Startup Funding: August 2023

August startup funding continued to follow the trends that put AI and autonomous driving at the top of funding. One of August’s largest rounds went to a company designing AI processor IP that can scale from the edge to the cloud. Plus, three battery manufacturers brought in one billion dollars or more.

This report covers 37 companies that collectively raised $4.2 billion in August 2023.

[Editor’s Note: Due to changes in reporting in China, which impact the flow of reliable data, we are limiting our funding coverage of startups in China.]

AI hardware

Tenstorrent raised $100.0M in strategic financing led by Hyundai Motor Group and Samsung Catalyst Fund, with participation from Fidelity Ventures, Eclipse Ventures, Epiq Capital, Maverick Capital, and others. Tenstorrent develops AI processor IP and chips based on RISC-V. It targets a range of applications from server and HPC to edge cloud to edge devices with RTL that can be parameterized into a 6/4/3/2-wide superscalar out-of-order processor depending on system PPA goals. The company is also developing chiplets and AI accelerator PCIe cards.  “With this investment, [Hyundai] expects to develop optimized but differentiated semiconductor technology that will aid future mobilities and strengthen internal capabilities in AI technology development,” said Heung-soo Kim, executive VP and head of the Global Strategy Office at Hyundai Motor Group. Funding will be used to accelerate product development, the design and development of AI chiplets, and its ML software roadmap. Founded in 2016, it is based in Toronto, Canada.

Sapeon raised over 60,000.0M won (~$45.3M) in Series A funding led by Ascent Equity Partners, joined by GS Group, Daebo Communication & Systems, Hana Financial Group, Mirae Asset, We Ventures, E1 Corporation, and others. Sapeon develops processors for AI inference acceleration in the data center. The company is preparing to launch its latest NPU, which it claims will have 4X performance compared to the current generation with new learning features that enhance AI processing in real-time. Sapeon offers its technology as chips, PCIe cards, and servers. It also intends to provide AI algorithms, software, and services. Founded in 2022 by SK Telecom, SK Hynix, and SK Square, it is based in Seongnam, South Korea.

Manufacturing & equipment

Soft Robot Technology (SRT) raised CNY 150.0M (~$20.9M) in Series C and C+ rounds from Jinshi Investment, Pegasus Capital, and others. SRT offers a range of soft robotics equipment for materials handling and assembly in the semiconductor, electronics, and other industries. Founded in 2016, it is based in Beijing, China.

MacroFab received $20.0M in growth capital from Trinity Capital. The company also secured a revolving a credit facility of up to $10.0M from Pacific Western Bancorp. MacroFab provides a cloud manufacturing platform for PCB assembly from prototype to high volume production. The platform provides sourcing and supply chain management with options for alternative components, quotes, programming and testing, conformal coating, and system integration. The company has a network of more than 100 manufacturing lines across North America. Founded in 2013, it is based in Houston, Texas, USA, and has raised $102M to date.

Membrion raised $12.5M in Series B financing led by Samsung Ventures, Lam Capital, and PureTerra Ventures, joined by Indico Capital Partners, Harvard Business School New York Alumni Angel Group, New York Angels, GiantLeap Capital, Safar Partners, and Freeflow Ventures. Membrion makes electro-ceramic desalination membranes for semiconductor and industrial wastewater treatment. The company claims its membranes can recover up to 98% of water in harsh conditions, such as high temperatures, low pH ranges, and with challenging trace chemicals. Founded in 2016, it is based in Seattle, Washington, USA.

Comptek Solutions raised €8.0M (~$8.7M) in Series A funding from the European Innovation Council, LIFTT S.p.A., and a consumer electronics company. Comptek addresses the issue of oxidation in III-V compound semiconductor materials, which are used in optoelectronics and power electronics, through its passivation technology that promotes controlled surface crystalline oxidation. The process makes the resulting surface resistant to further oxidation, preserving device performance. The company is planning to roll out its first full turnkey solutions for passivation of edge emitting lasers. A spin out from the University of Turku founded in 2017, it is based in Turku, Finland.

Test, measurement & inspection

Flojoy raised $1.3M in seed funding from Flybridge Capital Partners, Boreal Ventures, and BDC Capital. Flojoy offers no-code test, measurement, and control AI software. Open source and based on Python, it supports a range of scientific instruments and microcontrollers, including oscilloscopes, motor controllers, DAQ boards, digital multimeters, power supplies, and temperature controllers. Funds will be used for hiring and to support more instruments. Founded in 2023, it is based in Montreal, Canada.

Materials

Jiva Materials raised £1.0M (~$1.3M) in a funding round led by Katapult VC and Low Carbon Innovation Fund 2, joined by Sorbon Investments, Armstrong Capital Management, and Moonstone Venture Capital. Jiva Materials makes a recyclable and biodegradable PCB substrate based on natural fibers and a halogen-free polymer. The plant-based PCB material is enclosed in a non-toxic polymer that dissolves when immersed in hot water, leaving only compostable organic material. It also allows the electronic components soldered to the board to be recovered and recycled. Founded in 2017, it is based in London, UK.

Wireless

TeraSi raised 13.0M SEK (~$1.2M) in a pre-seed round from Navigare Ventures, Almi Invest, Onsight Ventures, Deeptech Labs, and existing investors. TeraSi develops passive components and system-in-package technology for high-frequency wireless applications above 60 GHz. It plans to build products for the test and measurement, radar, and 6G wireless markets. Founded in 2020, it is based in Stockholm, Sweden.

HaiLa Technologies was awarded a CAD $0.5M (~$0.4M) grant from Quebec’s Technoclimat program. HaiLa develops communication IP for radioless ultra-low-power IoT sensors. Its technology uses a backscattering technique which allows modulation of digital sensor data on top of existing ambient signals of different protocols while maintaining the integrity of the signal to the original protocol and without the need for a dedicated signal generator. Founded in 2017, it is based in Montreal, Canada.

Photonics & optics

Printoptix and Viewpointsystem received a €2.5M (~$2.7M) grant from the European Innovation Council to develop 3D printed multi-component micro-optics for smart wearables, medical devices, and industrial applications. Printoptix, developer of the optics 3D printing process, was founded in 2020 and is based in Stuttgart, Germany. Viewpointsystem, a maker of AR smart glasses, was founded in 2016 and is based in Vienna, Austria.

Quantum computing

Phasecraft raised £13.0M (~$16.6M) in a Series A round led by Playground Global, joined by AlbionVC and existing investors Episode1 Ventures, Parkwalk Advisors, London Co-Investment Fund, and UCL Technology Fund. Phasecraft develops quantum algorithms with high computational efficiency. Its initial focus is materials modeling and simulation. Founded in 2019, it is based in London, UK.

QSimulate received a $1.0M convertible note from Kyoto University Innovation Capital and the University of Tokyo Collaborative Creation Platform. QSimulate provides quantum chemistry and mechanics simulation platforms for drug discovery and materials design, along with specialized software for quantum computing applications. Founded in 2018, it is based in Boston, Massachusetts, USA.

BosonQ Psi received $0.1M in funding from the Griffiss Institute HUSTLE Defense Accelerator program. BosonQ Psi is developing engineering simulation software designed to run on quantum computers and take advantage of hybrid quantum-classical approaches. Its software currently provides structural mechanics, thermal sciences, and design optimization capabilities. Future versions will incorporate fluid mechanics, electrochemistry, electromagnetics, and acoustics. Based in Bhilai, India, it was founded in 2020.

Sensors

USound received a €10.0M (~$11.0M) growth investment led by eQventure and joined by individual investors. USound makes MEMS speakers for applications such as wearables, TWS earbuds, hearing aids, smartphones, and AR/VR glasses. Funds will support high-volume production. Based in Graz, Austria, it was founded in 2014.

Displays & AR/VR

beeOLED raised €13.3M (~$14.4M) in Series A funding led by eCapital Entrepreneurial Partners and Innovation Industries, joined by KBC Focus Fund and existing investors Merck’s M Ventures, High-Tech Gründerfonds, TGFS, and JBN-Invest. beeOLED develops efficient and stable deep-blue emitters for OLEDs based on vapor deposited Europium (Eu2+) materials. Founded in 2020, it is based in Dresden, Germany.

QNA Technology raised around PLN 16.0M (~$4.0M) in Series B and C funding. QNA Technology produces blue-light emitting, heavy metal-free quantum dots and quantum dot-based inks. Both photoluminescent and electroluminescent, they can be used to make LEDs for displays and lighting, EL displays, and in biochemical applications. The company is preparing to list on the ASO NewConnect exchange. Founded in 2016, it is based in Wroclaw, Poland.

Kubos Semiconductors was awarded a £0.7M (~$0.9M) grant from Innovate UK. Kubos develops technology for producing LEDs using cubic gallium nitride (GaN). The company says its technology enables the growth of single phase cubic GaN on large diameter cubic silicon carbide (3C-SiC) wafers grown on silicon, which can be used as a direct replacement for existing substrates in the LED fabrication process. Kubos says that benefits include reduced energy consumption, increased brightness, faster switching, and creation of true green microLEDs. The grant will support achieving 5% efficiency for red microLEDs to make them viable in AR/VR applications. Founded in 2017, it is based in Cambridge, UK.

Automotive

T2 Auto raised JPY 4,750.0M (~$32.6M) in pre-A and Series A rounds that included Usami Koyu Corp, Toho Acetylene, MS&AD Insurance Group, Mitsui-Soko Logistics, JA Mitsui Leasing, KDDI Corporation, Kiyo Capital Management, and Daiwa Logistics. The startup is developing L4 automated driving technology for heavy trucks on highway logistics routes. Funds will be used to accelerate development of L4 trunk line transportation services. Founded in 2022, it is based in Ichikawa, Japan.

Serve Robotics drew $30.0M in financing led by Uber, Nvidia, and Wavemaker Partners, joined by new investors Republic Deal Room and individual investor Mark Tompkins. The startup provides autonomous delivery services using small robots on sidewalks. Serve is also in the process of going public through a reverse merger with SPAC Patricia Acquisition Corp. Formed in 2017 as the robotics division of Postmates and spun out in 2021, it is based in Redwood City, California, USA.

Helm.ai added $24.0M to its Series C, bringing the round to $55.0M. The round was led by Freeman Group and joined by ACVC Partners, Amplo, Honda Motor, Goodyear Ventures, and Sungwoo Hitech. Helm.ai develops AI software for ADAS and L4 autonomous driving in both commercial and consumer vehicles. Its software, which covers perception, intent modeling, path planning, and vehicle control, uses an unsupervised learning method based on mathematical modeling that the company says allows it to train on large scale datasets quickly and cost-effectively with little to no human intervention. Funds will be used for R&D, productization of its self-driving technologies, and to further execute on commercial engagements in the automotive and robotics sectors. Founded in 2016, it is based in Menlo Park, California, USA, and has raised $102M to date.

Turing Motors raised JPY 1,520.0M (~$10.4M) in seed and pre-Series A funding. The startup is developing and manufacturing a fully autonomous EV, with the goal of starting limited sales in 2025. Founded in 2021, it is based in Kashiwa, Japan.

Testworks raised 5,000.0M won (~$3.7M) in Series B bridge investment from MYSC, The Wells Investment, Shinhan Asset Management, Posco Capital, and Art Impact Investment. The company provides AI dataset management, including labeling, processing, and quality verification of autonomous driving data. Testworks plans to expand to quality verification for AI semiconductors and embedded software, including automotive chips. Founded in 2015, it is based in Seoul, South Korea.

Büyütech Camera Technology added $3.6M to its latest funding round, bringing it to $4.2M with investment from Kros Otomotiv, Maxis Venture Capital, Albaraka Portfolio Management, Bilisim Vadisi Venture Capital, Farplas, Albaraka Portfolio Management, Ostim Venture Capital, and ARI Technopark Project Development. The company makes camera-only ADAS systems with L2/L2+ features such as automatic emergency braking, lane keep, and adaptive cruise. It also offers side mirror, rear, and surround cameras as well as driver and occupant monitoring systems. Founded in 2011, it is based in Ankara, Turkey.

Altos Radar raised $3.5M in seed funding from ZhenFund, Monad Ventures, and individual investor and Hesai CEO David (Yifan) Li. Altos Radar offers 4D imaging radar for driver-assisted and autonomous vehicles. The radar offers detection range of 500m for cars and 180m for pedestrians and a point cloud with up to 3,000 points per frame at 10 fps. Funds will be used for mass production and marketing. Founded in 2023, it is based in Los Altos, California, USA, and Beijing, China.

Robomart drew $2.0M in seed funding from W Ventures, Wasabi Ventures, SOSV/HAX, Hustle Fund, and others. Robomart builds self-driving vehicles that act as mobile retail space for cafes, ice cream shops, restaurants, convenience stores, and grocery stores. Founded in 2018, it is based in Los Angeles, California, USA.

Batteries

ProLogium Technology was awarded a €1,500.0M (~$1,639.8M) grant from the French government, to be delivered according to milestones until 2029. ProLogium develops and manufactures solid-state batteries including with silicon oxide anode, lithium metal anode, and bipolar technology. It makes batteries in a range of form factors, including flexible packages for IoT and wearables; pouch batteries for automotive, automated guided vehicles, consumer electronics, energy storage systems, and industrial applications; and battery modules. The grant will support building a 48 GWh gigafactory in Dunkirk, France, and R&D of a new generation of EV batteries. Based in Taipei, Taiwan, it was founded in 2006.

Northvolt received a $1,200.0M convertible note led by Investment Management Corporation of Ontario, BlackRock, Canada Pension Plan Investment Board, and OMERS. Northvolt manufactures lithium-ion batteries for electric vehicles, grid storage, and industrial applications with a focus on recyclability, greener manufacturing, and a minimal CO2 footprint. The company plans to expand to 150 GWh of annual production capacity by 2030, the year it also targets for sourcing 50% of raw materials for new cells from recycled batteries. Funds will support further European and North American expansion. Founded in 2016, it is based in Stockholm, Sweden.

Redwood Materials raised $1,000.0M in Series D investment led by Goldman Sachs Asset Management, Capricorn Investment Group, and T. Rowe Price Associates, joined by new investors OMERS, Caterpillar Venture Capital, Microsoft’s Climate Innovation Fund, and Deepwater Asset Management, alongside existing investors. Redwood Materials manufactures anode copper foil and cathode active materials using new and recycled feedstocks. It recycles end-of-life EV batteries and production scrap with the aim of gradually increasing the amount of recycled content in its products. Funds will be used to expand production capacity. Founded in 2017, it is based in Carson City, Nevada, USA.

Mitra Chem raised $40.0M in the first close of a Series B round led by GM, joined by existing investors Social Capital, Fontinalis Partners, Earthshot Ventures, The Keffi Group, Boutique Venture Partners, and new investors including GS Futures, Bricks Capital Management, Zeon Ventures, Scribble VC, WovenEarth Ventures, and Bonds Investment Group. It expects the round to total $60.0M. Mitra Chem develops and produces lithium-ion battery materials, with a focus on iron-based cathode active materials like lithium manganese iron phosphate (LMFP). Funds will be used to scale R&D and pilot operations to expedite bringing the battery materials to market. Mitra Chem will also develop cathodes for batteries compatible with GM’s EV propulsion architecture. Founded in 2021, it is based in Mountain View, California, USA.

Stabl Energy raised €15.0M (~$16.5M) in new financing from Nordic Alpha Partners and the European Innovation Council. The startup offers a modular multilevel inverter platform for building battery storage systems with used EV batteries. Founded in 2019, it is based in Munich, Germany.

Form Energy was awarded a $12.0M grant from the New York State Energy Research and Development Authority. Form Energy is developing a multi-day energy storage system for renewables on the grid. The startup says its rechargeable iron-air battery is capable of delivering electricity for 100 hours at system costs competitive with conventional power plants and at less than 1/10th the cost of lithium-ion. The grant will accelerate deployment of a 10 megawatt/1000 megawatt-hour iron-air battery system in New York State. Founded in 2017, it is based in Somerville, Massachusetts, USA.

Accure Battery Intelligence raised €7.2M (~$7.8M) in Series A2 funding led by Blue Bear Capital and HSBC Asset Management, joined by Riverstone Ventures and Capnamic Ventures. Accure provides a predictive analytics platform that uses AI, field data, and modeling to detect irregular battery cell behavior and flag potential issues weeks ahead of an incident. It also manages performance and longevity for batteries used in applications such as energy storage, electric vehicles, and marine. Founded in 2020, it is based in Aachen, Germany.

NanoHydroChem was awarded a $1.1M grant from the U.S. Department of Energy. NanoHydroChem makes silicon-dominant anodes for lithium-ion batteries by encapsulating silicon nanoparticles in a protective carbon shell and porous structure that contains the volume expansion and mitigates its adverse effects. Founded in 2016, it is based in Buffalo, New York, USA.

Battery Pollution Technologies drew $0.4M in pre-seed financing. The startup provides lithium-ion battery recycling, lithium battery fire mitigation products, and battery storage systems built from spent lithium batteries. Founded in 2021, it is based in Sydney, Australia.

Group1 received a $0.3M seed investment from the University of Texas at Austin Discovery to Impact program. Group1 is developing potassium-ion battery cathode materials. The startup claims its 4V cathode material, Potassium Prussian White, is compatible with commercially available graphite anodes and enables batteries with faster charging, higher energy density, and better safety compared to LFP-based lithium-ion or sodium-ion batteries. Funds will be used for pilot production and establishing partnerships. Founded in 2021 based on research from the University of Texas at Austin, it is based in Austin, Texas, USA.

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