US-based technology company Peloton Technology raised $16m in an oversubscribed series A round yesterday led by car components manufacturer Denso International America and Intel Capital, the corporate venturing arm of chip maker Intel.
Auto parts supplier Magna International, and Castrol InnoVentures, Volvo Group Venture Capital and UPS Strategic Enterprise Fund, the respective corporate venturing subsidiaries of industrial and automotive lubricants producer Castrol, industrial group Volvo, and logistics company UPS, also invested in the round.
The corporates were joined by existing backers Sand Hill Angels, Band of Angels and Birchmere Ventures. The three previously took part in a $1.5m seed round in 2013 alongside UPS Strategic Enterprise Fund and Castrol InnoVentures.
Peloton has developed automated safety technology for lorries that wirelessly connects pairs of vehicles together. The technology controls both acceleration and braking through a radar-based system while drivers retain steering control.
Linking lorries together in this way enables them to form platoons that, on top of increasing safety, also save a significant amount of fuel thanks to reduced aerodynamic drag. The system is controlled via a cloud-based platform that ensure lorries only link on safe roads in optimal weather conditions.
The fresh funding will support the company’s continued development and deployment of its technology in the US and internationally. Intel Capital invested its share through its $100m Connected Car Fund.