- Applied Intuition, a prominent autonomous vehicle software startup, has successfully closed a $300 million secondary sale, just four months after raising $250 million in a Series E round.
- The successful closing of a $300 million secondary sale shortly after a substantial Series E round is a testament to the burgeoning interest and confidence in AI-driven companies.
OUR TAKE
Applied Intuition’s got some serious cash flow now. They just closed a 300 million secondary sale, like, hot on the heels of their 250 million Series E. It’s like they’re printing money in the AI auto world. Fidelity’s joining the party, and even the early birds like Lux Capital and Andreessen Horowitz are doubling down. It’s a sign that investors are betting big on the future of self-driving cars, and Applied Intuition’s got the software to make it happen. But hey, let’s see if they can turn all that cash into even more advanced simulations and data management tools.
–Miurio huang, BTW reporter
What happened
Applied Intuition, a prominent 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 development underscores the intense investment activity surrounding artificial intelligence companies.
The secondary round introduced Fidelity Management & Research Company to an already impressive roster of investors. Existing backers like Lux Capital’s Bilal Zuberi, Elad Gil, Andreessen Horowitz, and Mary Meeker’s growth fund Bond also participated, providing current and former employees, along with early investors, an opportunity to sell their equity.
Founded in 2017, Applied Intuition specialises in software that assists other companies in developing and testing autonomous vehicle solutions. Their technology enables automakers to create simulations for evaluating vehicle perception stacks and behavior systems. Additionally, Applied Intuition offers software designed to help clients efficiently manage large volumes of data related to autonomous driving.
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Why it’s important
The successful closing of a $300 million secondary sale shortly after a substantial Series E round is a testament to the burgeoning interest and confidence in AI-driven companies. Applied Intuition’s ability to attract such significant investment highlights its pivotal role in the autonomous vehicle industry and the broader AI landscape.
Co-founder Qasar Younis expressed a vision for Applied Intuition to be the “first call” for automakers and defense companies facing software or AI challenges. The company’s impressive client list, which includes 18 of the top 20 automakers such as General Motors, Toyota, and Volkswagen, as well as autonomous vehicle startups like Gatik, Motional, and Kodiak, reflects its growing influence and market penetration.
This secondary sale comes amid a broader trend of substantial investments in generative AI startups. According to Crunchbase data, over 250 startups in the AI space raised a collective $12.3 billion in the first half of 2024 alone. The robust investment activity signifies the strategic importance of AI innovations across various industries.
Moreover, secondary sales have gained traction as an alternative to IPOs, particularly in a market where public offerings for tech startups have become scarce. Industry Ventures data reveals that the market for secondary sales has expanded dramatically, growing from approximately $35 billion in 2017 to an estimated $138 billion in 2023. This trend provides liquidity options for early investors and employees, fueling further growth and innovation within the tech sector.
Applied Intuition’s recent $300 million secondary sale not only underscores the company’s robust growth and investor confidence but also highlights the dynamic investment landscape for AI startups. As the autonomous vehicle industry continues to evolve, Applied Intuition’s innovative solutions and strategic positioning make it a critical player in shaping the future of autonomous transportation and AI technology.
