Severstal invests $6 million into steel startup Arcanum Alloys

October 16, 2019
Accelerating Materials Innovation More...
by Cecilia Gee
Very important

Severstal is one of the first venture groups active in metallurgy, a traditionally mature industry; Arcanum Alloys is on the cusp of success but needs to secure recurring buyers and scale to thrive. While other startups in the space have reached similar points of near-success only to stall, arguably with more backers, Lux expects this partnership to move forward due to a claimed ease of integrating and scaling the technology alongside a clear market fit, despite the conservatism of the industry. The deal is high-risk but high-reward and creates a new push for innovation within steel. It is Severstal's first direct investment after having made two LP investments since it began in May 2018. Khosla Ventures continues to back Arcanum Alloys.

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