Ouster Inc., a San Francisco-based hardware startup backed by $27 million in funding, today launched from stealth mode to carve out a niche for itself in the crowded LiDAR market.

LiDAR, which stands for Light Detection and Ranging, is the method companies such as Alphabet Inc. use to help their autonomous vehicles navigate the roads. A LiDAR device continuously emits laser beams in a circular pattern using the same basic principle as echolocation. The pulses bounce back into an optical sensor, producing numerous data points that are pieced together into a map of a car’s surroundings.

Ouster offers a compact LiDAR system called OS1 (pictured). Shaped like a flat cylinder, the device weighs just 250 grams and “matches the resolution of the highest performing automotive LiDAR technology” in the industry, according to the startup. The details on its website suggest that this refers to the HDL-64E model from market leader Velodyne LiDAR Inc.

Ouster’s system doesn’t match its competitor on every count: The HDL-64E’s maximum range is 20 percent greater and it’s accurate to about 2 centimeters (about 0.78 inches), while the OS1 only goes down to about 3. Moreover, Velodyne recently debuted a newer model that has even better specifications.

But Ouster’s platform does possess one big advantage: It’s much more accessible. The OS1 is considerably smaller than the HDL-64E and costs $12,000, about five times less. This could make the system more attractive for automakers looking to produce mass-market autonomous vehicles, which would need to prioritize affordability.

Ouster is one of several players seeking to provide a cheaper LiDAR option. Fellow startup Luminar Technologies Inc. is tackling the challenge too, as is Velodyne itself. The company offers a system called the Ultra Puck that isn’t as powerful as the HDL-64E, but could potentially cost less than $500 if produced in large quantities.

The $27 million that Ouster has raised should put it in a better position to take on the competition. The round was led by media giant Cox Enterprises Inc., which has several subsidiaries that operate in the auto market. Fontinalis Partners, Constellation Technology Ventures and a few other venture capital firms participated in the round as well.

Ouster will use the capital to ramp up operations. The startup plans to more than double its current headcount to 100 employees over the next year, as well as develop new sensor designs and add manufacturing capacity.

Image: Ouster