Velodyne Lidar is a leading manufacturer of lidar sensors for autonomous vehicles. It became the first public pure-play lidar company by merging with special purpose acquisition company (SPAC) Graf Industrial Corp in 2020. The combined company was named Velodyne Lidar and trades under the ticker VLDR. Graf Investments provided an alternative path to public markets for Velodyne through the SPAC merger. The deal allowed Velodyne to raise significant capital from Graf’s shareholders to fund its growth plans in the dynamic autonomous vehicle market.
Graf Investments merged its SPAC with lidar leader Velodyne
In 2020, Graf Industrial Corp was a SPAC searching for a private technology company to merge with and take public. It ultimately announced a deal to combine with Velodyne Lidar, which makes light detection and ranging (lidar) sensors. These sensors are considered essential for autonomous vehicles to map their surroundings. With strong backing from companies like Baidu, Ford, and Nikon, Velodyne was a leader in the emerging lidar industry. By merging with Graf Investments’ SPAC, Velodyne gained access to public markets and capital to continue developing its innovative lidar technologies.
The SPAC deal provided growth funding for Velodyne Lidar
As part of the merger agreement, Graf Investments’ shareholders committed $150 million in equity financing to Velodyne Lidar. This influx of capital would help the lidar company expand manufacturing and meet rising demand for its sensors. With increasing investment pouring into autonomous vehicle development, accurate environmental mapping and perception were critical areas. Velodyne sought to solidify its first-mover position with advanced lidar capabilities. The SPAC transaction with Graf Investments gave Velodyne the resources to accelerate R&D and partnerships with autonomous vehicle makers.
Velodyne gained public company status through Graf Investments
Prior to merging with Graf Industrial Corp, Velodyne Lidar was a private corporation. Becoming a publicly traded company on the NASDAQ stock exchange provided greater access to capital markets over time. This was important for a hardware firm operating in a rapidly evolving industry requiring large, ongoing R&D expenditures. Additionally, the high profile public listing drew greater attention to Velodyne’s industry leadership from investors and media. Overall, Graf Investments delivered on its purpose by sponsoring the Velodyne Lidar SPAC merger and taking the lidar sensor company public in 2020.
In summary, Graf Investments was the special purpose acquisition company that facilitated lidar leader Velodyne Lidar’s public market debut in 2020. The SPAC deal enabled Velodyne to raise $150 million from Graf shareholders to fund growth as demand rises for its sensors from autonomous vehicle makers.