Slate Auto: Why This LA VC Firm Invested Early

Slate Auto Secures $700 Million in Funding

Slate Auto, a company specializing in customizable electric trucks, has successfully raised $700 million in funding since emerging from stealth mode earlier this year.

Prior to its public debut, the EV startup completed a Series A funding round exceeding $100 million in 2023. This round included participation from Jeff Bezos, alongside a total of 16 investors, as initially reported by TechCrunch.

Slauson & Co.’s Investment Rationale

Slauson & Co., a Los Angeles-based venture firm established five years ago, is among the Series A investors openly discussing their decision to support Slate Auto.

Ajay Relan, a partner at Slauson & Co., acknowledged the recent bankruptcies within the EV startup landscape and potential challenges stemming from policies impacting green energy initiatives. However, he expressed his firm’s confidence in Slate’s core objective.

Relan stated that he and Austin Clements, his partner, believe in the company’s commitment to delivering “more affordable, reliable, and customizable vehicles that are domestically manufactured.”

The Origins of Slauson & Co.

Founded in 2020 by Relan and Clements, Slauson & Co. draws its name from Slauson Avenue in South Central Los Angeles, an area not traditionally recognized for its technological innovation.

Relan noted that the area serves as a significant source of cultural influence, often disseminated to other regions globally. Slauson & Co.’s mission centers on bridging the gap between these worlds by investing in and empowering individuals whose perspectives have historically been underrepresented in the innovation sector.

Connection to Re:Build Manufacturing

Slauson & Co.’s interest in Slate Auto was sparked through Jeff Wilke, the former CEO of Amazon’s consumer division and co-founder of Re:Build Manufacturing, the incubator from which Slate originated.

Wilke, a pre-existing contact of Relan, introduced the firm to the confidential project in 2023.

A Strategic Investment

Relan conceded that investing in an EV startup represents a slight departure from his firm’s usual investment focus. Nevertheless, the team was drawn to Slate’s ambition to create a more accessible and affordable vehicle.

His conviction solidified after Wilke facilitated an introduction to the Slate leadership team.

Experienced Leadership at Slate Auto

In early 2023, Slate Auto comprised a team of only a few dozen individuals. However, these individuals collectively possessed extensive experience within the automotive industry.

Chris Barman, Slate’s CEO, contributed over 20 years to Chrysler, overseeing vehicle line programs, leading Android Automotive integration, and collaborating with Waymo. Rodney Copes, Chairman, and Ryan Green, CFO, both have backgrounds at Harley-Davidson and Rivian.

Barman’s vision and track record particularly resonated with the Slauson & Co. partners.

“She has great vision and a strong reputation from her previous work,” Clements commented. “She prioritizes execution over hype and is focused on delivering results.”

The Importance of Intuition

Clements emphasized that Slauson & Co. also places significant value on intuition when evaluating early-stage investment opportunities.

“We assess whether the concept aligns with current consumer needs,” he explained. “The lack of affordable vehicle options, especially for younger demographics, and the disparity between affordability and availability seemed illogical.”

Strong Early Demand

Despite its anticipated market entry in late 2026, Slate Auto has already demonstrated significant consumer interest, securing over 100,000 refundable reservations within just two weeks.

Impressive Backer Portfolio

Beyond Bezos’ initial investment, Slate Auto has attracted substantial funding from prominent figures such as Los Angeles Dodgers owner Mark Walter and venture capital firm General Catalyst. Relan described these additional backers as “icing on the cake.”

These investments have brought Slate’s total funding to approximately $700 million, and the company has already initiated a Series C funding round.

Slauson & Co. also participated in the Series B funding round, though the firm has not disclosed the specific amount of its investment in Slate to date.

Potential for Return

This combination of a skilled team, strong financial backing, and a focus on an underserved market segment has led Relan and Clements to believe their investment can yield substantial returns, even within the traditionally low-margin automotive industry.

“We need to have strong confidence in the potential for real returns,” Clements stated, adding with a smile, “We’re not solely a philanthropic organization.”