VanDyne SuperTurbo Inc., a Fort Collins-based company developing fuel-efficient engine turbochargers, has raised $8 million in financing.

The round was led by Northwater Capital's Intellectual Property Fund with participation by existing investors.

The money, VanDyne said, will help drive its growth initiatives and speed up the commercialization of its technology.

"Thanks to Northwater we are going to be able to take the SuperTurbo from a prototype to a product in the next two years," said Ed VanDyne, founder and CEO of the company.

"This round of funding will allow the company to put the SuperTurbo through the rigorous durability testing required by the automotive industry."

The company's technology integrates the functions of supercharging and turbocharging into a single device, by combining turbomachinery with a transmission. The SuperTurbo promises to deliver up to 6 percent efficiency gains in trucks. It also can make a half-size engine deliver the same torque as a normal engine today. Using a smaller engine with a SuperTurbo in a car will give it 36 percent better mileage, according to the company.

VanDyne recently said it is planning to move out of Fort Collins because it can get a better rate elsewhere on energy it wants to sell back to the city utility. To read more, go to "VanDyne leaving FoCo for 'greener' pastures."