Aeva, a lidar technology firm founded by two former Apple engineers, has secured an additional $200 million in private funding from Hong Kong-based hedge fund Sylebra Capital as it prepares to become a publicly listed company.

The Mountain View, California company initially announced in the fall of 2020 its plans to merge with special purpose acquisition company InterPrivate Acquisition Corp., establishing a post-merger market value of $2.1 billion. This new investment from Sylebra, an existing shareholder in InterPrivate common stock, increases the total gross proceeds anticipated upon commencement of trading to over $560 million, as stated by the company.

Aeva had previously obtained $120 million in private investment in public equity, or PIPE, including contributions from Adage Capital and Porsche SE. Prior to Sylebra’s additional investment, the combined company’s gross proceeds, encompassing $243 million held in trust by InterPrivate, totaled $363 million.

Significantly, Sylebra has also committed to a one-year lock-up period for the majority of its investment and will cast all eligible votes in support of the transaction. Aeva anticipates the merger will be finalized during the first quarter of the current year.

Aeva’s co-founder and Chief Executive Officer, Soroush Salehian, described the investment as a “substantial demonstration of confidence” in the company’s business strategy and expansion objectives. Salehian indicated in a statement to TechCrunch that the additional $200 million will be allocated to further research and development efforts and to expand its initiatives across key sectors including automotive, consumer electronics, and industrial applications.

“We have observed growing customer interest in our distinctive 4D LiDAR technology within each of these areas in recent months, and these additional resources will enable us to respond to this heightened demand more efficiently,” he explained.

Lidar, or light detection and ranging radar, utilizes laser light to measure distances and create a precise 3D representation of the surrounding environment. Aeva’s founders, Salehian and Mina Rezk, have created what they refer to as “4D lidar,” capable of measuring both distance and instantaneous velocity without compromising range, while also mitigating interference from sunlight or other sensors. The company’s FMCW technology also requires less power, facilitating the integration of perception software.

Lidar sensors are broadly recognized as essential for the widespread adoption of self-driving vehicles. However, lidar companies have begun to explore numerous other applications for these sensors as the timeline for fully autonomous vehicle commercialization has extended. Over the past two years, automotive manufacturers have increasingly recognized lidar as a valuable sensor for enhancing the capabilities and safety of advanced driver-assistance systems in new vehicles, including cars, trucks, and SUVs. While Aeva’s technology was initially designed for autonomous and advanced driving applications, Salehian notes it is also attracting attention from the consumer electronics industry.

Aeva is among a select group of lidar companies choosing to enter the public market through a merger with a SPAC, rather than a traditional initial public offering. Both Velodyne and Luminar have also become publicly traded companies via SPAC mergers. Lidar startup Ouster announced in December an agreement to go public through a merger with Colonnade Acquisition Corp.