Why this LA-based VC firm was an early investor in Slate Auto

Slate Auto recently emerged from stealth mode, unveiling an impressively affordable customizable electric truck. The startup has secured an impressive $700 million in funding thus far, including a noteworthy Series A round exceeding $100 million raised in 2023. While Jeff Bezos participated in this funding round, he was part of a larger group of 16 investors, as indicated by a regulatory filing with the Securities and Exchange Commission. Among those investors is Slauson & Co., a Los Angeles-based venture capital firm that has been operating for five years. Partner Ajay Relan shared insights into the firm’s decision to invest in Slate Auto during an exclusive interview with TechCrunch. Relan acknowledged the challenges facing many EV startups, especially in light of recent bankruptcies and regulatory hurdles from the previous administration regarding green energy initiatives. Nevertheless, he and partner Austin Clements are optimistic about Slate’s mission to produce “more affordable, reliable, and customizable vehicles that are manufactured domestically.” Founded in 2020, Slauson & Co. aims to bridge the gap between underrepresented communities and the innovation economy. Relan and Clements, childhood friends who grew up in South Central Los Angeles, are passionate about amplifying perspectives that have historically been marginalized in tech and venture capital. Their connection to Slate Auto originated through Jeff Wilkie, the former CEO of Amazon's consumer division, who co-founded Re:Build Manufacturing, the incubator from which Slate was spun off. After being introduced to the project in 2023, Relan found himself increasingly drawn to Slate’s vision of creating accessible vehicles. The startup’s leadership team, including CEO Chris Barman, who boasts over two decades of experience at Chrysler, further solidified their confidence. “Barman has a great vision and a stellar reputation,” Clements remarked. “She’s focused on delivering rather than just creating hype.” Relan and Clements emphasized the importance of understanding market demands in their investment strategy. They recognized a significant gap in the market for affordable vehicles, especially for younger consumers. Though Slate’s truck is not expected to reach the market until late 2026, the startup has already received validation through more than 100,000 refundable reservations within the first two weeks of availability. The backing from high-profile investors, including Bezos and Los Angeles Dodgers owner Mark Walter, has bolstered Slate’s financial position as it embarks on a Series C funding round. Slauson & Co. also participated in the Series B funding but opted not to disclose the total amount invested. Relan and Clements are confident that their investment will yield significant returns, even in the competitive and low-margin automotive sector. “We need to be convinced that our investments can drive tangible returns,” Clements noted with a smile. “After all, we’re not just a philanthropic organization.”