Lidar tech company Luminar has landed a deal that could bring in up to $200 million, providing a much-needed financial boost as it deals with leadership changes and ongoing layoffs.
New Funding Deal
The agreement, revealed in a regulatory filing, involves Yorkville Advisors Global and an undisclosed investor. Luminar will kick things off by issuing $35 million in convertible preferred stock, with the option to sell additional tranches (up to $35 million every 60 days) over the next 18 months. However, the company isn’t required to issue more stock if it decides against it.
CFO Tom Fennimore described the deal as a move toward “extending our liquidity runway,” highlighting that it bolsters the company’s balance sheet. The initial $35 million is expected to cover general corporate expenses and help pay down debt.
Leadership Overhaul and Workforce Cuts
This funding announcement comes on the heels of a sudden CEO change earlier this month:
- Founder Austin Russell has stepped down as CEO and board chair.
- Paul Ricci, the former CEO of Nuance (famous for its AI speech recognition technology), has taken the reins.
This leadership transition coincides with several rounds of layoffs:
- Luminar has reduced its workforce by 30% since 2024, which amounts to 212 employees.
- A new wave of job cuts began on May 15, anticipated to cost between $4 million and $5 million in severance and related expenses.
From Silicon Valley Darling to Struggling Startup
Once a rising star in the lidar space, Luminar was founded by Russell in 2012 when he was just 17. It gained significant attention in 2017 during the height of the self-driving car craze, later going public through a SPAC merger in 2021 at a valuation of $3.4 billion.
Today, its market cap has plummeted to just $179 million—a dramatic fall. The company has undergone multiple restructuring efforts, and Yorkville’s involvement raises eyebrows, considering its history of supporting troubled firms like Lordstown Motors, Faraday Future, and Canoo, all of which ultimately failed.
