Matt Carey, the CEO of Boston-based startup Teradar, thrives on disbelief. When potential investors or partners tell him “I don’t believe you,” he considers it a success – right where he wants them to be.
Why? Because Teradar isn’t building just another sensor. They’re developing a solid-state device that operates in the terahertz band of the electromagnetic spectrum, occupying the space between microwaves and infrared light. This allows their technology to combine the strengths of both radar and lidar, offering long-range detection capabilities similar to radar but with the high-resolution detail offered by laser-based lidar systems – a feat previously unheard of at this scale.
This seemingly impossible combination understandably breeds skepticism. Can a sensor really achieve all that? Carey acknowledges this, often countering doubt with live demonstrations. A memorable one took place last year at CES in Las Vegas. Standing outside the Westgate Hotel, Carey pointed an early version of the Teradar sensor at crowds, showcasing its ability to instantly analyze and differentiate individuals within the throng as representatives from major automakers observed.
These demos have proven persuasive enough to secure a $150 million Series B funding round led by Capricorn Investment Group, Lockheed Martin’s venture arm, IBEX Investors (focused on mobility), and VXI Capital, a new fund specializing in defense technology backed by former U.S. military Defense Innovation Unit CTO.
Teradar is already working with five leading automakers from both the U.S. and Europe to validate their technology and aims to land a contract placing its sensors within a 2028-model vehicle, requiring production readiness by 2027. The company is also collaborating with three Tier 1 suppliers for manufacturing.
The immediate goal is equipping automakers’ vehicles with Teradar’s sensors for advanced driver assistance systems and even self-driving capabilities. Teradar’s “modular terahertz engine” – as the sensor is formally known – can be adapted to different applications, and Carey emphasizes its affordability, pricing somewhere between current radar and lidar solutions (a few hundred dollars rather than thousands). This accessibility is crucial for widespread adoption, a point highlighted by Carey when he mentions that attaching a $1,000 lidar to his everyday Ford Focus isn’t feasible.
This ambitious venture was sparked by a personal tragedy. Carey recounts being inspired to start Teradar after a friend died in a car accident where existing sensor technology – hampered by sunlight and fog – failed to provide sufficient visibility. This incident, coupled with Carey’s pre-existing interest in autonomous vehicle technology while working for an automaker, led him to connect with Gregory Charvat, CTO of spatial sensor company Humatics.
Charvat shared his long-held desire to image using terahertz frequencies, and together they launched Teradar with the MIT nonprofit incubator The Engine leading their seed round. While Teradar’s technology holds potential for other sectors like defense (evidenced by its high-profile investors), the company is currently laser-focused on automotive applications.
The field of terahertz technology isn’t new; there has been academic research and prior commercial attempts, but primarily within industrial or security contexts. Carey believes recent breakthroughs in silicon technology combined with a team of dedicated experts – including co-founder Nick Saiz, whom Carey calls “the world’s best terahertz chip designer” – have propelled Teradar to the forefront.
Winning over skeptics and securing crucial resources from automakers has been no easy feat. As Carey explains, it takes significant effort to gain their attention, secure funding, and access valuable test track time. This signifies a major validation for Teradar’s technology, demonstrating that industry giants now see its potential – they believe him.
