UPDATED 14:07 EDT / FEBRUARY 28 2018

EMERGING TECH

Self-driving car startup Aurora raises $90M to work with, not against, big automakers

Silicon Valley has almost as many self-driving cars companies as it does actual self-driving cars, but there still seems to be plenty of funding to go around — at least for now.

Palo Alto-based startup Aurora Innovation Inc. is the latest autonomous vehicle company to woo investors, and it announced today that it has closed a $90 million Series A funding co-led by Greylock Partners and Index Ventures.

Founded in January 2017, Aurora said its goal is to work with automakers rather than compete against them. Chief Executive Chris Urmson said last month that Aurora intends to develop self-driving technology alongside the vehicles as well as “seasoned automotive professionals to build a more capable technology than either can make alone.”

Aurora earned a permit to test its cars on public roads in California less than a year after the company launched, and it now operates test fleets of its self-driving cars in both California and Pennsylvania. Aurora also announced last month that it has formed partnerships with both Volkswagen AG and Hyundai Motor Co., which hope to implement Aurora’s technology in their own vehicles by 2021.

The funding announced today will allow Aurora to expand its staff and further develop its technology, but Urmson said in a blog post that the real value from the funding round comes from Greylock’s Reid Hoffman and Index Ventures’ Mike Volpi, both of whom will join Aurora’s board of directors.

“Reid is a peerless strategist who will help guide Aurora’s approach as we develop our technology, deepen our relationships, expand our partnerships, and bring self-driving technology to new markets and people,” said Urmson. “Mike is a master at building customer-focused businesses that rely on both hardware and software; his expertise and attention will help us build a global, world-class business.”

Urmson himself is likely one reason that Greylock and Index Ventures have placed their trust in the company. Before founding Aurora, Urmson had been a key figure in the creation of Alphabet Inc.’s self-driving car project, which later became Waymo.

Urmson was one of the original 15 engineers working on the project, and he served as its chief technology officer until he left in 2016. Reports suggested at the time that Urmson had butted heads with Alphabet CEO Larry Page over the direction of the self-driving car division.

Photo: Aurora

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