TTTech Auto, an Austria-based provider of safety software for autonomous vehicles, received $285m in funding from car producer Audi and automotive technology producer Aptiv yesterday at a valuation exceeding $1bn.
Aptiv put in the lion’s share of the funding, contributing $228m, while Audi is strengthening its existing stake in the company with an additional $57m.
Spun out of Vienna University of Technology in 1998, TTTech develops safety hardware and software for self-driving cars.
The company plans to use the capital to improve its MotionWise safety software product, which is designed to help automotive manufacturers shorten the development of their cars by managing the multitude of data inputs an autonomous vehicle needs to handle.
TTTech will also put the proceeds toward expand its wider product portfolio and its business in Asia, North America and Europe as well as exploring strategic investments and acquisitions.
As driverless vehicles come nearer to being a widespread reality, autonomous driving software providers have been packing in funding. China-based on-demand ride provider Didi Chuxing raised $300m for its autonomous driving technology subsidiary in January 2021.
Industrial holding group B&C had bought a 9% stake in TTTech Auto in 2018 through its corporate venturing unit, B&C Innovation Investments. The company was also the first recipient of capital from electronics manufacturer Samsung’s $300m Automotive Innovation Fund, when it invested $89m the previous year.
Audi bought a minority interest in TTTech in 2006 and later invested as part of a $55m funding round in 2015 that also featured industrial conglomerate General Electric and chipmaker Infineon Technologies.
For Audi the relationship has been a fruitful one, as TTTech helped develop the level 3 autonomous system for its A8 luxury sedan. The carmaker has been intensifying its ambitions for automation, having released concepts for its self-driving Skysphere and Grandsphere vehicles in 2021.
TTTech chief executive Georg Kopetz said: “The next few years will be critical for the entire industry in the transition from automation to semi-autonomous driving and the software-defined vehicle.
“With MotionWise, we are supporting this industry transformation as an independent company with the most advanced safety software platform on the market. This funding will strengthen our position as a leader in automotive safety software and significantly increase our global footprint.”
Even beyond purely autonomous driving, cars are generally becoming more digital, with the software component more integral to ownership, and the flow of funding has reflected that movement.
Automotive software developer Sonatus raised $35m in a July 2021 series A round featuring carmaker SAIC and semiconductor Foundry UMC along with fellow corporates LG, Hyundai Motor Group (through its Kia subsidiary), Marvell and Wanxiang.
Photo courtesy of TTTech Computertechnik AG.
