GM Ventures Leads $12M Series C Round for NanoSteel
GM Ventures, the Detroit-based venture fund run by General Motors, announced it has made an investment in Providence, RI-based NanoSteel. David Paratore, CEO of NanoSteel, says GM Ventures was “one of the largest investors” in a $12 million Series C round, which also included investment from EnerTech Capital and Fairhaven Capital Partners.
“GM brings to us not just the name, and not just the dollars, but also its direct market expertise,” Paratore says. “We couldn’t ask for a better partner.”
Dan Flores, spokesman for GM Ventures, calls NanoSteel’s light-weight steel alloy technology “extremely promising.” The key to NanoSteel’s technology, Paratore explains, is that by changing the steel’s micro- and nanostructure, the alloy is lighter, stronger, and still easily shaped. (For a series of videos explaining the technology, click here.)
As light-weighting and fuel economy remain at the top of automakers’ lists, the investment in NanoSteel seems like a natural step for GM. Paratore says the technology is 18 years in the making and is currently being tested in two production trials. He hopes testing with GM and other auto companies can begin by the end of the year.