NPS Completes $17.5M Series B Funding for Software-Defined Radar Led by Cota Capital with Key Strategic Investment from GM Ventures and RTX Ventures

Rhea-AI Summary

Neural Propulsion Systems (NPS) secures a $17.5 million Series B funding round led by Cota Capital with contributions from GM Ventures and RTX Ventures. The investment will enhance roadway safety and defense radar systems through the development of the award-winning Atomic Sensing Platform for automotive radar technology.

Positive

• Securing a $17.5 million Series B funding round signifies investor confidence in NPS's vision and technology.
• The collaboration with GM Ventures and RTX Ventures highlights industry recognition of NPS's innovative radar technology.
• The Atomic Sensing Platform promises over 10 times greater performance enhancements than current radar capabilities, positioning NPS at the forefront of the $28 billion radar market.
• NPS's software-defined radar achieves near maximum likelihood performance in detection, improving clarity and early detection.
• NPS's technology aligns with NHTSA's proposed rule changes to reduce roadway fatalities, showcasing its relevance in meeting future safety standards.

Negative

• None.

Market Research Analyst

The $17.5 million Series B funding secured by Neural Propulsion Systems (NPS) signifies a substantial injection of capital into a company poised to disrupt the radar technology sector. With the radar market estimated at $28 billion, NPS's advancements could capture a significant market share, especially considering their claim of performance enhancements over 10 times greater than current capabilities. The participation of GM Ventures and RTX Ventures not only brings financial support but also strategic automotive and defense industry insights that could accelerate NPS's growth trajectory.

The investment in NPS aligns with broader industry trends focusing on safety and efficiency. The National Highway Traffic Safety Administration's proposed rule changes underscore the demand for advanced radar systems that can aid in reducing roadway fatalities. NPS's Atomic Sensing Platform, which leverages the Atomic Norm mathematical framework for improved radar resolution, could be a key enabler for companies to comply with these evolving regulations. This suggests potential for increased adoption of NPS technology in the automotive sector, which could, in turn, drive demand for their software-defined radar (SDR) solutions.

Financial Analyst

Investors should note the strategic value of the Series B funding round for NPS. The involvement of GM Ventures and RTX Ventures indicates confidence from within the automotive and defense sectors, potentially leading to future collaborations or integration of NPS technology in their products. The SDR's ability to work with all radar hardware and improve existing sensing platforms could offer cost-saving benefits to manufacturers, an attractive proposition for stakeholders looking to optimize capital expenditures.

Moreover, the improved performance and efficiency of NPS's radar technology could lead to a competitive advantage in the market. It's essential to monitor how NPS's technology will scale and integrate within the existing supply chains and whether it will lead to long-term partnerships or acquisitions. The company's trajectory following this funding round could significantly influence its valuation and attractiveness to future investors.

Automotive Industry Expert

The endorsement of NPS by leading automotive and defense entities suggests that their software-defined radar technology is not only innovative but also applicable to real-world challenges. The Atomic Sensing Platform's potential to enhance automatic emergency braking (AEB) and pedestrian AEB (PAEB) systems is particularly relevant. As regulatory pressures increase for enhanced vehicle safety features, NPS's technology could become integral to OEMs' strategies to meet these standards.

With the claim of achieving near maximum likelihood performance in radar detection, NPS is setting a new bar for what is possible in radar sensing. This could lead to earlier and more accurate detection capabilities, which are critical in autonomous driving and advanced driver assistance systems (ADAS). The ripple effect of such advancements could extend to insurance costs, vehicle safety ratings and ultimately consumer demand for safer vehicles.

PLEASANTON, Calif., March 7, 2024 /PRNewswire/ -- Neural Propulsion Systems (NPS), a pioneer in software-defined radar, today announced it secured a $17.5 million Series B funding round. The round is led by Cota Capital with contributions from GM Ventures, the venture capital arm of General Motors Co. (NYSE: GM), and RTX Ventures, the venture capital arm of RTX (NYSE: RTX). This collaboration marks a transformative step in enhancing roadway safety (benefiting pedestrians, drivers and all other traffic participants) and defense radar systems.

NPS will use the investment to further develop and apply its award-winning Atomic Sensing Platform to automotive radar technology. The platform provides significantly enhanced, reliable radar resolution and groundbreaking precision. The improved performance stems from a new mathematical framework known as the Atomic Norm (AN), revolutionizing how the raw sensor data is processed into relevant information.

"This investment confirms the value of our vision and technology," said Dr. Behrooz Rezvani, Founder and CEO of NPS. "By harnessing the potential of our newly developed radar technology, we can potentially achieve performance enhancements that are over 10 times greater than current radar capabilities, putting us at the forefront of revolutionizing the $28 billion radar market. Our radar software works with all radar hardware and significantly improves the performance of existing sensing platforms with lower cost and more efficiency."

The NPS software-defined radar, SDR, achieves near maximum likelihood performance in detection — meaning, the NPS proprietary software achieves close to what is theoretically possible with existing radar sensors. This advancement in radar technology enables clearer and earlier detection.

"Behrooz and his team are achieving new benchmarks for advanced radar sensing technology," said Bobby Yazdani, Founder and Partner of Cota Capital. "We recognize the significant impact NPS can have in the fields of mobility and defense systems, and our investment reflects Cota Capital's commitment to ground-breaking innovation."

The National Highway Traffic Safety Administration's (NHTSA) proposed rule changes in May 2023 aim to significantly reduce roadway fatalities by strengthening regulations around automatic emergency braking (AEB) and pedestrian AEB (PAEB). NPS's technology is poised to further assist companies and suppliers in meeting these new standards, using less complex and more reliable sensors.

"NPS's continued focus on enhancing defense radar systems exemplifies the commitment that is needed to transform the aerospace and defense landscape," said Dan Ateya, President and Managing Director at RTX Ventures. "To protect against tomorrow's threats, RTX Ventures looks to invest in companies working to solve the most complex challenges today and the NPS automotive radar technology does just that."

About Atomic Sensing Platform and Atomic Norm Tensor Processing Software
The NPS Atomic Sensing Platform for automotive market is powered by the patented Atomic Norm Tensor Processing Software to achieve disruptively high resolution, precision and reliability. NPS ANTP radar SW performance is based on a new mathematical framework, the Atomic Norm, that transforms how sensor data is processed and understood. AN Radar SW technology achieves revolutionary, never-before-seen radar performance that solves industry-level challenges and opens the door for the future of ADAS, autonomous driving and next-generation aerospace and defense systems.

About Cota Capital
Cota Capital backs the bold. Cota is a technology investment firm that partners with exceptional teams to build and grow timeless companies that enable the future. Cota delivers Knowledge Capital, a differentiated combination of deep operational expertise, know-how, impactful and data-driven market insights and intelligence, and a vast industry network. Together, these elements are put to work to empower Cota entrepreneurs to execute their vision, unlock scale, minimize risk and bring enduring ideas to life. For more information, please visit www.cotacapital.com.

About Neural Propulsion Systems (NPS)
Founded in 2018 by Silicon Valley luminaries, NPS develops digital imaging radar technology. Based on a radar algorithm system capable of running on a multitude of hardware platforms, the NPS Atomic Norm Radar SW achieves performance that reaches the information-theoretic limits of what is mathematically possible, enabling groundbreaking applications in the mobility and defense industries. Find NPS on the Web, X and LinkedIn.

All product and company names may be trademarks or registered trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Media Contact:
Gary Bird
FortyThree, Inc.
831.888.9011
nps@43pr.com

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SOURCE Neural Propulsion Systems

What is the amount of the Series B funding round secured by Neural Propulsion Systems (NPS)?

Neural Propulsion Systems secured a $17.5 million Series B funding round.

Who led the Series B funding round for Neural Propulsion Systems (NPS)?

The Series B funding round was led by Cota Capital.

Which companies contributed to the Series B funding round for Neural Propulsion Systems (NPS)?

GM Ventures and RTX Ventures contributed to the Series B funding round for Neural Propulsion Systems.

What is the purpose of the investment secured by Neural Propulsion Systems (NPS)?

The investment will be used to further develop and apply the Atomic Sensing Platform to automotive radar technology.

What technological advancement does NPS's software-defined radar achieve?

NPS's software-defined radar achieves near maximum likelihood performance in detection.