TELO
Our Investment in TELO
Lightweight, compact pickups for urban fleets and adventurers
If you haven’t noticed, pickup trucks in the USA today are huge. This isn’t just an observed phenomenon; the U.S. pickup truck market has indeed shifted toward larger vehicles, a trend driven by EPA regulations implemented since 2010 that linked fuel efficiency to vehicle weight. An unintended consequence of these regulations has been increased truck sizes, with manufacturers frequently opting to follow this tack rather than focus on improving fuel efficiency. For example, the best-selling vehicle in the U.S. in 2023, and for the past 42 years, has been the Ford F-Series, which includes the F-150 and its larger counterparts. This model continues to dominate the market. While its design and bed capacity have evolved, one thing is abundantly clear; the Ford F-150 models have become bigger and heavier. But while large trucks remain popular in the U.S., they are often impractical for many commercial and consumer applications, especially in dense urban settings.
The evolution of the Ford F-150 from 1975 to 2023. Source: Axios
At the same time, the automotive industry is undergoing a major transformation towards electrification. Electric vehicles (EVs) offer numerous benefits, including better performance, improved fuel economy, and reduced environmental impact. The International Energy Agency's Global EV Outlook reported a 40% increase in new EV registrations in 2023, totaling 1.4 million vehicles. We believe this growing demand extends beyond electric cars, with individual buyers and fleet customers alike increasingly seeking electric solutions offering greater capacity and utility.
Despite several legacy OEMs introducing electric pickup options, their focus has primarily been on producing EVs that match the size and performance of traditional ICE trucks. As a result, the large size of these EV trucks often creates a barrier for use in urban environments. This situation creates a significant market gap for smaller, electric trucks that can easily navigate tight spaces while offering the utility and performance expected from a pickup.
TELO Trucks aims to address this gap by developing lightweight, compact electric pickups designed for urban adventures. We are thrilled to announce MCJ's investment in TELO's Seed round, led by Neo, with additional investment from Spero Ventures and multiple prominent angel investors in the space. We believe TELO Trucks is poised to redefine the future of urban mobility with its groundbreaking electric pickups, and we are excited to support Jason Marks, Forrest North, and Yves Béhar in this journey.
What is TELO?
The TELO Truck is redefining the footprint and function of electric mobility. A mini-truck with purpose, the TELO Truck combines the compact size of a two-door MINI Cooper with the utility of a Toyota Tacoma. Founded in 2022 and headquartered in San Carlos, CA, TELO is representative of a different era of EV companies. The vehicle - which is intelligently constructed and cleverly configured to fit all your people, pets, and gear, includes a 5-seat cabin with a full 5-foot truck bed, a configurable mid-partition that allows for additional seating for up to eight passengers, and a fast-charge battery allows charging from 20-80 percent in twenty minutes while also enabling drivers to travel 350 miles in range before a recharge is needed. The team has redesigned what an electric truck looks like by taking advantage of the best in electric and autonomous tech, using advanced driving and safety technologies.
With a strong emphasis on advanced safety features and innovative battery design, we are convinced that TELO is well-positioned to capture a unique segment in the EV market. Its trucks are not only visually appealing, but the product design also meets the needs of many commercial fleets in dense urban settings. For example, TELO’s compact pickups can easily navigate tight alleys and underground parking structures for municipal waste companies, as well as effortlessly maneuver busy city streets for construction teams.
Why did we invest?
Compelling Founder-Market Fit
The founding TELO team combines an extensive history in automotive safety, autonomous vehicles, battery design, EV engineering and industrial design. We are confident that the skills and discipline co-founders Jason Marks, Forrest North and Yves Béhar bring to the table will be pivotal for developing a competitive product.
Jason Marks, the company's CEO, built his first two vehicles from scratch in high school. He later developed test systems for the first radar and LiDAR semiconductor wafers and created testing procedures for numerous safety systems used in the initial electric pickup trucks. With a long history of navigating regulatory and safety challenges in the automotive industry, Jason has a proven track record of innovation. During his tenure as Chief Development Manager at National Instruments, he also led the Autonomous Vehicles and Driver Assistance Systems test programs. Jason holds a BS in Mechanical Engineering from Columbia University.
Forrest North, TELO’s CTO, was part of the Stanford Solar Car Project Team, which was key to the inception of Tesla. He was instrumental in developing the battery packs for Tesla's first Roadsters. Forrest also founded Mission Motors, an electric motorcycle company, and subsequently developed and sold PlugShare, the top app for locating vehicle charging stations. He’s an experienced entrepreneur with over 15 patents in electric vehicle batteries and charging. Forrest holds a Bachelor’s in Urban Studies and Product Design from Stanford.
Yves Béhar, TELO’S Chief Creative Officer, founded Fuseproject in 1999, an award-winning, international multidisciplinary design studio. He has worked with brands like Herman Miller, MINI, Samsung, L’Oreal, Puma, SodaStream and Prada and has also co-founded startups including August Home, Canopy Space and Forme Life. Béhar’s works are included in permanent museum collections worldwide, and he speaks frequently on topics including design, technology and sustainability.
Smart Scaling and Superior Safety
Bringing an automotive product from ideation to market has historically been challenging, especially in areas with established competition. However, we believe TELO’s approach of using off-the-shelf parts, domestic contract manufacturing, and virtual validation enhances the company’s ability to scale quickly and supply its niche customers with safe, affordable vehicles.
By leveraging off-the-shelf components, TELO can focus its innovation efforts where it matters most, such as in battery pack design and crash safety features. Rather than aiming for mass production of 50,000 vehicles, TELO’s strategy involves working with domestic contract manufacturers to produce on a much smaller, more flexible scale. This approach extends to the design and prototyping phase, where virtual validation techniques streamline the process.
TELO’s nimble and cost-effective manufacturing strategy showcases that they are representative of a different era of EV start-ups and positions the company to rapidly meet market demands while also maintaining high standards of innovation and safety. Employing cutting-edge safety technologies, including sensors that anticipate and identify potential collisions, as well as state-of-the-art airbags and structural improvements, it’s evident that TELO prioritizes the safety of its vehicles for both occupants and vulnerable road users, such as pedestrians and cyclists.
The company’s scalable approach allows TELO to respond to evolving market needs quickly, ensuring sustainable growth as it expands its footprint in the EV industry. By leveraging these strategic advantages, we believe TELO is well-equipped to capture a significant share of a missing segment in the pickup truck market, driving both near-term success and long-term impact.
