Edge data processing startup Teraki GmbH said today it has raised $11 million in new funding to accelerate its move into the automotive electronics market and expand into other sectors that are facing a rise in data demands.

The venture capital round was led by Horizons Ventures and included State Auto Labs Fund, Bright Success Capital, Castor Ventures, Paladin Capital Group and innogy Ventures.

Founded in 2015, Teraki offers edge data solutions for connected cars, telematics and autonomous car applications. The company’s artificial intelligence-powered edge data processing software is designed to make applications and algorithms run more efficiently in cars and “internet of things” devices while preserving data quality and accuracy required for training and running machine learning models.

Teraki’s software operates by identifying the most relevant data already at the embedded side and transmits this data in the most compact form possible. It does so while maintaining the customer’s key performance indicators based on AI data processing schemes. The software delivers low-latency service-level agreements as required by the user while adapting key KPIs such as cost-per-mile at the highest precision and lowest latency, the company said.

With the new funding, Teraki plans on expanding into the support of broader IoT devices, drones, robotics and other markets that require efficient edge data processing. The company currently has partnerships with Microsoft Corp. and Infineon Technologies AG.

“We will use these funds to propel Teraki into new areas outside of automotive with significant recurring revenues as clients start large-scale deployments of our technology,” Daniel Richart, co-founder and chief executive officer of Teraki, said in a statement.

Teraki’s particular focus on edge data processing in IoT devices taps into a rapidly growing market that is set to grow further as 5G connectivity is rolled out. According to Statista, the number of IoT device is expected to grow from 23.14 billion in 2018 to 75.44 billion in 2025, all of those devices having to process data at various levels.

Including the new funding, Teraki has raised $16.1 million to date.

Image: Teraki/LinkedIn