Luminar Reaches $200 Million Financing Agreement Amid Leadership Change
Lidar firm lines up funding with Yorkville Advisors amid recent layoffs and leadership overhaul.
Austin Russell, Founder, Luminar Technologies
ORLANDO, Fla., May 22, 2025 — Luminar, a lidar technology company that played an early role in developing sensors for autonomous vehicles, has entered a financing agreement worth up to $200 million with Yorkville Advisors Global and an unnamed investor, according to a regulatory filing published Wednesday.
The deal allows Luminar to issue convertible preferred stock over the next 18 months, starting with an initial $35 million. Additional tranches of up to $35 million may be issued every 60 days, priced at 96 percent of the stock’s stated value. The company is not obligated to offer further shares beyond the initial issuance.
The funding move comes during a period of upheaval for the Florida-based company. Earlier this month, Luminar’s board removed founder Austin Russell from his roles as CEO and board chair, replacing him with Paul Ricci, the former CEO of Nuance. The company also confirmed a fresh round of layoffs—its third since spring 2024—which began on May 15 and is expected to result in $4 million to $5 million in cash charges across the second and third quarters.
“Today’s transaction provides us with additional financial flexibility and further strengthens our balance sheet,” CFO Tom Fennimore said. “We’ve made substantial progress in extending our liquidity runway with our restructuring efforts, and the additional capital available to us under this facility provides us with another tool to realize our long-term value.”
The company said the initial $35 million in proceeds will be used for general corporate purposes and debt reduction.
Yorkville has a history of backing distressed public companies, including Lordstown Motors, Faraday Future and Canoo—all of which faced severe financial difficulties and operational setbacks.
Founded in 2012 by Austin Russell when he was a teenager, Luminar came out of stealth mode in 2017 during the peak of autonomous driving hype. In 2021, it went public via a merger with special purpose acquisition company Gores Metropoulos Inc., reaching a post-deal valuation of $3.4 billion. Today, Luminar’s market capitalization has dropped to $179 million.
The company has undergone several rounds of restructuring to stabilize operations. About 30 percent of its workforce was cut in 2024, followed by additional reductions in early 2025. The most recent round affected 212 employees, underscoring continued cost-cutting efforts in the face of financial strain.
Today’s transaction provides us with additional financial flexibility.
