Pixelligent scientists prepare nanocrystals for use in LED applications. (Credit: Pixelligent)

Last week, Baltimore-based nanotech firm Pixelligent Technologies closed a funding round of $5.5 million to continue its development and growth. This marks a total of $23 million in equity funding the firm has raised to date, plus another $10 million its received in the form of government grants to develop its technology.

Pretty impressive, considering that the company was on its deathbed a few years ago.

Pixelligent was founded in the year 2000 by Gregory Cooper shortly after he received his Ph.D. in Physics. Cooper, who is currently the CTO of the company, was soon joined by two colleagues: Serpil Gonen Williams, a chemist, and Gene Chen, an electrical engineer, both of whom are still with the company.

The original vision of the company was to use its expertise in nanomaterials to develop composites for use in optical lithography, a process used for the manufacture of computer chips. However, the semiconductor business is a tough one, as the company discovered. Despite awards during its incubator phase, its attempts to raise enough money to develop its technology for the market failed.

The combination of this and a failed commercial partnership sent the company into Chapter 11 bankruptcy in March of 2007. One year later, in March of 2008, the Court appointed Craig Bandes as the companys Chief Restructuring Officer. At the time, Bandes was President and CEO of Global Secure Corp. Prior to that, he had cofounded Focus Technology Consulting. Despite these successes, he didnt have an easy task ahead of him in rescuing the struggling startup.

I helped them work through process of reorganization, settling litigation with partner that didnt work out, and getting control of its IP, Bandes told me. As a consultant, I gave the company about a 10-20% chance of survival.

The company emerged from bankruptcy in April of 2009 with a plan for growth that involved moving away from the semiconductor market and a new President and CEO Craig Bandes. Bandes credits the successful emergence from bankruptcy to the companys strong foundation.

The only thing that didnt need to be turned around was the technology, he said.

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