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Detroit startup Grounded raises $5M to customize electric and gas-powered vans

Created at 18 Aug · 10:26 AM1 source↑ Market-relevant
IN SHORT

Detroit-based Grounded has secured $5 million in seed funding to scale its modular vehicle customization business. The company will focus on adapting both electric and combustion-powered vans for commercial, medical, and public safety sectors.

Key Numbers

$5 millionseed funding raised
2022startup founded
50,000-square-footnew manufacturing facility size

Who's Involved

Grounded
Detroit-based startup customizing vans
Also Capital
Repeat investor in Grounded
The 81 Collection
Early-stage firm and repeat investor
Animal Capital
Investor in Grounded's seed round
Michigan Outdoor Innovation Fund
Investor in Grounded's seed round
Sam Shapiro
Founder and CEO of Grounded
Nadia Meyer
Chief Product Officer at Grounded
Colgate
Commercial customer of Grounded
Nokia
Commercial customer of Grounded
Wayne State University Medical
Medical sector customer of Grounded
Healthy Mothers, Healthy Babies Coalition of Hawaii
Medical sector customer of Grounded
Detroit startup Grounded raises $5M to customize electric and gas-powered vans

↳ Why This Matters

Grounded's successful funding and expansion signal a growing demand for flexible, customized commercial vehicle solutions, adapting to market shifts away from a sole focus on electric vehicles and catering to diverse business needs.

Key facts

  • Detroit startup Grounded has raised $5 million in seed funding.
  • The company customizes vans for commercial, medical, and public safety sectors.
  • Grounded will now adapt both electric and gas-powered vehicles.
  • A new 50,000-square-foot manufacturing facility in Detroit will support scaling production.
  • Key investors include Also Capital, The 81 Collection, and Animal Capital.

Detroit-based Grounded, founded in 2022, has secured $5 million in seed funding to expand its modular vehicle customization business. The startup, initially focused on electric vans for "van life" and later for small businesses, is pivoting to a vehicle-agnostic approach, adapting both electric and combustion-powered vans for a wider range of commercial needs.

The funding round saw participation from repeat investors Also Capital and The 81 Collection, alongside new backers Animal Capital, the Michigan Outdoor Innovation Fund, and "various SpaceX alumni." This capital infusion will support the opening of a new 50,000-square-foot manufacturing facility in Detroit, where production is set to begin this month.

Founder and CEO Sam Shapiro emphasized that Grounded is not solely an electric vehicle company but focuses on creating the "smart, high-tech, modular workspace or living space" on top of a vehicle's chassis. This includes the design, materials, power system, and software that transform vehicles into mobile healthcare units, command centers, camper vans, or coffee shops.

Grounded has already attracted clients across commercial sectors, including Colgate and Nokia, as well as medical institutions like Wayne State University Medical and the Healthy Mothers, Healthy Babies Coalition of Hawaii. The company is also seeing notable growth from food and beverage and public safety customers, according to Chief Product Officer Nadia Meyer.

The strategic shift to include gas-powered vehicles was partly influenced by the discontinuation of GM's BrightDrop and Ford's scaled-back electric Transit plans, as well as broader challenges in the U.S. EV market. This flexibility allows Grounded to cater to customers not yet ready for electric vehicle infrastructure.

Frequently asked questions

Grounded customizes the interior and systems of vans, transforming them into functional mobile spaces for businesses and institutions, regardless of whether the base vehicle is electric or gas-powered.

The company's seed round was backed by Also Capital, The 81 Collection, Animal Capital, the Michigan Outdoor Innovation Fund, and several SpaceX alumni.

The new 50,000-square-foot Detroit facility is for scaling production of their modular vehicle customization platform to meet fleet customer demand.

Grounded serves commercial clients like Colgate and Nokia, medical sectors, veterinary services, and is seeing growth in food and beverage and public safety sectors.

What Happens Next

01Production at the new Detroit facility begins this month.
02Grounded aims to ramp up capacity at the facility next year.

How It Developed

Grounded was founded in 2022 with a focus on customizing electric vans for "van life."
The startup shifted to customizing vans for small businesses.
Grounded announced a $5 million seed funding round on Tuesday.
The funding round included investments from Also Capital, The 81 Collection, Animal Capital, the Michigan Outdoor Innovation Fund, and SpaceX alumni.
Grounded opened a new 50,000-square-foot manufacturing facility in Detroit.
The new facility will allow Grounded to customize electric and combustion-powered vehicles.
Production at the facility begins this month, with capacity increasing next year.
Grounded has secured customers in commercial, medical, and veterinary sectors.

Sources

T1
Detroit startup Grounded raises $5M to customize electric and gas-powered vansTechCrunch

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