Luminar Secures $200M in Funding Despite Leadership Shakeup

Lidar technology company Luminar has announced a deal with Yorkville Advisors Global and another unnamed investor for up to $200 million in funding. This comes through the sale of convertible preferred stock over an 18-month period. The agreement follows a recent change in leadership and further layoffs.

Earlier this month, Luminar's board replaced founder Austin Russell as CEO and board chair, appointing Paul Ricci, former chairman and CEO of Nuance. This leadership transition coincided with Luminar's third round of layoffs since spring 2024.

Funding Details and Use of Proceeds

The agreement allows Luminar to initially issue $35 million in convertible preferred stock. Additional tranches of up to $35 million can be issued every 60 days at a purchase price of 96% of the stated value. However, Luminar is not obligated to issue the full $200 million.

“This transaction provides us with additional financial flexibility and further strengthens our balance sheet,” said Luminar CFO Tom Fennimore. “We’ve made substantial progress in extending our liquidity runway with our restructuring efforts, and this additional capital provides another tool to realize our long-term value.”

Luminar plans to use the initial $35 million for general corporate purposes and debt retirement.

Yorkville's History with Struggling Companies

Yorkville Advisors Global has a history of providing financial lifelines to struggling publicly traded companies. Previous recipients include Lordstown Motors and Faraday Future, as well as the now-bankrupt Canoo.

Luminar's History and Challenges

Founded in 2012 by then-teenager Austin Russell, Luminar gained prominence in the autonomous vehicle space. The company went public in 2021 via a SPAC merger with Gores Metropoulos Inc., achieving a $3.4 billion valuation. However, its market cap has since decreased to $179 million.

Despite some successes, Luminar has faced challenges and undergone multiple restructuring efforts, including significant layoffs in 2024 and 2025. These recent layoffs are expected to incur $4 million to $5 million in charges.

For more information on the funding agreement, please refer to the regulatory filing.

Learn more about Austin Russell's departure here and the previous layoffs here.

Read about Luminar's debut here, Lordstown Motors' deal with Yorkville here, and Faraday Future's agreement here.