Applied Intuition, an autonomous vehicle software startup, has successfully closed a $300 million secondary sale, just four months after raising $250 million in a Series E round. This latest funding round highlights the intense investment activity surrounding artificial intelligence companies.
Joining an already impressive list of investors, Fidelity Management & Research Company participated in the secondary round. Other notable investors in the automotive AI startup include Bilal Zuberi of Lux Capital, Elad Gil, Andreessen Horowitz, and Mary Meeker’s growth fund, Bond. The round allowed current and former employees, as well as early backers, to sell their equity.
Established in 2017, Applied Intuition develops software that enables other companies to build and test their own autonomous vehicle solutions for cars and other vehicles like planes. The software involves creating simulations that allow automakers to assess their perception stack and vehicle behavior systems. Applied Intuition also offers software that helps customers efficiently handle large volumes of data related to autonomous driving.
Co-founder Qasar Younis aims for Applied Intuition to be the go-to solution provider for automakers and defense companies facing software or AI-related challenges. The startup boasts partnerships with “18 of the top 20 automakers,” including industry giants General Motors, Toyota, and Volkswagen. They have also collaborated with AV startups such as Gatik, Motional, and Kodiak.
The secondary round was oversubscribed, reflecting the continued influx of investment in generative AI startups. According to Crunchbase data, over 250 startups in this space have raised a total of $12.3 billion in the first half of 2024. This indicates the significant interest and confidence investors have in the potential of AI technology.
Secondary sales have gained popularity as the IPO market for tech startups has slowed down. Data from Industry Ventures reveals that the secondary market is projected to grow from approximately $35 billion in 2017 to an estimated $138 billion by 2023. This trend further emphasizes the increasing prominence of secondary sales as a means for tech startups to secure funding and provide liquidity for existing stakeholders.
Applied Intuition’s recent funding success and its impressive roster of investors and partnerships demonstrate the company’s position as a key player in the autonomous vehicle software industry. With its focus on solving software and AI challenges, Applied Intuition is well-positioned to continue its growth and contribute to the advancement of autonomous driving technology.