Back
~
1
min read
· Posted on
March 25, 2024

Baraja's self-driving dreams hit a dead end as investors write down their valuation to zero

Blackbird has now marked its valuation of Baraja down to zero.

What's the key learning?

  • Baraja struggled due to its very ambitious plans that engineers were finding hard to execute.
  • There was a time when self-driving cars were all the rage; however, at the moment, car makers are slowing down their own adoption of autonomous technology.
  • Beware of the hype cycle and its vicious ups and downs.

👉 Background: Baraja is a company that makes lasers that help self-driving cars "see"...as if they have eyes. In 2021, Baraja was valued at $300 million. Back then, it was losing money despite receiving almost $50 million from Australian VC firm, Blackbird.

👉 What happened: Blackbird has now marked its valuation of Baraja down to zero, according to sources close to Blackbird.

👉 What else: Just last month, Baraja raised a further $30 million to cover its operating costs, but made 75% of its staff redundant. Baraja struggled due to its very ambitious plans that engineers were finding hard to execute.

What's the key learning?

💡Beware of the hype cycle and its vicious ups and downs.

💡There was a time when self-driving cars were all the rage. It's predicted that by 2035, autonomous driving could create $300 - $400 billion in revenue. But, at the moment, car makers are slowing down their own adoption of autonomous technology.

💡There isn't much glory in creating self-driving car technology when actual car makers and brands have reduced their demand. And, naturally, this slowdown has been bad news for Baraja... and even worse for Baraja's investors.

‍

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
No items found.