Carbice is a company that protects electronics like high-performance GPUs from heat, setting the new standard for thermal interface solutions. Pulse 2.0 interviewed Carbice CFO Harold Covert to learn more about the company.
"I am Carbice's first CFO. Carbice is an Atlanta, Georgia-based technology company that develops vertically-aligned carbon nanotube pads for interfaces, to protect the performance of semiconductors and electrical components from heat and stress in any physical environment."
"Prior to Carbice, I spent over 30 years, mostly in Silicon Valley, in finance leadership roles across both public and private companies in technology sectors, including CFO positions at companies like Silicon Graphics, Extreme Networks, and Silicon Image. My experience includes driving revenue growth, overseeing M&A, and leading operational transformations. I've also worked with companies like Imagine Communications to expand EBITDA and right-size operations. Additionally, I have served on seven public company boards and am currently on the board of Lumentum Holdings. I am a CPA, CGMA, and have a B.S. in accounting, and an MBA."
Joining The Carbice Team
What about Carbice had enticed you to join the team? What are your main roles, responsibilities, and goals for the company? Covert shared:
"I was drawn to Carbice because of its cutting-edge carbon nanotube technology and its potential to transform critical sectors like automotive, data centers, energy suppliers, consumer electronics, aerospace and defense, and more. The company is entering a significant growth phase, and I saw an opportunity to help scale its operations globally. As CFO, my role is to lead financial strategy, financial planning & analysis, operational planning, and ensure financial discipline across Carbice. I'm also focused on capital raising and building relationships with partners to support Carbice's expansion. My goal is to drive profitable growth and operational efficiency as we scale."
Formation Of Carbice
How did the idea for Carbice come together, and how did the company start? Covert shared:
"Carbice was founded to tackle critical challenges in thermal management for electronics. Dr. Baratunde Cola, the CEO and Founder, recognized that traditional thermal interface materials (TIMs) fell short in meeting the demands of modern applications like electric vehicles and high-performance computing."
"Leveraging his expertise in carbon nanotube (CNT) technology, Dr. Cola aimed to develop innovative, scalable, and cost-effective thermal management solutions. Over time, Carbice emerged as a leader in CNT-based TIMs, offering advanced products that effectively manage heat."
Core Products
What are the company's core products and features? Can you share some use cases? Covert explained:
"Carbice's core product is its scalable, vertically aligned carbon nanotube thermal pads, designed to protect semiconductors and electrical components from overheating in any environment. These pads are known for their reliability, lasting longer and performing better over time, even in harsh conditions. They are sustainably manufactured from recycled aluminum and carbon nanotubes, making them environmentally friendly. Additionally, Carbice provides high-performing thermal protection that is cost-effective and easy to use."
"One use case for Carbice's thermal pads is in the automotive industry, where we help protect electric vehicle batteries and power inverters from overheating. These scalable and affordable interface solutions ensure optimal performance and provide longevity in critical automotive systems. We recently partnered with Dow to provide a multi-generational thermal interface material (TIM) product for mobility. This collaboration combines Dow's decades-long legacy in silicones with Carbice's patented CNT technology to offer novel thermal management products to meet the rising demand for reliability in the expanding thermal interface market with innovative pad solutions for electric vehicles and other electronics applications."
"Another use case is in the aerospace & defense sector, where our thermal pads are used to dissipate heat in satellites. These pads protect satellites from extreme temperature variations, ensuring they function reliably in space. Carbice is protecting over 28 satellites from overheating today."
Has Carbice faced any challenges in your work sector? Covert acknowledged:
"We've faced challenges, particularly around the misconception that carbon nanotube technology is expensive and unscalable. However, our partnership with Dow is changing that narrative. Legacy companies like Dow are turning to us because traditional thermal management solutions just can't keep up with today's technology demands."
"Carbice is proving that carbon nanotube technology for thermal management is readily available, easy to use and cost-effective. Our interface solution easily integrates into existing processes to enhance performance and longevity without breaking the bank, and our collaboration with industry giants like Dow is proof of how essential our thermal interface solutions are for the future of electronics."
Evolution Of The Company's Technology
How has the company's technology evolved since partnering with Dow? What does this mean for the sector/industry? Covert noted:
"Since partnering with Dow, Carbice's technology is evolving to leverage the combined strengths of Dow's silicone expertise and our patented carbon nanotube (CNT) technology. This collaboration allows us to develop innovative thermal management solutions tailored for high-performing electronics, particularly in e-mobility and semiconductor applications. By integrating our high-performance CNT solutions with Dow's liquid silicones, we can offer more durable and cost-effective thermal interface materials (TIMs) that enhance the reliability of electronics across various operating environments. We have already introduced two new products together with Dow in record time that we are very excited about. This partnership signifies a pivotal shift in the sector, as it sets new benchmarks for performance and reliability, addressing the rising demand for effective thermal management in increasingly complex electronic systems."
Significant Milestones
What other significant milestones has the company achieved? Covert cited:
"With our competitive customer value proposition, large and growing addressed markets, world class financial performance model, and experienced management team, we are in the process of raising capital to expand our market coverage."
"We have achieved customer proof points in the aerospace and defense market and are working closely with customers in the data center and networking addressed markets to win their business."
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Covert assessed:
"We are addressing the following multi-billion dollar and growing markets: consumer electronics, aerospace and defense, data center, and energy systems. Dow is working with us in addressing these markets and, in particular, the automotive market. The amount of interface materials, of all types, sold annually is well over $100B and growing fast, so the large-scale manufacturing we are putting in place at Carbice will ultimately serve many end uses."
Differentiation From The Competition
What differentiates the company from its competition or traditional solutions? Covert affirmed:
"Carbice sets itself apart from traditional thermal management solutions by offering an interface solution that is sustainably manufactured, reliable, and easy to use. While conventional materials often provide painful trade-offs, Carbice's carbon nanotube technology delivers both high thermal conductivity and low resistance. This unique combination allows us to effectively combat increasing power demands and prevent overheating and system failure. By prioritizing affordability and customizable solutions, Carbice enhances system performance while also extending the lifespan of electronic components - this is something you won't find anywhere else in the market."
Future Company Goals
What are some of the future company goals? Covert concluded: