Virgin fund invests in U.S. driver safety start-up

By Anupreeta Das

SAN FRANCISCO, Jan 30 (Reuters) - British billionaire Richard Branson's Virgin Group [VA.UL] led a $14.5 million investment round in a start-up that helps people drive more safely and reduce fuel usage.

GreenRoad Technologies, a five-year-old company based in Redwood Shores, California, has funding from previous venture capital backers Benchmark Capital and Balderton Capital as well as the Virgin Green Fund.

Branson started that fund in 2006 with $400 million intended for investments in renewable energy and other so-called "cleantech" companies.

So far, Virgin has invested in only a few renewable energy companies, according to its Web site, including ethanol manufacturer Cilion, formed by Khosla Ventures and Western Milling.

GreenRoad's technology includes a small dashboard-mounted display with green, red and yellow lights to cue drivers, Chief Executive Dan Steere said. If a driver makes an aggressive turn, for example, the red light flashes as a warning. Drivers can use a computer to get more detailed feedback about their driving habits.

Users of this technology have reduced accidents by an average of 54 percent, cut accident costs by about 65 percent and lowered carbon emissions by 7 percent, the company said.

The company, which launched commercially last year, sells its service to "more than a dozen" U.S. companies that use bus or car fleets, said Steere. It costs a company $1,000 per installation for a three-year subscription, he said.

"By deploying GreenRoad through their fleets, companies can play an important role in reducing fuel consumption, lowering harmful emissions and fostering safe driving habits," Branson said in a statement. (Editing by Braden Reddall)