From Garage to Glory: How Salient Motion Defied Odds Against Anduril's Palmer Luckey and Secured $12 Million in Funding
Techcrunch•2 weeks ago•
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From Garage to Glory: How Salient Motion Defied Odds Against Anduril's Palmer Luckey and Secured $12 Million in Funding

startups
entrepreneurship
aerospace
funding
defense

Summary:

  • Salient Motion was founded by ex-Anduril engineers in a garage, aiming to revolutionize the airplane parts industry.

  • Anduril's Palmer Luckey sued Salient Motion, accusing them of stealing intellectual property.

  • Despite legal challenges, Salient Motion raised $12 million in funding, led by Cantos Ventures and a16z.

  • The startup aims to reduce the production timeline for FAA-certified parts from two years to under six months.

  • Salient Motion plans to expand its team and build a new factory to enhance production capabilities.

The Birth of Salient Motion

Two years ago, Vishaal Mali, Kai Yin, and Aiden Jenkins transitioned from their engineering roles at Anduril to launch Salient Motion from a modest two-car garage. They dedicated 15 hours a day to crafting defense tech, utilizing a propane tank heater for warmth while engaging with potential investors, including Katherine Boyle from Andreessen Horowitz (a16z). This journey epitomized the chaotic yet promising essence of early startups.

Challenging the Status Quo

Their mission? To disrupt the bespoke airplane part industry by innovating thousands of software-driven airplane parts for faster and more cost-effective production. By May 2023, Salient Motion had gained traction and moved into a traditional office space.

The Legal Battle with Anduril

However, the situation took a turn when Palmer Luckey, Anduril's billionaire co-founder, vowed to show “no mercy” towards the fledgling startup. In September 2023, Anduril filed a lawsuit against Salient Motion, alleging that the founders had stolen code for their operation. The lawsuit included accusations of sneaking investor meetings at Anduril and suggested that Mali had “poor prospects” for promotion. Salient Motion responded by countersuing, denying any wrongdoing.

Settlement and Funding Success

By July, the lawsuits were settled, and by September, Salient Motion successfully closed a $4 million seed round, bringing total funding to $12 million. This round was led by Cantos Ventures with participation from a16z, AE Ventures, Hummingbird Ventures, and BoxGroup. Despite the turmoil, the company managed to maintain positive momentum.

Insights Into Aerospace Industry Challenges

Mali's experience at Anduril revealed the monopolistic nature of aircraft manufacturing, where parts are often sourced from a single manufacturer, resulting in inflated prices. He highlighted a shocking example of a $90,000 bag of metal tubes and a $52,000 trash can used in airplanes.

Innovative Approach to Part Production

Salient Motion aims to reuse code from various specialized parts, significantly reducing the time and cost of producing FAA-certified designs. For instance, they found that components like a lavatory pump and a business class seat recliner share 70% of the same software. This innovative approach allows them to cut down production time from two years to less than six months.

Future Growth and Plans

With new funding, the company plans to expand from 12 to 20 employees and build a factory in Torrance, California. They have already secured a major partnership with an unnamed aircraft manufacturer and aim to achieve FAA certification for their first designed part next year. Regarding potential future collaborations with Anduril, Mali stated, “It truly depends on our roadmap as a company.”

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