Detroit's newest venture capital firm is starting to flex its muscles, investing millions of dollars in one of Ann Arbor's more promising startups.
GM Ventures, the venture capital arm of
General Motors, is leading a $4.2 million investment round in Sakti3, a University of Michigan spin-off specializing in lithium ion battery technology. The downtown-based VC firm is investing $3.2 million with Japan-based Itochu Technology Ventures contributing another $1 million.
"It's a big deal for a company like us," says Ann Marie Sastry, CEO and co-founder of downtown Ann Arbor-based
Sakti3. She adds that receiving investment and expertise from a regional mega player like GM gives her firm an inside track when it comes to this sort of automotive technology development.
"For us it's a home field advantage," Sastry says.
This is the first public investment for GM Ventures. The automaker created the subsidiary in June with $100 million. GM Venture is designed to help its parent company identify and develop innovative technologies in the automotive/transportation sector. It is currently exploring equity investments in a number of auto-related technologies and business models.
GM Ventures isn't the only local venture capital firm taking stake in Sakti3. Farmington Hills-based
Beringea, Michigan's largest venture capital firm, made an investment in Sakti3 earlier this year. Both companies see the Sakti3's technology as an energy efficiency investment because the 3-year-old firm's technology has the potential to provide a significant step forward in the electrification of the automobile.
Source: Ann Marie Sastry, CEO and co-founder of Sakti3
Writer: Jon Zemke
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