The auto parts company Speedway Automotive recently announced it will spend $4 million in an initial round of funding to bring the $5 million it received from the California-based startup to life.
The round, led by the private equity firm Greylock Partners, also includes $2 million from the Silicon Valley venture firm Kleiner Perkins Caufield & Byers.
It also includes additional funding from Greylocks venture partner Chris Hughes.
Speedway CEO Paul Bortel told VentureBeat the investment gives the company a chance to grow its business and expand its operations to other countries.
It will also give the company an advantage in attracting the best talent, he said.
The company’s stock, which rose about 20% after the announcement, has gained $9.70 this year.
Bortels team, which includes former executives from GM, Ford and other automakers, have been involved in more than 1,000 investments in the auto industry, according to Bloomberg.
The deal comes as other auto-parts makers are ramping up production in response to a flood of orders from customers who want their vehicles to look new and improved.
Batteries are one area where companies are trying to make it easier to switch from batteries to more efficient and smaller vehicles.