Boulder-based Cocona raising $5M in venture capital

BOULDER — Cocona Inc., a retail technology company that leases its intellectual property to companies such as Tommy Bahama, Adidas and Carhart, is raising $5 million in venture capital.

Cocona specializes in its 37.5 technology — a process that removes moisture from clothing in a way that keeps the body at its ideal temperature of 37.5 degrees Celsius.

The company has raised nearly $3.8 million so far, according to a Form D filed with the  Securities and Exchange Commission on May 31. Chief executive Jeff Bowman said the company has raised $5 million and will file a form for the remaining $1.2 million shortly.

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Bowman said the funds will be going to working capital, so the company can continue its growth.

“We’ve been cash positive for the first time this year,” he told BizWest. “We could limp along, but we can’t grow unless we have more money. This funding is less for day-to-day and more to expand our business.”

In addition to keeping the body cool, Cocona’s 37.5 technology helps clothing, bedding, towels and other fabric dry more quickly and eliminate odor.

“The way our tech works is we take activated particles, like carbon, and fuse them directly into the yarn during spinning so it’s embedded in it,” he said. “The yarn then has a higher surface area, so it dries quickly and moisture evaporates quicker. When the hospitality industry, like hotels, use our towels, the energy cost is 30 percent less because they’re able to dry quicker.”