Teradar Secures $150M for Sensor That Outperforms Lidar and Radar

Boston-based startup Teradar has successfully secured $150 million in a Series B funding round, a major vote of confidence for its groundbreaking solid-state sensor technology. The company’s sensor operates in the terahertz band of the electromagnetic spectrum, combining the resilience of radar with the high-resolution imaging typically associated with lidar. This innovation promises long-range, detailed environmental perception even in challenging weather conditions like rain or fog, all at a price point that could make it accessible for mass-market automotive applications.

Matt Carey, Teradar’s co-founder and CEO, actually welcomes skepticism about his company’s claims. He finds that initial disbelief often sets the stage for a powerful demonstration. At events such as the Consumer Electronics Show in Las Vegas, Carey has personally showcased early sensor prototypes to representatives from leading automakers. Watching the device interpret complex scenes in real-time has been a convincing experience for many observers. Carey notes that securing investment typically involves extensive hands-on demos where potential backers actively try to find flaws in the technology.

The recent funding was led by a notable group of investors, including Capricorn Investment Group, Lockheed Martin’s venture arm, IBEX Investors, and VXI Capital. This financial backing will help accelerate Teradar’s mission to integrate its sensors into production vehicles. The company is already engaged in validation projects with five major automakers from the U.S. and Europe, and it aims to secure a contract for a 2028-model year vehicle. To support volume manufacturing, Teradar is also collaborating with three Tier 1 automotive suppliers.

In the automotive sector, the immediate objective is to use these sensors for advanced driver assistance systems (ADAS) and autonomous driving functions. Officially termed a “modular terahertz engine,” the sensor can be tailored for various applications. Carey emphasized that the cost will be positioned between that of a radar and a lidar system, likely amounting to a few hundred dollars rather than several thousand. This pricing strategy is crucial for widespread adoption across all vehicle segments, including more affordable models.

The inspiration for founding Teradar emerged from a personal tragedy. A close friend of Carey’s died in a car accident under conditions where existing sensor technologies, cameras, lidar, and radar, each had significant limitations. This event highlighted a critical gap in automotive sensing capabilities. While already exploring opportunities in the autonomous vehicle space, Carey began discussing the problem with Gregory Charvat, who would become Teradar’s CTO. Charvat shared a long-standing interest in terahertz imaging, and together, with third co-founder Nick Saiz, they launched the company with initial support from MIT’s The Engine incubator.

Although the terahertz spectrum has been the subject of academic research and some commercial efforts, previous attempts often targeted industrial or security uses. Carey credits recent progress in silicon technology and the expertise of his team for enabling Teradar’s rapid development. He specifically highlighted Saiz’s exceptional skill in terahertz chip design as a key competitive advantage.

Gaining traction in the highly competitive automotive industry has been an uphill battle. Carey admits that capturing the attention of major automakers, securing their financial commitment, and obtaining precious test track time is exceptionally difficult. The fact that Teradar has managed to achieve these milestones signals that the industry is beginning to take their technology seriously. After all the demos and rigorous testing, the initial skepticism has given way to belief.

(Source: TechCrunch)