Purdue-related startup Wavelogix receives $3M investment from Rhapsody Venture Partners (2024)

Wavelogix sensors communicate to engineers when pavement is strong enough for heavy traffic

WEST LAFAYETTE, Ind. — Wavelogix, a manufacturer of novel, patented concrete strength sensors invented at Purdue University’s College of Engineering, has received $3 million in Series A funding from Cambridge, Massachusetts-based Rhapsody Venture Partners, a venture capital firm that specializes in hard-tech investments.

Luna Lu, Purdue’s Reilly Professor in the Lyles School of Civil Engineering and Wavelogix’s founder, invented the Rebel concrete strength sensors.

“Rhapsody’s investment in Wavelogix shows that our sensors bring immense value to the industry,” she said. “Its funding will allow us to scale manufacturing and enable nationwide deployment of the technology.”

Jason Whaley is a general partner and co-founder of Rhapsody Venture Partners. He is an experienced entrepreneur and startup investor in the hard-tech space. Prior to Rhapsody, Whaley was the co-founder and CEO of Manus Biosynthesis, an industrial biotechnology company.

“Wavelogix’s solution is transformative for concrete construction,” he said. “Short-term, it will allow accelerated project timelines and eliminate costly quality control errors. Beyond this, Wavelogix will enable data-driven decision-making and optimization of concrete mix designs, which will reduce carbon footprints, eliminate waste and lead to more durable structures.”

Lu disclosed the sensor system to the Purdue Innovates Office of Technology Commercialization, which applied for the patent to protect the intellectual property and licensed it to Wavelogix.

Why monitoring concrete matters

According to data from the Federal Highway Administration, concrete pavement makes up less than 2% of U.S. roads but approximately 20% of the U.S. interstate system. Lu’s research has focused on improving the conditions of concrete pavement first because it is the most challenging road material to repair. Concrete interstate pavement also must reliably support a large proportion of the nation’s traffic.

“Traffic jams caused by infrastructure repairs have wasted 4 billion hours and 3 billion gallons of gas on a yearly basis. This is primarily due to insufficient knowledge and understanding of concrete’s strength levels,” Lu said. “For instance, we don’t know when concrete will reach the right strength needed to accommodate traffic loads just after construction. The concrete may go through premature failure, leading to frequent repairing.”

Purdue-related startup Wavelogix receives $3M investment from Rhapsody Venture Partners (1)The Rebel concrete strength sensor from Wavelogix communicates to engineers via a smartphone app exactly when pavement is strong enough to handle heavy traffic. (Photo provided by Wavelogix) Download image

Developing the Rebel concrete strength sensors

Traditional methods used by the construction industry for more than a century call for testing large samples of concrete at a lab or on-site facility. Using that data, engineers estimate the strength level that a particular concrete mix will reach after it’s been poured and left to mature at a construction site. Even though these tests are well understood by the industry, discrepancies between lab and outdoor conditions can lead to inaccurate estimates of the concrete’s strength due to the different cement compositions and temperatures of the surrounding area.

With the Rebel concrete strength sensors, engineers no longer have to rely on samples to estimate when fresh concrete is ready for traffic. They can instead directly monitor the fresh concrete and accurately measure many of its properties at once.

The sensor communicates to engineers via a smartphone app exactly when the pavement is strong enough to handle heavy traffic. The stronger the pavement is before being used by vehicles, the less often it will need to be repaired. The ability to instantly receive information about the concrete’s strength levels also allows roads to open to traffic on time or sooner following a fresh pour.

Construction workers can install Rebel sensors simply by tossing them onto the ground of the concrete formwork and covering them with concrete. Next, they plug the sensor cable into a reusable handheld device that automatically starts logging data. Using the app, workers can receive information on real-time changes in the concrete strength for as long as the data is required.

Wavelogix’s sensor system has already garnered national recognition. In April, Wavelogix received the 2024 Edison Awards gold honor for critical human infrastructure. The sensor was also on Time’s Best Inventions of 2023 list, and Fast Company magazine named this invention one of its Next Big Things in Tech for 2022. The American Society of Civil Engineers’ 2021 Report Card for America’s Infrastructure selected the technology as one of its “Gamechangers” for the year.

In 2022 Wavelogix received a $255,996 Phase I Small Business Innovation Research grant from the National Science Foundation to develop its technology.

About Wavelogix

Wavelogix is a Purdue University spinout that has developed a proprietary Internet of Things sensing and data analytics platform for infrastructure quality testing. Its award-winning sensing technology provides real-time measurements of in-place concrete strength, allowing construction engineers to make accurate, data-driven decisions about materials selection, scheduling, budgets and resource allocation.

About Rhapsody

Rhapsody Venture Partners is a venture firm in Cambridge, Massachusetts, that funds early-stage applied science and engineering companies. Rhapsody’s team works side by side with entrepreneurs to secure anchor customers that reduce time to commercialization and accelerate growth.

About Purdue Innovates Office of Technology Commercialization

The Purdue Innovates Office of Technology Commercialization operates one of the most comprehensive technology transfer programs among leading research universities in the U.S. Services provided by this office support the economic development initiatives of Purdue University and benefit the university’s academic activities through commercializing, licensing and protecting Purdue intellectual property. In fiscal year 2023, the office reported 150 deals finalized with 203 technologies signed, 400 disclosures received and 218 issued U.S. patents. The office is managed by the Purdue Research Foundation, which received the 2019 Innovation & Economic Prosperity Universities Award for Place from the Association of Public and Land-grant Universities. In 2020, IPWatchdog Institute ranked Purdue third nationally in startup creation and in the top 20 for patents. The Purdue Research Foundation is a private, nonprofit foundation created to advance the mission of Purdue University. Contact otcip@prf.org for more information.

About Purdue University

Purdue University is a public research institution demonstrating excellence at scale. Ranked among top 10 public universities and with two colleges in the top four in the United States, Purdue discovers and disseminates knowledge with a quality and at a scale second to none. More than 105,000 students study at Purdue across modalities and locations, including nearly 50,000 in person on the West Lafayette campus. Committed to affordability and accessibility, Purdue’s main campus has frozen tuition 13 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its first comprehensive urban campus in Indianapolis, the new Mitchell E. Daniels, Jr. School of Business, and Purdue Computes — at https://www.purdue.edu/president/strategic-initiatives.

Writer: Steve Martin, sgmartin@prf.org

Media contact: Joe Turek, joe.t@wavelogix.tech

Purdue-related startup Wavelogix receives $3M investment from Rhapsody Venture Partners (2024)

FAQs

What is venture capital start up funding? ›

Venture capital (VC) is a form of private equity and a type of financing for startup companies and small businesses with long-term growth potential. Venture capital generally comes from investors, investment banks, and financial institutions. Venture capital can also be provided as technical or managerial expertise.

What does venture capital do for startups? ›

Venture capital funding encourages entrepreneurs to pursue bold and innovative ideas. By taking risks and investing in startups with disruptive potential, venture capitalists help drive technological advancements, challenge established business models, and spur competition.

How do investors get their money back from startups? ›

If negotiation doesn't work, you can also consider selling your shares back to the company. This could be done through a secondary market transaction or by negotiating a buy-back agreement with the startup's management. Finally, you could also take legal action against the company.

How does venture capital get money? ›

The capital in VC comes from affluent individuals, pension funds, endowments, insurance companies, and other entities that are willing to take higher risks for potentially higher rewards. This form of financing is distinct from traditional bank loans or public markets, focusing instead on long-term growth potential.

Do you have to pay back venture capital funding? ›

Exposure: VC firms often have an extensive network of contacts in the business world, which can help to raise a company's profile and attract potential partners, customers, and employees. No repayment required: Unlike loans, venture capital investments do not require repayment.

Is venture capital good for startups? ›

Venture capital can come with high risks and high rewards for both investors and startups. Startups can secure funding through venture capital without needing to make monthly repayments, but they may need to give up some control over the creativity and management of the company.

What is the difference between a venture and a startup? ›

Another key difference is that startups are often focused on innovation, while corporate ventures are more focused on commercialization. Startups are often trying to solve a problem that no one has solved before, while corporate ventures are trying to take an existing product or service and make it better.

What do venture capitalists get in return? ›

Although the venture capitalist may receive some return through dividends, their primary return on investment comes from capital gain when they eventually sell their shares in the company, typically three to seven years after the investment.

Is venture capital high paying? ›

Annual salary and bonuses differ broadly in this field depending on the size of the VC firm and its specialization. In general, VC associates can expect an annual salary of $60,000 to $133,000. 1 With a bonus, which is typically a percentage of salary, the overall compensation can be much higher.

Do you have to pay back investors if your business fails? ›

If the startup takes off, you'll both reap the financial rewards. If your company falls flat, on the other hand, an angel investor won't expect you to pay back the offered funds. Though you aren't officially obligated to pay back your investor the capital they offer, there is a catch.

Do most startups lose money? ›

One simple word: money. An estimated 38% of startups fail because they run out of cash and fail to raise new, necessary capital.

Can a startup survive without investors? ›

A startup can succeed without an investor, but it will be much harder. The benefits of having an investor are that they can provide the capital necessary to get the business off the ground, they can provide advice and mentorship, and they can help connect startup to their network of contacts.

Why do venture capitalists make so much money? ›

Venture capitalists make money from the carried interest of their investments, as well as management fees. Most VC firms collect about 20% of the profits from the private equity fund, while the rest goes to their limited partners. General partners may also collect an additional 2% fee.

How is venture debt paid back? ›

Most venture debt takes the form of a growth capital term loan. These loans usually have to be repaid within three to four years, but they often start out with a 6- to 12-month interest-only (I/O) period. During the I/O period, the company pays accrued interest, but not principal.

Are Shark Tank venture capitalists? ›

The sharks are venture capitalists, meaning they are "self-made" millionaires and billionaires seeking lucrative business investment opportunities. While they are paid cast members of the show, they do rely on their own wealth in order to invest in the entrepreneurs' products and services.

How much money do you need to start a venture capital fund? ›

Setting up a fund may vary depending on the stage the fund wants to invest in, the sector or industry, and the performance objectives for its portfolio companies. Full-time GPs typically require between $20 MM and $40 MM per head in fund size to cover salaries and expenses, assuming a 2% management fee.

What does venture capital funded mean? ›

A venture capital (VC) fund is a sum of money investors commit for investment in early-stage companies. The investors who supply the fund with money are designated as limited partners.

What is start up funding capital? ›

Startup capital is the funding an entrepreneur secures to cover the initial costs of a business until it becomes profitable. Sources of this capital include venture capitalists, angel investors, and traditional banks.

What is the venture capital funding process? ›

The stages of venture capital are the process that a company goes through in order to receive funding from venture capitalists. Each stage has a different level of risk and reward. The five main stages are pre-seed funding, startup capital, early stage, expansion and later stage.

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