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invested here because there's no way we can validate that technology on our own." In addition to MJSK's individual investors and Intel Capital, Cymbet investors include: -The Ignite Group, a venture firm based in Silicon Valley and Tokyo that focuses on communications and software. - Bekaert, a Belgian technology company focused on metal and advanced materials and coatings. - Dow Venture Capital, which has more than $300 million invested in life science, biotechnology, electronics and elsewhere. - Millennium Materials Technologies Funds, created six years ago to invest in micro-electronics and other emerging industries. - Helmet Business Mentors Oy, a Finnish private-equity investor. Cymbet expects to increase employment at its Elk River facility by only 10 people to a total of 30 employees next year. The company expects to generate about $6 million in 2005 revenue. But a major plant and production expansion is projected in 2006, when Cymbet expects sales of $46 million. By 2008, sales are projected at nearly $250 million, according to the confidential offering statement circulated to prospective investors. In 2003, Jenson raised $4.5 million in an initial round of financing that resulted in the Polar Fab process for commercializing battery technology developed by federal researchers at Oak Ridge Laboratory. The prospectus notes that there are three other licensees of the federal technology, but none is believed to be using what Cymbet says is its novel low-temperature, economical approach. Why was Cymbet started in Elk River? Great town. Also, that's where the entrepreneurial Jenson lives. The Cymbet investment means Minnesota firms could top more than $350 million in venture capital raised in 2004. While that pales next to the $1.07 billion raised during the technology boom year of 2000, it would be one of the best years ever. Moreover, Cymbet represents an interesting departure from the state's traditional venture capital repositories of medical and health care-related companies. And there's evidence that venture investors, badly burned during the technology-company meltdowns of 2001-02, are cycling back into action. Last week, Rick Brimacomb, a partner at Sherpa Partners, an early-stage VC firm that has abandoned plans to launch a second fund on top of its 2001-vintage Sherpa Trak I, bemoaned the lack of interest in early-stage investing. However, Affinity Capital and other veteran Minnesota funds have had some success raising fresh capital from investors, observers pointed out. And Mark Hessen, president of the National Venture Capital Association, said last week that nationally the venture capital fundraising cycle is rebounding and that early-stage companies will be among the beneficiaries. Neal St. Anthony can be reached at 612-673-7144 or nstanthony@startribune.com. LOAD-DATE: December 22, 2004