Basemark, a leading provider of automotive AR software that enables original equipment manufacturers (OEMs) to develop AR applications for their cars, has successfully raised €22 million in series B funding. The round was a combination of equity, grants, and loans, and was led by ETF Partners, with funding also coming from Finnish Industry Investment (Tesi), Constructor Capital, a single family office based in Zürich, Business Finland, the European Innovation Council, and private investors.
Basemark will use the capital to deepen its business with OEMs in Europe and the United States and fund its international expansion to Japan, China, and South Korea. The aim is to secure more series production deals with OEMs, and strengthen its Rocksolid AR software development tools. The company secured its first series production deal with an OEM in the United States last year and is also actively discussing with major OEMs in Europe and Asia.
Unlike its competitors, which solely focus on providing AR software development services, Rocksolid AR enables OEMs to develop AR solutions themselves by combining an AR development studio with an interconnected AR software development kit (SDK). This combination enables the efficient development of bespoke AR applications that reflect the unique brands of various OEMs.
“We are pleased to welcome new investors Tesi and Constructor Capital onboard, as well as thank our existing investor ETF for their continued support. Constructor Capital’s Founder, Serg Bell, is an exceptional entrepreneur and has founded many companies that offer synergies to Basemark. We’re excited to work together to make driving more safe and enjoyable,” said Tero Sarkkinen, Founder and CEO of Basemark.
“OEMs want to become software developers themselves because of the software-defined car megatrend. However, AR development is very slow, expensive, and tedious to learn, requiring expertise in AI, computer vision, graphics, and embedded systems. Traditional HMI development tools do not have computer vision capabilities, so there was a growing need for an AR development tool in the automotive industry. That’s why we developed Rocksolid AR, the world’s first series production-grade automotive AR development tool set capable of addressing the unique challenges of AR in the automotive industry,” Sarkkinen continued.
Most AR solutions struggle to anchor AR content to the real world. Rocksolid AR includes advanced localization and motion tracking mechanisms to ensure AR content is always anchored correctly to real-world objects and appears in the correct position in the driver’s Field of View, regardless of motion or vibration.
“In the future, as autonomous cars become the norm, we expect a significant decrease in the total number of vehicles on the road, with the majority being electric. This shift will result in a substantial reduction of emissions. Augmented reality is key to this transformation, serving as an integral component of the Software Defined Vehicle megatrend that is guiding the automotive industry toward full autonomy. Basemark is at the forefront of the AR/VR HUD technology revolution and they are perfectly positioned to help OEMs craft safer, more sustainable, and more enjoyable driving experiences for all,” commented Remy de Tonnac, Senior Partner at ETF Partners.
“Finland has produced many category-leading software companies in the world and I see Basemark having an opportunity to become one in the professional augmented reality field. Developer tools are close to my heart and I am very happy to support Basemark in its growth phase and beyond,” added Serg Bell, Founder and Chairman of the Board of Constructor Group.
In 2022, Basemark announced it has significantly contributed to BMW Group’s new iX AR applications. The company also counts several other well-known OEMs and Tier-1 companies as customers from the USA, Germany, France, Italy, and the UK.
To date, Basemark has raised €34 million in total funding and currently has operations in Helsinki, Munich, Detroit and San Francisco Bay Area. The global automotive heads-up display market size was valued at USD 1.43 billion in 2023 and is projected to hit around USD 17.43 billion by 2032, with a CAGR of 31.97% from 2023 to 2032.
