Nuro Raises $106M to License Autonomous Technology

Nuro Secures $106 Million to Expand Autonomous Driving Technology

Following extensive marketing campaigns and large-scale demonstrations of its technology throughout the United States, Nuro has obtained $106 million in new funding. This investment is intended to facilitate the scaling of its autonomous driving capabilities and strengthen existing commercial collaborations.

Funding Details and Valuation

The Series E funding round elevates Nuro’s total funding to $2.2 billion, with a company valuation of $6 billion. While this represents a decrease from the $8.6 billion valuation achieved after its $600 million Series D round in 2021, it aligns with the broader trend of adjusted valuations within the startup landscape.

A down round in funding doesn’t necessarily indicate a lack of investor confidence, particularly given the current challenging funding climate. It's also plausible that Nuro’s altered business strategy requires a reduced capital outlay.

Strategic Shift Towards Technology Licensing

Dave Ferguson, co-founder and president of Nuro, explained to TechCrunch, “Our last funding round occurred at the market’s peak in 2021. We are very satisfied with this valuation and the confidence it demonstrates in our revised go-to-market approach.” He further stated the company is operating efficiently and building a sustainable business with its partners.

Nuro previously focused on developing and operating autonomous delivery robots designed for goods transport, partnering with companies like Domino’s. However, vehicle manufacturing proved costly, leading to rapid cash expenditure.

Following workforce reductions and a pause on manufacturing plans, Nuro shifted its focus to enhancing its self-driving technology, continuously tested in California and Texas. Advancements in artificial intelligence were projected to extend the company’s operational runway from 1.5 to 3.5 years, as noted in a May 2023 blog post.

Future Expansion and Investor Confidence

A Nuro spokesperson indicated to TechCrunch that this new funding will support commercial expansion initiatives through 2027.

The continued support from existing investors – including T. Rowe Price Associates, Fidelity Management & Research Company, Tiger Global Management, Greylock Partners, and XN LP – alongside strategic partners, is a positive indicator for Nuro.

Jiajun Zhu, co-founder and CEO of Nuro, stated, “We’re excited to see strong investor enthusiasm for our Series E.” He emphasized that Nuro’s technology, experience with Level 4 deployments, and licensing focus uniquely position it to assist automakers and fleets in accelerating their autonomous vehicle development.

Competitive Landscape

Nuro’s evolving business model places it in competition with companies like Wayve, based in the U.K., which also aims to provide its technology for a range of autonomous applications, including personal vehicles and robotaxi services.

Key Takeaways

• Nuro has secured $106 million in Series E funding.
• The company’s valuation is now $6 billion, a decrease from its previous valuation.
• Nuro is pivoting towards licensing its autonomous driving technology.
• Existing investors continue to demonstrate strong support.

This article has been updated to include additional details regarding Nuro’s operational timeline and a statement from Nuro’s president and co-founder, Dave Ferguson.

Correction: A previous iteration of this article contained an inaccurate projection of Nuro’s operational runway. We apologize for this error.