Aurora Innovation Inc. last week said it expected to raise a total of $820 million to continue developing and commercializing its autonomous trucks. The Pittsburgh-based company had offered more than 73.3 million shares of Class A common stock at $3 per share and granted underwriters a 30-day option to purchase up to an additional 10.9 million shares.
Aurora said it plans to use its latest funding to continue developing its self-driving technology toward commercialization.
“This huge amount of funding gives us the runway through next year’s expected commercial launch and well into 2025,” wrote Chris Urmson, co-founder and CEO of Aurora, in a blog post. He also acknowledged the challenge of obtaining venture capital in the current economic environment.
“We’re all living through an uncertain time in the financial markets,” Urmson said. “Despite some thaw, investors continue to be very cautious with their clients’ money, wanting an extra degree of conviction to make a big bet. It’s part of why we’re proud to be able to raise the better part of a billion dollars to continue our mission. Investors see what we see – an incredible and unique opportunity to do something important and valuable in the world.”
Aurora Driver stays on track
Founded in 2017, Aurora said its technology is intended “to make transportation safer, increasingly accessible, and more reliable and efficient than ever before.” The Aurora Driver is designed to operate multiple vehicle types, from freight-hauling trucks to ride-hailing passenger vehicles.
The company added that Aurora Driver is the basis of driver-as-a-service products—Aurora Horizon for trucking and Aurora Connect for ride hailing. Urmson noted that Aurora has continued to follow the product roadmap it described last year.
In December 2022, Aurora and Uber Freight announced a dedicated lane for self-driving trucks between Fort Worth and El Paso in Texas. While Argo shut down last year, Aurora and other autonomous trucking developers have continued their work and fundraising.
In addition, Aurora has successfully partnered with vehicle makers Volvo Trucks, PACCAR, and Toyota, as well as hardware-as-a-service provider Continental, Urmson said. He cited FedEx, Uber Freight, Werner, Schneider, and Hirschbach are pilot customers.
The company reached “feature complete” status in April, and Urmson said he expects it to reach “Aurora Driver Ready” by the end of 2023. That milestone will include validating software, hardening software, and proving that autonomous trucks can safely haul freight between Dallas and Houston without human drivers.
Aurora plans to have a full prototype of its FirstLidar system on a chip for long-range sensing at highway speeds by the end of this year. Urmson added that it is developing the proprietary Virtual Testing Suite for simulated “testing at a scale and cost we couldn't achieve in the physical world.”
Aurora is still on track to launch its offering commercially next year, wrote Urmson.
Funding to fuel partnerships, hiring
Aurora said in a statement that it expected gross proceeds of about $220 million from the public offering. In addition, the company offered 222 million shares of its Class A stock at $2.70 per share through private placement with existing investors for aggregate gross proceeds of $600 million.
The fundraising is subject to customary closing conditions, and Goldman Sachs & Co. and Allen & Co. were joint running managers and placement agents. Aurora filed a Form S-3 statement with the U.S. Securities and Exchange Commission (SEC).
“This capital raise represents a tremendous endorsement and the market’s faith in Aurora’s ability to deliver,” said Urmson. “Our position continues to strengthen as we execute and build our coalition of partners.”
The company, which raised close to $1 billion in a special-purpose acquisition company (SPAC) merger in 2021, is currently hiring.
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