Robotics startup cofounded by Synapse CEO is raising funds with exaggerated claims about GM ties

A humanoid robotics startup cofounded by the CEO of bankrupt fintech steadfast Synapse has canvassed Silicon Valley investors for funds by claiming adjacent ties and an imminent concern from General Motors — claims rejected by the automaker.

The company, called Foundation Robotics Labs, is seeking the past $1 cardinal successful funds for an $11 cardinal effect round, according to documents obtained by CNBC. The capitalist transportation claimed GM had already committed to an investment, on with the Menlo Park-based VC steadfast Tribe Capital.

"Foundation is gathering humanoid robots to instrumentality implicit enactment that humans bash successful factories, warehouses and yet homes," the startup declared.

On apical of the effect investment, the fundraising papers said GM was acceptable to beryllium Foundation's archetypal customer, with a targeted $300 cardinal acquisition order, and had besides provided entree to its factories to assistance them bid its robots.

"GM agreed to fto america cod the crushed information information successful their factories," Foundation said successful the document. "Our squad is successful their Mexico mill this week to commencement the postulation process. We would astir apt beryllium the lone institution successful this abstraction with a dataset similar this."

But, according to GM and 1 of the startup's founders, astir of Foundation's claims related to the automaker are exaggerated oregon untrue.

While GM met with Foundation executives a fewer times, it hasn't allowed information postulation from its factories, has nary agreements for robot orders and isn't readying an investment, according to a GM spokesman.

"GM has ne'er invested successful Foundation Robotics and has nary plans to bash so," spokesperson Darryll Harrison said successful an emailed statement. "In fact, GM has ne'er had an statement of immoderate benignant with the company. Any claims to the contrary are fabricated."

In a telephone interrogation with CNBC, 1 of Foundation's cofounders, Mike LeBlanc, confirmed GM's points and said helium was embarrassed that selling materials existed that overstated their relationship.

"The engineering worldly we've done is truly incredible, and it's the bedrock of what this institution volition be," LeBlanc said. "That, to maine is what Foundation Robotics is."

Foundation was started successful April by Synapse CEO Sankaet Pathak, Tribe Capital CEO Arjun Sethi, and LeBlanc, cofounder of Cobalt Robotics, a shaper of autonomous information guards, according to the company's fundraising pitch.

It's raising wealth astatine a clip erstwhile American corporations look to automate much of their labor: 25% of superior spending by concern companies successful the coming years volition beryllium connected automated systems, according to McKinsey.

The misleading fundraising transportation was shared successful an email radical with astir 1,500 startup executives and investors this month, according to 1 of the recipients. The contents of the papers were confirmed by idiosyncratic with nonstop cognition of Tribe Capital.

Tribe Capital and its cofounder Sethi declined to comment, portion Pathak didn't respond to messages seeking comment.

The robotics startup finds itself successful the spotlight aft the implosion of Pathak's different company, Synapse, which enabled fintech brands similar Mercury and Dave to connection banking services by connecting them to FDIC-backed banks.

Cofounded by Pathak successful 2014, Synapse went bankrupt earlier this twelvemonth aft immoderate of its largest clients, including Mercury, near its level amid disagreements implicit lawsuit balances.

The messiness has near much than 100,000 Americans with a combined $265 cardinal successful deposits locked retired of their accounts for much than a month, according to a trustee appointed to oversee the firm's bankruptcy proceedings.

Making matters worse, determination is an $85 million shortfall betwixt what spouse banks of Synapse are holding and what depositors are owed, and nary answers yet connected what happened to the missing funds, according to the trustee.

Pathak's determination to his adjacent venture, coming connected the heels of the still-ongoing Synapse failure, has raised eyebrows among immoderate founders and investors successful the startup community.