Funding in start-ups working on radar fell by 45% and by 21% in lidar, year-on-year; lidar is seen as a crucial part of triple-sensing for redundancy in higher levels of autonomy

UTRECHT, The Netherlands – August 31, 2020 – Disclosed funding in start-ups working on radar, camera, and lidar for automated driving peaked in 2019 at $808.5 million, double the 2018 haul, according to research conducted by FutureBridge. With the slowdown caused by the pandemic, funding dropped over 24% YOY in 1H 2020 to $289.2 million, compared to $382 million in 1H 2019. Lidar funding still dominates, accounting for 98% of the total, up from 85% in 1H 2019, taking over camera’s share.

FutureBridge analyzed the investment and funding disclosures of nearly 300 global start-ups working on Advanced Driver Assistance Systems (ADAS) as well as those developing radar, camera, and lidar systems for ADAS, as part of its latest research, “1H 2020 ADAS & Vision Systems Deep Dive”. In total, 26 start-ups disclosed funding in ADAS sensors in this period, 14 active in lidar, and six each in radar- and camera-based ADAS, respectively.

LIDAR FUNDING DROPPED BUT SAW THE LARGEST TRANSACTION

Four lidar start-ups raised funds in 1H 2020, down from six in 1H 2019. The deal value was also down nearly 13% YOY from 1H 2019 ($325 million). However, Shanghai-based Hesai’s $173 million round in January set a new lidar record, surpassing the $170 million raised by Innoviz in 2019.

RADAR ATTRACTED ONLY $5.8 MILLION IN 1H 2020

Seoul-based Bitsensing was the only radar start-up disclosing funding in the first half of 2020. The company raised $5.8 million to advance its 24 GHz and camera support for real-time lane traffic data. Although funding in radar start-ups has been low in the recent past, the 1H 2020 number is a nearly 45% decline over the same period last year.

ABSENCE OF CAMERA-BASED START-UP FUNDING IN 1H 2020 AFTER RECORD YEAR

Funding for start-ups working on camera technology for ADAS hit a 5-year peak in 2019 with $74.5 million. Camera technology’s start-up fundraising lags that of lidar and radar substantially, with only $121 million in the last 18 months, given the higher level of maturity of camera-based ADAS technology.

According to Georgios Stathousis, FutureBridge’s Mobility Insider Program Manager, “lidar’s popularity among start-up investors underlines the industry consensus that it is a crucial part of triple-sensing for redundancy in higher levels of autonomy.”

“Despite the slowdown, the automotive industry remains committed to the pursuit of technological advancements brought to market by innovative start-ups to make higher autonomy a reality”, says Stathousis.

To learn about FutureBridge’s “1H 2020 ADAS & Vision Systems Deep Dive”, which unveils the most well-funded technologies in the last five years, contact media@futurebridge.com