Last month, execs at M2E Power, which had been developing motion-powered chargers and energy storage devices, told us that it had changed its focus significantly and was “in the midst of selling the company to another entity.” Well, yesterday morning VatorNews reported (hat tip CNET) that a company called Motionetics has bought up M2E Power’s assets.
The size of the deal wasn’t disclosed, but we’re guessing it’s pretty small. M2E Power appeared to have only prototypes and designs for the motion-powered technology, not actual commercial-ready technology — and it hadn’t announced any big customer deals. It’s strategy of focusing on consumer electronics and mobile phones just didn’t seem to be working, which is probably one reason why M2E execs told us they were restructuring and looking to focus more on the vehicle market.
As for M2E Power’s acquirers, there’s very little information about what Motionetics does, other than an explanation on its web site that it “designs and builds next generation energy devices.” According to VatorNews, which spoke with Motionetics Co-founder Layne Simmons, Motionetics is based in Idaho and will be working on military and consumer applications with M2E Power’s assets.
I’d be really curious to know how much the assets were really worth. There were actually some doubts that M2E Power’s technology could do what it said it could do. Krassen Dimitrov, a Group Leader at the Australian Institute for Bioengineering and Nanotechnology at the University of Queensland, who predicted the demise of algae fuel company GreenFuel (which went out of business earlier this year) wrote a detailed report about M2E Power and said that the company’s claims defy the laws of physics. Maybe that was part of the commercialization problem.
The biggest losers are probably the venture firms that backed M2E Power. The company raised $8 million from OVP Venture Partners, @Ventures and Highway 12 Ventures. In his report, Dimitrov called M2E Power’s funding “another example of irresponsible investment decisions amidst the hype of alternative energy.”