An electric RV startup is betting on a place for manufacturing in Detroit's burgeoning tech industry. Corktown-based Grounded recently closed its first pre-seed funding round totaling $3.5 million. The round was led by Chicago-based firm The 81 Collection and New York-based Also Capital, with contributions from San Francisco-based Side Door Ventures, as well as Michigan Rise and the Michigan Outdoor Innovation Fund. Tony Lyscio, a SpaceX STARLINK development manager, and tristan walker, of Atlanta-headquartered health startup Walker & Company Brands, Inc., also contributed. Pre-seed funding is typically the first major funding round a startup completes when founders are developing a prototype. It usually rakes in between $500,000 and $1 million — a fraction of what Grounded raised. Grounded founder and CEO Sam Shapiro said he’s faced difficulties fundraising as a hardware startup, but Grounded’s pre-seed round of $3.5 million shows there are investors that still value hardware-focused companies, especially in a Detroit market that's saturated with software-as-a-service startups. "(We need to) encourage the Detroit investor ecosystem to invest in more hardware and physical businesses,” Shapiro said. “I think hardware businesses have the biggest opportunity to have a large impact societally, looking forward to the next decade." "The world is becoming smaller, more mobile, and more flexible," said Alex Kirshenbaum, co-founder of The 81 Collection, in a news release. “We see a future where businesses evolve to get closer to customers, and Grounded makes that a reality." Grounded was the first startup to take up residence at Newlab, the tech hub affiliated with Michigan Central. It moved into the building in October 2022, months before it opened to the public. Shapiro, an Atlanta native, worked as a SpaceX engineer and a TripleLift product leader before moving to Detroit to start his first company Shapiro had been eyeing the emerging startup ecosystem in Austin to build Grounded, he told Crain's in April, but ultimately chose Detroit for its rich history in hardware and manufacturing. Read more from Anna Fifelski: https://lnkd.in/gpReSrKj
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2moIsnt that brightdrop turned into an rv?!