Luminar, the lidar tech firm once hailed as a rising star in autonomous driving, has secured a financing deal that could bring in up to $200 million—just weeks after a major leadership shake-up and its third round of layoffs in a year.
According to a regulatory filing on Wednesday, Luminar struck an agreement with Yorkville Advisors Global and an unnamed investor to sell convertible preferred stock over the next 18 months. The initial tranche brings in $35 million immediately, with the option to raise more—up to $35 million every 60 days—at 96% of the stock’s stated value. However, the company isn’t required to draw the full amount.
This fresh infusion comes at a critical time for Luminar. Earlier this month, its board ousted founder Austin Russell as CEO and chair, appointing Paul Ricci, the former Nuance CEO, to take the reins. The executive overhaul was followed by more layoffs, marking the company’s third workforce reduction since spring 2024.
CFO Tom Fennimore said the new financing adds flexibility and builds on their ongoing efforts to stabilize operations. “Today’s transaction provides us with additional financial flexibility and further strengthens our balance sheet,” he said, noting that restructuring moves have already extended the company’s liquidity runway.
Proceeds from the first $35 million will go toward general corporate expenses and debt repayment.
Yorkville Advisors has a track record of backing financially distressed public companies. Its past lifelines include troubled names like Lordstown Motors, Faraday Future, and Canoo—some of which have since gone bankrupt.
Luminar’s story began in 2012 when Russell launched the company as a teenager. It operated in stealth until 2017, during the peak hype around self-driving technology. By 2021, it had gone public via a SPAC merger with Gores Metropoulos Inc., reaching a post-deal valuation of $3.4 billion. Today, that valuation has plummeted to just $179 million.
Despite glimpses of success, the company has undergone repeated restructuring. In 2024 alone, Luminar slashed its workforce by 30%, with cuts continuing into early 2025. Most recently, on May 15, Luminar initiated another wave of layoffs that will cost an estimated $4–$5 million in cash charges, affecting the company’s second and third-quarter results.
While Luminar still aims to carve out a future in lidar for next-gen vehicles, its latest moves reveal a company in survival mode—leaning on investor support, cutting costs, and hoping to regain the momentum that once made it a Silicon Valley favorite.
