Hey followers! Today, let’s dive into the latest news about Luminar, the lidar tech startup making headlines.

Earlier this month, Luminar struck a deal with Yorkville Advisors and an unidentified investor, which could bring an extra $200 million into its coffers over the next 18 months via convertible preferred stock sales. This deal was revealed through a regulatory filing and comes after sudden leadership changes and layoffs at the company.

Founder Austin Russell was replaced as CEO and chair by Paul Ricci, the ex-Nuance boss. The company also announced another round of layoffs, its third since spring 2024, impacting over 200 employees. Under the agreement, Luminar plans to issue $35 million in convertible stock, with possible additional tranches, but only if the company chooses to do so every 60 days.

According to CFO Tom Fennimore, this new funding provides vital financial flexibility and bolsters Luminar’s balance sheet. The initial funds are earmarked for general costs and debt repayment, as Luminar works to extend its cash runway. Yet, this isn’t the company’s first financial rough patch; Luminar had previously raised $250 million before merging with Gores SPAC and had its market value drop from $3.4 billion to about $179 million.

Founded in 2012 by Russell when he was a teenager, Luminar emerged as a major player in autonomous vehicle lidar tech. Despite some successes, it faced multiple restructuring efforts, including layoffs and a valuation decline. The latest chapter involves a crucial push for liquidity while navigating leadership upheaval and a challenging market environment.

Most recently, Luminar replaced its founder and appointed a new CEO amidst financial stress, while continuing to seek funds to stay afloat. The company remains a key name to watch in the transportation tech sphere, especially with upcoming industry events like TechCrunch Sessions: AI.