Boston-based startup Teradar announced on Wednesday that it has raised $150 million in new funding and introduced its “terahertz-vision” sensor, which it says could transform the automotive radar and lidar market.
The company claims the new technology delivers lidar-level resolution and radar-grade durability at a lower cost, providing a compact, bumper-mounted solution that functions reliably through rain, snow, and dust.
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The funding round was led by VXI Capital, with participation from IBEX Investors, Capricorn Investment Group, The Engine Ventures, and Lockheed Martin Ventures, according to a report by Reuters. “By 2030, it’s a $20 billion market,” said CEO Matt Carey, adding that automakers are seeking sensors that “can finally make hands-free driving safe and affordable.”
Teradar said it is already working under paid development programs with five major automakers in the U.S. and Europe and expects its first production vehicle integration in 2028. Carey highlighted that the company’s fully solid-state design, built using standard silicon components, enables costs comparable to imaging radar while offering 20 times higher resolution. “Our goal is to give every vehicle, not just luxury ones, lidar-level perception that works in all weather,” he told Reuters.
The sensor can be configured for both near- and long-range detection and supports a range of driver-assistance and autonomous driving systems. Its behind-the-bumper installation and lack of moving parts allow automakers to replace existing radar units without altering body design.
While some manufacturers, such as Tesla, have favored camera-only approaches for cost and efficiency, others like Alphabet’s Waymo continue to use multiple sensor types. Teradar says its terahertz-based solution bridges this divide and could also serve defense, security, and industrial applications beyond the automotive sector.