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MagnoTherm Solutions

MagnoTherm Solutions: Advancing Sustainable Cooling Tech with EIC Accelerator Funding

GermanyEIC Accelerator2021

Table of Contents

  1. The EIC Accelerator Project
  2. The Funding Rounds
  3. The Press Releases
  4. The Technology Advancements
  5. The Partnerships and Customers
  6. The Hiring and Company Growth
  7. The Media Features and Publications

1 The EIC Accelerator Project

The EIC Accelerator program, part of the European Innovation Council (EIC), aims to support small and medium-sized enterprises (SMEs) and startups with high-potential innovations. This program is particularly focused on deep technology and breakthrough innovations that can significantly impact the European market and beyond. The EIC Accelerator provides funding through a combination of grants and equity investments to help companies develop and scale their innovations.

Funding Structure

The EIC Accelerator offers a diverse funding structure, combining grants and equity investments. The grant component allows successful applicants to receive funding of up to €2.5 million to cover the costs associated with the development of their innovations. This funding is crucial for early-stage companies looking to validate their technology, conduct market research, and develop prototypes.

In addition to grants, the EIC Accelerator provides equity investments, which can amount to up to €15 million until 2024 and €10 million from 2025 onwards. This equity funding is designed to help companies scale their operations and attract additional private sector investment. By offering both grant and equity options, the EIC Accelerator aims to fill the funding gap that many innovative startups face, enabling them to transition from concept to commercialization.

Purpose in the European DeepTech and Startup Ecosystem

The EIC Accelerator plays a pivotal role in fostering innovation within the European DeepTech and startup ecosystem. It not only provides financial support but also offers access to a network of mentors, investors, and industry experts. This ecosystem encourages collaboration and knowledge exchange, which are essential for developing cutting-edge technologies. By focusing on high-impact innovations, the EIC Accelerator aims to enhance Europe's global competitiveness and address pressing societal challenges.

Supporting Company Growth and Private Funding

One of the key objectives of the EIC Accelerator is to help companies scale their operations effectively. By providing initial funding through grants, the program allows companies to reach critical milestones that make them more attractive to private investors. Once a company demonstrates its potential for growth and innovation, it is better positioned to secure additional funding from venture capitalists, angel investors, and other private sources. This synergistic approach not only facilitates the growth of individual companies but also strengthens the overall innovation ecosystem in Europe.

Case Study: MagnoTherm Solutions and the MCD Project

Company Overview
MagnoTherm Solutions, a German company, is a notable winner of the EIC Accelerator. The company specializes in sustainable refrigeration technologies, focusing on the development of a highly efficient Magnetic Cooling Device (MCD). The project was submitted as part of the EIC Accelerator program on October 6, 2021, and successfully progressed through the evaluation stages.

Project Description: MCD
The MCD project aims to revolutionize refrigeration systems by utilizing solid-state magnetic cooling technology. This innovative approach offers a more sustainable alternative to conventional refrigeration methods, which often rely on harmful refrigerants and high energy consumption. The MCD leverages the principles of magnetocaloric effect, where certain materials exhibit a change in temperature when exposed to a magnetic field. This technology is not only energy-efficient but also environmentally friendly, aligning with global sustainability goals.

Technology Basics and Background
The magnetocaloric effect is a phenomenon observed in specific materials that can be magnetized. When these materials are placed in a magnetic field, they absorb heat and subsequently cool down. By cycling the magnetic field on and off, the MCD can achieve significant temperature reductions, making it suitable for various refrigeration applications, including commercial, industrial, and even residential uses.

Traditional refrigeration systems often rely on vapor-compression cycles, which involve the use of refrigerants that can contribute to ozone depletion and global warming. In contrast, the MCD eliminates the need for these harmful substances, offering a clean alternative that minimizes environmental impact.

MagnoTherm Solutions aims to bring this technology to market, making strides in energy conservation and sustainability. By receiving support through the EIC Accelerator, the company is well-positioned to further develop its technology, conduct extensive testing, and ultimately commercialize its innovative refrigeration solution.

In summary, the EIC Accelerator program serves as a vital support mechanism for innovative companies like MagnoTherm Solutions. By providing both grant funding and equity investment opportunities, the program not only helps these companies scale but also strengthens the European innovation landscape, particularly in the deep technology sector.

2 The Funding Rounds

MagnoTherm Solutions: Financing and Funding Overview Since EIC Accelerator Award

MagnoTherm Solutions, based in Germany, has made significant progress in securing financing and advancing its commercialization efforts since winning the EIC Accelerator grant following its Step 2 proposal submission on October 6, 2021.

Financing Raised & Funding Rounds

  • Total Funding Raised: Estimates of total capital raised by MagnoTherm range from approximately $9.07 million to $13.8 million across multiple rounds since inception.
  • Notable Seed Round (April 2023): The company closed a €6.3 million seed round (approx. $6.9 million), led by Extantia, with participation from Revent, BMH Beteiligungs-Managementgesellschaft Hessen, LAUDA Dr. R. WOBSER Beteiligungs-mbH, as well as several angel investors through the better ventures club.
  • This funding was earmarked for scaling up mass production of their sustainable refrigerator product line.
  • ENGIE New Ventures Investment (August 2024): ENGIE New Ventures’ investment brought MagnoTherm’s total seed financing to €6.8 million, supporting further development of hydrogen liquefaction technology using magnetic refrigeration.

Summary Table: Key Recent Funding Events

DateRoundAmountLead/Key Investors
Apr 2023Seed€6.3M ($6.9M)Extantia (lead), Revent, BMH Beteiligungs-Managementgesellschaft Hessen, LAUDA Dr., better ventures angels
Aug 2024Seed extensionUp to €6.8MENGIE New Ventures

Additional minor grants and accelerator/incubator participations have been noted between late 2021–early 2024.

Timing & Amounts of Notable Rounds

  • April 3/4, 2023: Closed a major seed round for €6.3 million ($5.45–$6.9M reported).
  • August 7, 2024: Announced new investment from ENGIE New Ventures; cumulative seed funding reached €6.8 million.
  • Other smaller rounds include various incubator/accelerator participations through early-to-mid-2020s; these typically did not disclose individual amounts but contributed to the overall total raised.

Investor Information

The following investors have participated in recent notable rounds:

  • Extantia: Lead investor in April 2023 seed round.
  • Revent
  • BMH Beteiligungsmanagement
  • LAUDA Dr.R.WOBSER Beteiligungs-mbH
  • Angel investors via better ventures club: Katrin Pucknat, Arne Stoschek, Willi Tscheschner, Christoph Behn.

For subsequent investments:

  • ENGIE New Ventures: Strategic corporate VC arm supporting industrial development and hydrogen-related applications starting August 7th, 2024.

    • Other earlier-stage or competition-related backers include Plug and Play Silicon Valley Summit among at least fifteen identified participants throughout all rounds.

    Company Valuation

    Public estimates place MagnoTherm’s enterprise valuation at approximately $35 million as of October 2023 according to market intelligence platforms. Earlier reports suggest an indicative valuation near €31–32 million during prior funding events but exact figures per round are not always disclosed.

    Exit Events: IPOs or Acquisitions

    As of April 24th of this year:

    There is no public record or announcement regarding an IPO (Initial Public Offering), acquisition/buyout event involving MagnoTherm Solutions.[All sources]

    The company remains privately held with ongoing development projects aimed at commercializing advanced cooling technologies for both food retail/refrigeration markets and hydrogen infrastructure.

    Conclusion

    Since receiving EIC Accelerator funding in October 2021:

    MagnoTherm has successfully raised multiple rounds totaling over $9–14M (€13+M) including key contributions from strategic VCs such as Extantia and ENGIE New Ventures—fueling both product industrialization and technology innovation milestones like mass-producing sustainable refrigerators and developing magnetic hydrogen liquefaction systems.

    No exit event has transpired; the company continues expanding its footprint within climate tech hardware markets.

    Sources

    Funding – MAGNOTHERM Solutions GmbH €6.3M Seed Round to Commercialize First Sustainable Refrigerator MAGNOTHERM closes €6.3 million seed funding round MagnoTherm Stock Price, Funding & Financials - CBInsights Magnotherm Company Information - Seedtable MAGNOTHERM company information & investors - Dealroom.co

    3 The Press Releases

    MagnoTherm Solutions GmbH: Overview and Developments

    MagnoTherm Solutions GmbH, a German company and winner of the EIC Accelerator funding, has been at the forefront of sustainable cooling technology since receiving the award in October 2021. Founded as a spinoff from the Technical University Darmstadt, MagnoTherm specializes in magnetic cooling technology, leveraging the magnetocaloric effect to provide environmentally friendly and efficient refrigeration solutions.

    Technology and Products

    MagnoTherm's innovative technology replaces traditional compressor-based systems with magnetic cooling, which eliminates the use of harmful refrigerant gases and improves energy efficiency by up to 40% compared to conventional methods. Key products include:

    • POLARIS: The first commercial magnetic beverage cooler, which utilizes the magnetocaloric effect to cool without harmful gases or compressors.
    • ECLIPSE 2D: A commercial refrigerator launched in late 2024, marking a significant milestone in sustainable cooling for supermarkets and beyond.
    • MS90 and MS30: Devices designed to test magnetocaloric materials and demonstrate the magnetocaloric effect, respectively.

    Partnerships and Collaborations

    MagnoTherm has collaborated with MyMuesli to unveil POLARIS, and with Forward AM for 3D printing solutions to manufacture complex components for the POLARIS cooling system. Additionally, they have worked with the Helmholtz Center Dresden-Rossendorf for magnetic hydrogen liquefaction validation.

    Funding and Awards

    In 2023, MagnoTherm secured €6.3 million in funding to accelerate mass production of its sustainable refrigerators. They also won the 2024 SET Awards in the 'Industry' category, recognizing their innovative cooling technology.

    Team and Leadership

    MagnoTherm is led by co-CEOs Timur Sirman and Dr. Max Fries, with an international team of over 40 members. The company's leadership and team play a crucial role in advancing magnetic cooling technology.

    Press Releases and Updates

    MagnoTherm regularly publishes updates on their website, including news about product launches, partnerships, and sustainable cooling advancements. Recent press releases highlight the launch of ECLIPSE 2D and the company's participation in sustainability events.

    Sources

    4 The Technology Advancements

    MagnoTherm Solutions GmbH: Current Capabilities and Advancements

    MagnoTherm Solutions GmbH, a Germany-based startup, has been at the forefront of sustainable cooling technologies since its inception in 2019. As a spin-off from the Technical University of Darmstadt, the company has made significant strides in developing magnetic cooling systems that eliminate the need for compressors and gas-based refrigerants, offering a more energy-efficient and environmentally friendly alternative.

    Current Capabilities

    MagnoTherm's innovative technology utilizes the magnetocaloric effect (MCE), where certain materials change temperature when exposed to magnetic fields. This allows for cooling cycles without harmful refrigerants, reducing energy consumption by up to 30% and eliminating direct greenhouse gas emissions. Their product lineup includes the POLARIS, an 80-liter beverage cooler available for rent or purchase, and a Double Door Refrigerator with a 1000-liter capacity, which is poised to enter the commercial market with enhanced energy efficiency.

    Advancements Since EIC Accelerator Funding

    Although specific details about advancements directly resulting from the EIC Accelerator funding in October 2021 are not available, MagnoTherm has made notable progress in its technology and market presence:

    1. 3D Printing Breakthroughs: MagnoTherm has successfully demonstrated the 3D printing of critical magnetocaloric materials like lanthanum-iron-silicon (La-Fe-Si), enabling optimized geometries for enhanced performance across a wide temperature range.
    2. Seed Funding and Partnerships: MagnoTherm secured significant seed funding, initially €6.3 million in 2023, and later increased to €6.8 million with investments from ENGIE New Ventures. This funding supports the commercialization of its sustainable refrigerator and development of hydrogen liquefaction technologies.
    3. Market Demonstration: MagnoTherm's POLARIS beverage cooler has been showcased at events like ChangeNOW in Paris, demonstrating the practical application of magnetocaloric cooling in the market.

    New Features and Demonstrations

    MagnoTherm continues to innovate by applying its magnetocaloric technology to various sectors, including refrigeration, hydrogen liquefaction, and server cooling. The company's focus on scalable, industrial solutions positions it well for future growth.

    Patents and Scientific Studies

    While specific information on new patents or scientific studies published since the EIC Accelerator funding is not available, MagnoTherm's advancements in 3D printing magnetocaloric materials highlight its ongoing commitment to research and development.

    Conclusion

    MagnoTherm Solutions GmbH has made substantial progress in developing sustainable cooling technologies, leveraging advancements in materials science and additive manufacturing. Its innovative approach to cooling without harmful refrigerants positions the company as a leader in the transition towards more sustainable energy systems.

    Sources:

    5 The Partnerships and Customers

    MagnoTherm Solutions: Partnerships and Developments

    MagnoTherm Solutions GmbH, based in Darmstadt, Germany, has been actively expanding its partnerships and customer base since receiving support from the EIC Accelerator funding. The company specializes in magnetic cooling technology, leveraging the magnetocaloric effect to create efficient and sustainable cooling systems.

    Existing Partnerships

    • ENGIE New Ventures: A significant partnership involves ENGIE New Ventures, which invested in MagnoTherm as part of a broader strategy to develop renewable hydrogen supply chains in Europe. This collaboration aims to enhance MagnoTherm's hydrogen liquefaction technology, making it more economically viable for industrial applications.
    • MyMuesli: MagnoTherm collaborated with MyMuesli to introduce POLARIS, a magnetic beverage cooler, marking a step into commercial applications of magnetic cooling technology.
    • Helium Center Dresden-Rossendorf: MagnoTherm has also collaborated with the Helmholtz-Zentrum Dresden-Rossendorf to validate its magnetic hydrogen liquefaction technology in laboratory settings.

    New Partnerships and Customers

    While specific new partnerships or customer names are not detailed in the available information, MagnoTherm has been engaging in various collaborations:

    • EDEKA Partnership: In August 2024, MagnoTherm partnered with Daniel Patschull, owner of EDEKA, though the details of this collaboration are not specified.
    • Investors: Recent funding rounds include investments from Extantia Capital, BMH Beteiligungs-Managementgesellschaft Hessen mbH, Lauda Dr R. Wobser Beteiligungs-Gmbh, and Revent, as well as angel investors, demonstrating an expansion of its financial and strategic partnerships.

    Nature of New Relationships

    MagnoTherm's partnerships focus on scaling its magnetic cooling technology for both commercial and industrial applications. These collaborations are aimed at further developing its sustainable refrigeration solutions and hydrogen liquefaction systems. For instance, the partnership with ENGIE is crucial for integrating MagnoTherm’s technology into the hydrogen economy, potentially transforming how hydrogen is transported and stored.

    Positioning and Advancements

    MagnoTherm's relationships are positioning the company as a leader in sustainable cooling technologies. By partnering with significant players like ENGIE and collaborating with key retailers, MagnoTherm is advancing its technology's scalability and market adoption. The investment in its mass production capabilities and the development of new products, such as the POLARIS beverage cooler, are testament to its strategic growth.

    Scaling and Technology Advancements

    The partnerships are crucial for MagnoTherm's technology advancements and scaling efforts. By securing funding and collaborating with industry experts, MagnoTherm can continue to refine its magnetic cooling technology, making it more efficient and economically viable. This positions the company to meet growing demands for sustainable cooling solutions across various sectors, including food retail and the hydrogen industry.

    Sources

    6 The Hiring and Company Growth

    MagnoTherm Solutions GmbH: Team Growth and Hiring

    MagnoTherm Solutions GmbH, a Darmstadt-based climate tech startup, has been innovating in the field of magnetic cooling technology since its founding in 2019. The company received significant recognition and funding, including the EIC Accelerator funding in October 2021, which has likely contributed to its growth trajectory.

    Current Headcount and Team Size

    As of October 2023, MagnoTherm employs an interdisciplinary team of about 40 professionals. This marks a significant increase from the six-member founding team, indicating substantial growth over the years.

    Hiring and Team Growth

    While specific details about current hiring processes are not readily available, MagnoTherm's expansion from a small founding team to a team of 40 professionals suggests ongoing recruitment efforts. The company's growth in personnel is crucial for developing and refining its magnetic cooling solutions.

    Key Positions and Recent Hires

    There is no detailed information available on specific key positions recently hired. However, the company's leadership includes Co-CEOs Timur SİRMAN and Dr. Maximilian Fries, CTO Dimitri Benke, and CPO Jeffrey Pickett, among others.

    Impact of New Team Members

    The addition of new team members is vital for MagnoTherm's future growth and scalability. These professionals bring diverse expertise in materials science and engineering, enabling the company to enhance its innovative cooling technologies and expand its product offerings. For instance, MagnoTherm's magnetic cooling technology can increase efficiency by up to 40% and eliminate the use of refrigerant gases, contributing significantly to sustainability goals.

    Management and Founding Team Changes

    There are no reported major changes in the founding team's composition. The company continues to be led by its original co-founders, who have been instrumental in driving its technological advancements and securing strategic investments.

    Future Outlook

    MagnoTherm's team growth supports its mission to revolutionize the cooling industry through sustainable technologies. The company's involvement in projects like the EU-funded HyLICAL project, aimed at building Europe's first magnetic liquefactor of hydrogen, highlights its potential to impact the broader energy transition landscape. As MagnoTherm continues to scale, it is positioned to play a pivotal role in reducing carbon emissions and promoting sustainable energy solutions.

    Sources: - MAGNOTHERM Solutions GmbH April 2023

    7 The Media Features and Publications

    Overview of MagnoTherm Solutions

    MagnoTherm Solutions GmbH, a German company based in Darmstadt, received the EIC Accelerator funding in October 2021. Since then, the company has gained significant media attention for its innovative magnetic cooling technology, known as magnetocaloric refrigeration. This technology is more energy-efficient and environmentally friendly compared to traditional cooling systems, which rely on harmful refrigerants like those used in gas-compression refrigerators.

    Media Features and Publications

    MagnoTherm has been featured in various publications due to its groundbreaking work in sustainable cooling. For instance, the Mitteldeutscher Rundfunk (MDR) visited the MagnoTherm office for a video on "Einfach genial," highlighting the company's unique approach to cooling. Additionally, Magnetics Magazine has spotlighted MagnoTherm's efforts in the sustainability movement with its magnetocaloric refrigerator, emphasizing the company's success in making the concept appealing from a marketing perspective.

    Podcasts and Interviews

    Timur Sirman, co-founder of MagnoTherm, appeared on the "Tech and Trees" podcast, discussing the company's mission to revolutionize cooling technologies by reducing energy usage and emissions in industries like supermarkets. He shared insights into sales, customer interactions, and fundraising strategies.

    Conference and Fair Participations

    MagnoTherm participated in the IEEE Magnetic Frontiers Conference 2024 in Darmstadt, Germany, offering industry expertise on bringing magnetic cooling solutions to the market. The company also attended ChangeNOW in Paris, a global event focused on driving positive transformation, where they demonstrated their Polaris beverage cooler.

    Event Involvement

    MagnoTherm premiered its sustainable magnetic refrigerator at EDEKA Patchull E-Center Darmstadt, marking the first retail setting for this technology. Furthermore, MagnoTherm collaborated with MyMuesli to unveil POLARIS, a magnetic beverage cooler, at an exclusive event in Munich.

    MagnoTherm's involvement in events and conferences underscores its commitment to advancing sustainable cooling solutions and contributing to global discussions on environmental innovation.

    Sources:

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