teradar Secures $150M Funding for Next-Gen Sensor Technology

Teradar: Pioneering Terahertz Sensing Technology

Matt Carey, co-founder and CEO of Teradar, a Boston-based startup, welcomes skepticism regarding his company’s innovations.

He recently shared with TechCrunch that encountering disbelief is precisely the reaction they anticipate.

Developing a Novel Solid-State Sensor

For several years, Carey has been dedicated to developing a solid-state sensor capable of perceiving the environment utilizing the terahertz band of the electromagnetic spectrum.

This band resides between microwaves and infrared radiation, effectively merging the advantages of radar sensors – such as their lack of moving components and ability to penetrate adverse weather conditions – with the enhanced resolution offered by laser-based lidar systems.

Addressing Initial Doubt with Demonstrations

Given the unprecedented nature of this technology at its current scale, initial reactions from potential partners are often understandably doubtful when Carey describes its capabilities.

The concept of a long-range, high-resolution, and affordable sensor frequently appears too promising to be realistic.

Carey typically addresses this skepticism through live demonstrations, such as the one conducted at the Consumer Electronics Show in Las Vegas.

There, he showcased an early Teradar sensor scanning crowds outside the Westgate hotel, while representatives from major automotive manufacturers observed its real-time scene analysis.

“Many were initially hesitant until they experienced the technology firsthand,” Carey stated.

“Securing funding consistently requires extensive demonstrations where individuals attempt to challenge the system’s limitations, and that’s a crucial aspect of the process.”

Securing Significant Funding

These demonstrations, coupled with the underlying technology, facilitated a $150 million Series B funding round.

Investors included Capricorn Investment Group, Lockheed Martin’s venture arm, Ibex Investors, and VXI Capital, a defense-focused fund spearheaded by the former CTO of the U.S. military’s Defense Innovation Unit.

Automotive Industry Validation and Future Plans

Teradar is currently collaborating with five leading automakers in the U.S. and Europe to validate the technology.

The company anticipates securing a contract to integrate its sensors into 2028-model vehicles, necessitating readiness by 2027.

Furthermore, Teradar is partnering with three Tier 1 suppliers to manage manufacturing processes.

Applications in Advanced Driver Assistance Systems

The primary objective for Teradar is to enable automakers to implement its sensors in advanced driver assistance systems and, ultimately, self-driving technologies.

The “modular terahertz engine” – the official name for the sensor – can be tailored to suit various applications.

Carey anticipates the price point will fall between that of radar and lidar systems, estimated to be in the hundreds of dollars rather than thousands.

“Our goal is to make this technology accessible to all vehicles,” Carey explained.

“Implementing a $1,000 lidar system on a vehicle like my Ford Focus is simply not feasible.”

Inspired by a Personal Tragedy

Carey’s motivation to establish Teradar stemmed from a friend’s fatal car accident.

“The crash occurred under unusual circumstances, involving sun glare and fog, conditions that existing sensors were unable to adequately address,” he recounted.

Cameras struggle with glare, lidar is hampered by fog, and radar’s resolution is often insufficient in such scenarios.

The Genesis of Teradar

Carey was previously considering a position with an automaker, focusing on autonomous vehicle technology.

In 2021, he began discussions with Gregory Charvat, CTO of Humatics, a spatial sensor and intelligence company, regarding this identified problem.

“[Charvat] expressed a long-standing interest in imaging at terahertz frequencies,” Carey noted.

Subsequently, they launched Teradar at MIT’s The Engine nonprofit incubator, with initial seed funding provided by MIT’s Engine Ventures.

Potential Beyond Automotive

While the current focus is on the automotive sector, Teradar’s sensor technology holds potential applications in other fields, such as defense.

The composition of the company’s investor base reflects this interest.

Overcoming Technological Hurdles

Carey acknowledges that he is not the first to explore the terahertz spectrum, citing extensive academic research and prior commercialization attempts.

However, he emphasizes that these efforts were largely concentrated on industrial or security applications.

Recent advancements in silicon technology, combined with a dedicated team of experts – including co-founder Nick Saiz, whom Carey describes as “the world’s best terahertz chip designer” – have enabled rapid progress and attracted interest from major automakers.

Challenges in Gaining Industry Acceptance

Securing the attention, investment, and access to testing facilities from established automotive manufacturers has proven challenging.

“The fact that we have successfully overcome these hurdles is a significant achievement,” Carey stated.

A Shift in Perspective

In essence, the industry is now beginning to believe in Teradar’s vision.

Correction: Teradar was created at MIT’s The Engine incubator, but not funded by it. The story has been updated to reflect this.