Backed by $38 million from leading venture capital firms Kleiner Perkins, Google (News - Alert) Ventures, Foundation Capital, and Lux Capital, startup Transphorm, Inc., has emerged from stealth mode to redefine power conversion efficiency.

The young company is leveraging advances in modern materials like gallium nitride (GaN) to create ultra-efficient and cost-competitive power modules that promise to significantly eliminate power conversion losses in applications ranging from HVACs to electric vehicles and servers to solar panels. In essence, Transphorm’s mission is to enables substantial energy savings across the grid. It claims that it’s ultra-efficient power modules will eliminate up to 90 percent of all electric conversion losses

 At a private event organized by Google Ventures, the company announced completing a $20 million Series C financing led by Google Ventures, with participation from existing venture investors Kleiner Perkins Caufield & Byers, Foundation Capital and Lux Capital. This brings the total capital raised from all rounds to $38 million.

In a statement, said Umesh Mishra, CEO of Transphorm, “We founded Transphorm to re-imagine what enhanced efficiency in the generation and use of electrical energy can do for our economy.” He added, “Why put up with needless energy waste in every electrical system and device, when we can quickly and cost-effectively design products that are inherently energy efficient? Transphorm’s next-generation power modules cut waste, increase efficiency, reduce system size and simplify overall product design.”

 Similarly, commented Primit Parikh, president of Transphorm, “Since we deliver a complete solution from the original materials through to the final modules, we are in a position to rapidly innovate and deliver product in quick response to demand. We look forward to helping our partners open a new era in ultra-efficient and compact power conversion.”

 Founded by the experienced entrepreneurial team of Umesh Mishra and Primit Parikh, Transphorm boasts world-class engineers as well as top business and manufacturing executives who will guide the commercialization of Transphorm’s technology.

“Solving the enormous problem of power waste will create immediate, long-term shared value for Transphorm’s customers and investors,” stated Randy Komisar, partner, Kleiner Perkins Caufield & Byers, in another company statement. “It was imperative for our firm to get behind Transphorm because it is the first company with a viable, commercial-scale solution to energy losses associated with high-voltage power conversion,” asserted Komisar.

Transphorm has designed custom power modules that are easy to embed in virtually any electrical system, from consumer electronics products, to industrial motor drives, to inverters for solar panels and electric vehicles, according to the maker. The company will unveil its first product at the upcoming APEC conference, taking place in Fort Worth, Texas from Mar. 6 to 10.