SPAC Case Study-CGRO LiDAR Company

Company and Merger Overview

Innoviz Technologies is an Israeli company coming out of unit 81- A advanced secret military israeil group with cutting edge technology, that have innovated norms of the world. Innoviz produces LiDAR sensors for self-driving vehicles. ‘’Innoviz’s leading solid-state LiDAR sensors and perception software are built and priced for mass produced consumer autonomous vehicles, a market that accounts for approximately two thirds of the total addressable market for LiDAR in the near term’’.

The company is expected to go public via a merger through a special purpose acquisition company (SPAC) otherwards known as a blank check company.

Innoviz will be listed on the NASDAQ, a US stock exchange, under the ticker symbol INVZ

Products

These LiDAR sensors allow levels 2.5-5 of Autonomous driving, that are sold through the products LiDAR-1, and LiDAR-2 to tier 1 manufacturers through an OEM style. OEM is a term to describe how Innoviz’s product can be sold to consumers through/with tier 1 car manufacturers.(hand and hand). Otherwards known as an Original Equipment Manufacturer

A software that cooperates with these devices through Innoviz is their Perception software which sells data. This program allows leading objection detection, classification and tracking features, as well as collision classification, localization and calibration capabilities.

From the C.E.O of Innoviz-”the price barrier for automakers to use lidar at the present level of autonomous driving is $500 and our company’s product could meet that barrier” Innoviz is tied for pricing power being able to sell LiDAR at a price that could allow mass adoption to tier 1 manufacturers. Innoviz has two products Innoviz-1, and Innoviz-2. The BMW INext will feature Innoviz-1 technology, and then scale into Innoviz-2 catching existing and new customers, which will be on market last quarter 2021. This will allow innoviz to scale into their second product that offers a 75% price cut from the first. Not to mention two years ago ect the technology seemed more of a concept and the ability to manufacture small LiDAR technology. These devices were not cost efficient for mass adoption and current price points were unheard of. 

BMW is a big win for Innoviz, a large tier 1 partnership that is about to break into the EV/autonomous vehicle market. BMW owns: Mini cooper, and Rolls-Royce. 

Magna a chinese car manufacturer will help produce LiDAR technology this allows efficiency and tier 1s to have loyalty with their own manufacturers that they trust.

“ With over 100 years of vehicle production experience, Magna is the leading brand-independent engineering and manufacturing partner for OEMs and new entrants. Over the years, 30 different models have rolled off our production lines

Magna currently holds contracts to produce vehicles for BMW, Daimler, Jaguar Land Rover and Toyota. Our state-of-the-art facilities are capable producing vehicles with conventional, hybrid and electric powertrain”

Collision classification tree. 

LiDAR Levels of automation 2-5 

Product Relativity Segments

Consumer Vehicles:  Sold through OEM allows level 2.5-5 Autonomous driving, while being energy efficient, sold to Tier 1 car companies such as BMW, and leading chinese manufacturers: Harman(a samsung business), Aptiv and HiRain.

Robotaxis, Shuttles and Delivery vehicles: Clean solution to traffic congestion, pollution, and car related safety issues, this category can benefit global transportation and transition public transportation through LiDAR sensors.

Trucking: “Innoviz will aid in the mission of self-driving trucks and the advantages are many: reducing costs, boosting fuel efficiency, increasing productivity allowing for fewer accidents, and more” Trucking operating and maintenance cost cut into margins, using Innoviz technology can lighten these middle steps. The goal is to create detailed maps, as well as provide software to compare the point cloud image for energy efficiency. This will accelerate routes efficiently, with a main goal to cut out the driver. Allowing the LiDAR to fully understand its surroundings to fully operate on and off loads.

This can seem like a no brainer for trucking companies in the long run moving to a cleaner energy shift, and an economic improvement. Innoviz has partnered with Shaanxi Heavy Duty Automobile Co, a large chinese trucking company that manufactures over 150,000 trucks a year which are transports, and a variety of large vehicles.

Industrial Drones: “Innoviz’s high-resolution, resilient LiDAR sensors and perception software enable UAVs to operate autonomously and avoid obstacles — night or day, rain or shine. 

Innoviz’s LiDAR solutions can safely operate in skies 24/7 to verify that no parcel goes undelivered” Drones can be used in a variety of applications and are just another component that LiDAR can produce from agricultural uses allowing farmers to have a higher ROI on crops to infanstructure and allowing drones to do the heavy lifting with delivery goods.

” According to Walmart, drones flying through the warehouse can do a full inventory check in a day, a task that currently takes a month for people to do manually.” Drones are able to carry an array of applications, more than just the common delivery theme they allow efficiency and can be scaled up in the future. 

Heavy Machinery(interlocks with industrial drones): Innoviz’s high-resolution LiDAR technology can be used to map out a construction or mining site  It returns multiple reflections per pixel and is resilient to ambient conditions, which is critical for worker and pedestrian safety. These sites are otherwise hard to navigate due to dust, extreme weather and obstacles (i.e. debris, uneven terrain)

“Perception software is a practical barrier to entry to many companies that are developing LiDAR technology. It takes a very long time to develop and validate, and for many providers seeking ADAS, L2 and L3 autonomy, it does not make economic sense to create this software on their own” it can require millions of miles to get safety certifications for autonomous vehicles. It is easier for tier 1 companies to adopt technology at economically positive margins rather than years of R/D, cutting into them.

“Velodyne LIDAR competitor..

“Hello, yes the sensors are rotational

The longest range sensor can detect up to 245 m and the range accuracy is +/- 3m”

(to go into more detail)

(needing to compare spinning LiDAR and solid state LiDAR)-from what ive seen spinning LiDAR is more prone to error from environmental factors and cannot be seen directly in front of the car-1m. Also spinning LiDAR usually gives a declining aesthetic impact.

On a study using a 5MW using spinning LiDAR-

Initial results have illustrated the problems that can be caused by coherent turbulence events and an example of the large measurement errors

“The SPAC provided $150 million in cash and raised $200 million from investors in the deal that gives the combined company a $1.4 billion equity value” quantitative deal 

Innoviz LiDAR technology 2016-2020 Comparison/advancement

Image

CEO has announced merger is upcoming and proposed to occur end of March.

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