Linden Chassistech Secures 30 Million RMB in Pre-Series A Funding, Led by Blue Lake Capital

April 11, 2024

Linden Chassistech (上海琳顿汽车底盘件制造有限公司), an automotive chassis component manufacturer and R&D company, recently announced the completion of a 30 million RMB Pre-Series A funding. The investment was led by Blue Lake Capital, with participation from Gaorong Ventures (高榕创投), eGarden Ventures (毅园资本), and Jun Zhiyan (骏之彦). The funds raised in this round will be primarily utilized to accelerate the industrialization of new products.

Established in July 2023, Linden Chassistech specializes in the design, R&D, and manufacturing of automotive shock absorbers in China, along with finished vehicle matching and tuning. The company was founded by industry experts in the Chinese automotive shock absorber sector, with Dr. Ye Guohong (叶国弘), Co-founder and CEO, being a pioneer in introducing modern shock absorber technology to China and having previously served as the president of ZF China.

Linden is committed to meeting the rigorous safety and comfort requirements of new energy vehicles in the era of electric cars through the development of semi-active and active shock absorbers, along with other critical components. By utilizing fully self-developed automated production lines, Linden realizes high-quality lean manufacturing in line with the principles of Industry 4.0.

Linden’s electronically controlled shock absorber products are automotive chassis components leveraging electronic control technology. These components have the capability to instantly perceive and respond to the vehicle’s performance, traffic conditions, and driver inputs, thereby adjusting the vehicle’s damping effect.

As automotive electrification and intelligent technologies continue to accelerate, there is an increasing demand for personalized and intelligent chassis solutions. The demand for electronically controlled shock absorbers has seen significant growth in the past few years. As the trend of domestic production of vehicle components continues, there is a market potential worth billions of dollars within the domestic market alone.

Linden is currently developing two assembly products: the external single-valve (SV) and the external dual-valve (DV) electronically controlled shock absorber. These products feature Linden’s next-generation electromagnetic valves, which excel in performance data and meet the design requirements for forward development. They are at the forefront of the industry in terms of control precision and product consistency.

According to the Linden team’s projections, starting from 2025, DV electronically controlled shock absorbers will gradually become more prevalent in the Chinese mid-to-high-end vehicle segment. DV systems outperform SV systems, as they have the ability to independently control compression and rebound damping. This allows for more precise damping characteristics, ultimately enhancing the sophistication of wire-controlled chassis control strategies and enabling faster chassis tuning processes.

The DV technology elevates the ride comfort and delivers a more responsive driving experience, particularly for vehicles with increased sprung mass, such as new energy vehicles. Its application marks a significant milestone in the automotive industry’s progression from semi-active to fully active suspension systems, opening up an entirely new avenue in the automotive sector.

Linden’s in-house automation team is currently designing and developing the production lines for electromagnetic valves and shock absorbers. It is projected that both production lines will become operational by the end of June 2024. The first phase of Linden’s fully automated production line is expected to achieve an annual capacity of one million electronically controlled shock absorbers and electromagnetic valves.

The increasing penetration of electric vehicles has raised the requirements for vehicle chassis. Electronically controlled shock absorbers that offer rapid response capabilities and real-time adjustment of driving modes based on traffic conditions have become a crucial necessity for automakers.

Following this round of financing, Linden anticipates accelerating the industrialization of new products and expediting the capacity expansion of shock absorber assembly and electromagnetic valve production lines. The goal is to become a leading domestic and globally recognized player in the automotive shock absorber industry.

“We maintain an enduringly positive outlook on the dynamic growth of the new energy vehicle industry, both within China and across the globe,” said Ray Hu, Founder and Managing Partner of Blue Lake Capital. “We are also thrilled to invest in a truly exceptional startup like Linden. With the founding team’s extensive industry experience and excellent product design and manufacturing capabilities, we believe that the company is poised to emerge as another outstanding player in the automotive core components sector.”

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