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Chesapeake Bay Seed Capital Fund co-leads $650,000 investment in PaverGuide

Chesapeake Bay Seed Capital Fund co-leads $650,000 investment in PaverGuide


The Chesapeake Bay Seed Capital Fund has invested $300,000 into Worton-based PaverGuide Inc., a company that developed and sells a stormwater capture system for use with permeable pavers, the pavement pieces used in sidewalks, parking lots, driveways and crosswalks, for reducing stormwater runoff into the Chesapeake Bay, fund administrators announce today.

The investment is part of a $650,000 funding round co-led by the Chesapeake Bay Seed Capital Fund and the University System of Maryland’s (USM) Maryland Momentum Fund, which contributed $300,000. PinOak Capital also participated in the round.

The Chesapeake Bay Seed Capital Fund invests in Maryland-based startup companies with innovative technologies that may help improve air and water quality in the Chesapeake Bay area. Supported by funding from the Maryland Department of Natural Resources, the fund is administered by the Maryland Technology Enterprise Institute (Mtech), a unit of the A. James Clark School of Engineering at the University of Maryland. Chesapeake Bay Seed Capital Fund recipients are jointly selected by Mtech and the Maryland Department of Natural Resources.

“PaverGuide has made significant progress in the last 18 months,” said Jolene Gurevich, Manager of the Chesapeake Bay Seed Capital Fund. “There is clearly demand for the company's technology, both as a stormwater management tool and a replacement for stone base, at a fraction of the cost. We believe that PaverGuide’s CEO, Charlie White, has the ability to build a strong sales team and scale the company, creating more green jobs in Maryland, as well as reducing the flow of nutrients into the Bay.”

PaverGuide’s system is comprised of plastic, injection-molded, interlocking chambers, created from 100-percent recycled materials, that serve as a reservoir, structural base, and paver alignment system for installing permeable pavement. The chambers trap stormwater, allowing it to drain slowly into the soil rather than rushing into local waterways.

The company also offers a filter media that acts as a sub-base for the PaverGuide stormwater chambers while filtering pollutants, and cites reductions in the amount of phosphorous, copper, and zinc that drains into waterways by 89, 55 and 74 percent, respectively.

The media’s proprietary formulation was co-developed with Allen Davis, Professor and Charles A. Irish Chair in the Department of Civil & Environmental Engineering at the University of Maryland, through funding from the Maryland Industrial Partnerships (MIPS) program. PaverGuide holds an exclusive license to the media technology from the University of Maryland.

“We are excited to receive this second investment from the Chesapeake Bay Seed Capital Fund,” said White. “We plan to leverage this funding to grow our sales team and expand the company’s national footprint.”

PaverGuide’s system captures as much water in its 3.5-inch depth as ten inches of the traditional stone base it replaces for permeable paving, while reducing the excavation needed and overall installation cost by 25 percent, according to the company.

“This investment in PaverGuide’s development and commercialization of a system to replace stone as a road base and reservoir below permeable paving makes sense from a water quality perspective,” said Sarah Lane, Innovative Technology Coordinator for the Chesapeake and Coastal Service in the Maryland Department of Natural Resources. “Stormwater can pick up harmful pollutants and sediment and push both into our streams, rivers and the Chesapeake Bay, where they fuel algae blooms and block sunlight for underwater grasses, suffocating marine life. Slowing that stormwater down, reducing sediment and filtering pollutants from it will help lead to cleaner water and a healthier Chesapeake Bay.”

Prior to this round of funding, PaverGuide raised $175,000 in equity funding, including a previous $150,000 Chesapeake Bay Seed Capital Fund investment in 2017 and $25,000 from the TEDCO Rural Business Innovation Initiative (RBI2). The company also acquired $530,000 in non-dilutive funding, from sources such as MIPS, the Shore Hatchery Business Plan Competition, and Climate Ventures 2.0.

Previous Chesapeake Bay Seed Capital Fund recipients include: Manta BiofuelPaverGuide Inc.Smart Slope LLCTraffax Inc., and Zymetis (now Aemetis Inc.).

 

About PaverGuide

PaverGuide Inc. developed and sells a  system for installing permeable pavers, the pavement pieces are used in sidewalks, parking lots, driveways and crosswalks for reducing stormwater runoff into the Chesapeake Bay. The company also co-developed a stormwater filter media with Allen Davis, Professor and Charles A. Irish Chair in the Department of Civil & Environmental Engineering at the University of Maryland, through funding from the Maryland Industrial Partnerships (MIPS) program. PaverGuide holds an exclusive license to the media technology from the University of Maryland.

About the Chesapeake Bay Seed Capital Fund

The Chesapeake Bay Seed Capital Fund invests in Maryland-based startup companies with innovative technologies that may help improve air and water quality in the Chesapeake Bay area. Supported by funding from the Maryland Department of Natural Resources, the fund is administered by the Maryland Technology Enterprise Institute (Mtech), a unit of the A. James Clark School of Engineering at the University of Maryland. Chesapeake Bay Seed Capital Fund recipients are jointly selected by Mtech and the Maryland Department of Natural Resources.

About the Maryland Momentum Fund

The Maryland Momentum Fund is a new initiative of the University System of Maryland (USM) to provide late seed investment funding for promising technology ventures that come out of any of the twelve constituent USM institutions, its research parks, and its students, faculty, or graduates. With a $10 million commitment from the System already in place, the Fund is collaborating with UM Ventures (a joint initiative of the University of Maryland, Baltimore and the University of Maryland, College Park to commercialize technologies and expand industry collaboration) to reach out to area venture capitalists and angel investors for additional funds.

About PinOak Capital

PinOak Capital and its private partnership invest in early stage companies across the mid-Atlantic with an emphasis on Maryland’s Eastern Shore. PinOak invests in companies where it feels it can make a substantial contribution to management by way of expertise, industry contacts and strategy. PinOak is based in Easton, Maryland.

May 15, 2019


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