Engineered Propulsion Systems has completed a funding round for $765,000.
This is the latest round for the New Richmond-based manufacturer, currently in the process of attaining certification for its Graflight V-8 engine from the Federal Aviation Administration.
All the investment dollars for this round came from previous investors, according to CFO Paul Mayer. He predicted the certification process will be complete by September, and if all goes well, production of this “greener” diesel engine will begin about a year from now.
The company so far has raised $31 million of the $40 million Mayer says is needed to fund production of the engine.
“Raising private equity for startups is always difficult,” Mayer told WisBusiness.com, adding the seven-year certification process doesn’t help.
For companies like this, he said, investors need to know in the second or third year that the company can make it to the end with a profit. Many investors in Engineered Propulsion Systems are aviation enthusiasts who see value in the long-term. Read the full story here.