NanoSteel, a US-based maker of high-strength steel spun out of the Idaho National Environmental and Engineering Laboratory (INEEL), has raised $12m in its series C round from a consortium including US-listed car maker General Motors’ corporate venturing unit.
Jon Lauckner, president of GM Ventures and the car maker’s chief technology officer, said: “Over the next several years, light-weighting of vehicles will be a major focus area to improve fuel economy. NanoSteel’s nano-structured alloys offer unique material characteristics that are not available today, making them a potential game-changer.”
Dave Paratore, executive president of NanoSteel, added: “With the support of General Motors’ automotive expertise and technology leadership, we can accelerate the final phases of development of our nano-structured AHSS [advanced high-strength steel] in the quest to economically lightweight vehicles.”
Alongside GM Ventures as lead investor in the C round were venture capital firms EnerTech Capital and Fairhaven Capital Partners and and five existing investors. NanoSteel’s website lists its previous backers as Chrysalix Energy Venture Capital, Cycad Group, EnerTech Capital, Ervin Industries, Fairhaven Capital Partners, Milcom Technologies and Octane Venture Partners.
NanoSteel was founded in April 2003 with $3m from investment group Milicom Technologies, which also manages the US Army’s OnPoint Technologies venture investment fund, as its first partnership with INEEL before raising $17m in October last year, according to a regulatory filing, which included GM Ventures.
In September 2005, EnerTech Capital and Arsenal Venture Partners invested $4.4m in NanoSteel during Stage 1 of the Series A financing. In Stage 2, another $3.1m was invested in the company. The Series A round was completed in July 2008 with an extra $3.25m of funding from the Cycad Group, EnerTech Capital and Arsenal Venture Partners.
A further $8m was invested in NanoSteel by EnerTech Capital in August 2009.