in St-Romuald in the Canadian province of Quebec, develops, manufactures and supplies advanced gas separation systems based on its breakthrough polymer membrane technology. The hollow-fiber membrane systems can be used in a range of energy and industrial markets -- for example, to remove water from alcohol during the production of fuel-grade ethanol, or to perform a process call "dehydration" on raw natural gas to remove hydrates and prevent corrosion. The membranes use less energy, resulting in fewer greenhouse gases, compared to conventional chemical methods. Vaperma officially opened its new 22,000-square-foot research and technology centre in St-Romuald in June. The centre will be used to develop and pilot test the company's patented Siftek™ membrane technology, as well as produce enough gas separation membranes on a pre-commercial, demonstration basis to satisfy initial customer needs. Over the past 20 months Vaperma has been successful in moving its technology from the lab and into demonstration phase by partnering with potential customers, including ethanol producer GreenField Ethanol and natural gas producer EnCana.
Visit: www.vaperma.com

A complete list of our portfolio companies can be found at:
www.emerald-ventures.com/ourPortfolio.aspx