Venture Creations launches first company

George Stadler

Kenneth Reed ’71

A startup company that specializes in burning fuel more cleanly and efficiently is the first to hatch from RIT’s incubator program, Venture Creations.

Cerion Energy recently finalized a $1.2 million financing deal. Braemar Energy Ventures of New York City is the lead investor. Excell Partners Inc. of Rochester is also a partner. Cerion was founded earlier this year by a team of entrepreneurs, researchers and industry sector experts originating at RIT. The energy company focuses on the production of a diesel fuel additive that uses nanoparticles to burn more cleanly and efficiently.

Cerion leaders believe that a U.S. transportation industry based upon diesel power or diesel-electric hybrid power will substantially lessen American dependence on foreign oil and significantly contribute to the reduction in the growth of greenhouse gases.

“The EPA has mandated new 2007 policies requiring both drastically reduced diesel particulates and emissions,” says George Stadler, chief executive officer of Cerion. “Achieving this will mean significantly higher costs for the nation’s trucking industry. We have a major market opportunity with our products, which provide higher fuel efficiency, reduced particulate emissions and lower maintenance costs.”

“Cerion’s business model and products are exactly the kind of investment we target—companies with superior technologies that address our energy future and management teams with marketplace experience,” says William Lese, managing director at Braemar Energy Ventures. “We see enormous potential in helping solve the problems arising from diesel fuel use and are particularly impressed by Cerion’s solutions.”

Adds Theresa Mazzullo, chief executive officer of Excell Partners: “Excell is proud to be a part of the broad base support coming from the Rochester community, the state of New York and the larger venture capital community. This level of support is a testimony to the entrepreneurial ecosystem that is rapidly developing in our region to help commercialize promising technologies like Cerion Energy.”

The company received further financial incentives from the Empire State Development Corp., Monroe County Economic Development Agency, and the City of Rochester.

“Cerion was an inaugural member of The Entrepreneurs Network, launched by Monroe County last year to grow our innovation economy. Monroe County is pleased to provide Cerion with $75,000 in assistance for the purchase of equipment to take their company to the next level,” says Monroe County Executive Maggie Brooks.

“This company is the first off-shoot from the RIT incubator and epitomizes our mission to improve education and economic development,” adds Rochester Mayor Robert Duffy. “Assisting high-tech companies that demonstrate substantial growth, like Cerion, is very important to the city. Much of our area’s growth is expected to come from the high-tech sector and we are committed to playing a role in their success.”

Venture Creations, located at 125 Tech Park Drive, is now home to a dozen startup companies. Benefits and services at Venture Creations include access to consulting from RIT faculty and staff; hiring of RIT co-ops; venture coaching in the areas of strategy, marketing, business planning and legality; tax and accounting consulting, technical support and more.

Stadler joined RIT in 2005 as the executive director of the incubator. He has been involved in the successful start-up and/or operation of over 70 university-developed high technology companies. Reed, Cerion’s chief technology officer, is a physical chemist with 30 years experience and 24 patents. Reed was a member of the RIT Board of Trustees while serving as chairman of the Alumni Network Board of Directors. Cerion’s research and development team is composed of six RIT professors and staff members, and three RIT student interns.

“Cerion Energy is a terrific example of the type of business that RIT is proud to launch from our Venture Creations incubator. Kenneth Reed ’71, Cerion’s technical founder, is not only an alumnus and has been a major supporter of RIT over the years, but he and Cerion Energy will continue to partner with our faculty, staff and students to further develop the benefits of nanoparticles to formulate diesel fuel additives and to other applications of this cutting edge technology,” says Donald Boyd, vice president for research. “The resulting research, experiential learning for our students, and economic development of our region achieved through this partnership fits perfectly with the objectives we have established for our Albert J. Simone Center for Innovation and Entrepreneurship.”

For more information on Cerion, visit www.cerionenergy.com.