Fallbrook Technologies continues growth, raises $8.3 million

Jul 21, 2014
Austin American Statesman

Continuing its push for growth, a Central Texas company that has developed a more fuel-efficient transmission system for cars and trucks has received $8.3 million for expansion


Fallbrook Technologies said the investment is part of a $20 million round the company is in the process of raising. The company collected the funding from 12 investors including previous backer Long-Term Solutions of San Francisco


The company was founded in 2004 in San Diego. In 2012, Fallbrook moved its headquarters to Cedar Park, where it already had engineering development operations. Currently, the company has about 100 employees, most of them based in Central Texas. It also operates offices in Europe and China


Fallbrook has raised a total of $130 million over its 10-year history. The company began by making innovative bicycle transmissions and moved into the auto world


Fallbrook’s flagship product is its “NuVinci” continuously variable transmission, which it says is a greener and more fuel technology for cars, trucks and other types of vehicles


In recent years, the company, which holds 600 patents, has signed deals with three major manufacturers that have accelerated its growth


Dana Holding, based in Maumee, Ohio, signed a licensing agreement to adapt Fallbrook’s technology for passenger and certain off-highway vehicles


Fallbrook granted Allison Transmission, based in Indianapolis, rights to develop and commercialize Fallbrook’s transmission technology for markets including commercial vehicles, military use and certain large stationary equipment markets


The company also signed a licensing agreement with Team Industries of Bagley, Minn., for use in small off-highway vehicles. Team Industries’ research showed an 8 percent to 10 percent improvement in fuel economy in vehicles using Fallbrook transmissions


Klehm said the latest funding will be used to explore new opportunities including other applications in transportation and expanding into the oil and gas industry


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