RCS - Tekcapital plc - Portfolio Company Update - Guident Ltd

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22/11/2024 07:00

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RNS Number : 2382N  Tekcapital plc  22 November 2024

 

22 November 2024

Tekcapital plc

 ("Tekcapital" or the "Company")

Portfolio Company Update: Guident Ltd

 

Tekcapital Plc (AIM: TEK) the UK intellectual property investment group
focused on creating valuable products that can improve people's lives, is
pleased to provide updates on portfolio company Guident Ltd ("Guident").

Guident has made significant progress in the last few months as follows:

 

·    Jacksonville Transportation Authority issued a contract extension for
several Guident AV projects.

·    Upcoming planned RMCC Deployments at Michigan State University and
University at Buffalo are under negotiation.

·    Proposal submitted for an Autonomous Vehicle, including RMCC for the
City of Peachtree Corners, Georgia, USA.

·    Three proposals were submitted for Guident's Autonomous Surveillance
and Inspection Robot monitoring service

·    Various Teleoperation proposals are being made in the USA, Asia, and
Europe.

·    Implemented Redundant Multi-Network connectivity between Private and
public Mobile Networks based on 4G/5G, Satellite GEO, and LEO orbits.

·    Enhanced User Interface (UI/UX) for Multi-Vehicle and Multi-AV Fleets

·    Integrating advanced Safety with AI-Based Incident Risk Level (IRL)
Algorithms

·    Demonstrated cross-ocean low-latency remote operation of an AV in the
US controlled by an RMCC in Europe.

 

The adoption of autonomous vehicles (AVs) across the United States is
accelerating, and Guident welcomes the accompanying regulatory developments
that put the safety of passengers and the public at the forefront of
autonomous vehicle fleet rollouts.

 

Market Traction and Strategic Outlook

·    The Total Addressable Market (TAM) for automotive active safety
systems (which includes Driver Monitoring) is projected to exceed $25 billion
by 2030(( 1  (#_ftn1) )).

·    Autonomous vehicles are expected to transition from embryonic to the
beginning of mainstream adoption across global markets. Waymo LLC is now
providing 150,000 paid AV trips a week(( 2  (#_ftn2) )) and Tesla, Inc. is
planning to launch its robotaxi service in 2026 (( 3  (#_ftn3) )).

·    Safety remains pivotal to the adoption of AVs for all stakeholders,
including government bodies, manufacturers, consumers, technology developers,
and AV fleet operators.

·    Guident believe that in the future all autonomous vehicles are likely
to be mandated to utilise remote monitoring and control. Many states including
California, Florida, Michigan, Arizona, Nevada, and Louisiana already require
remote monitoring and control of AVs, with additional states and federal
legislation likely to follow suit.

·    Guident believes that they are well positioned to play a significant
role in the AV ecosystem and the safe scale-up of AVs with their first fully
operational, ultra-low latency remote monitor and control teleoperations
center with back-up low earth orbit satellite monitoring.

 

Clifford M. Gross, Ph.D., Executive Chairman of Tekcapital plc, commented:

 

"We are very excited about the recent progress of Guident and the performance
of its leadership. We believe the timing for Guident's potential IPO next year
is quite opportune considering the transformative capital market events in the
AV industry during the past sixty days. We are looking forward to Guident
realising its first mover advantage in the rapidly developing AV industry and
the potential contribution it can make to saving lives."

 

Market Overview

·    AV landscape: Key regions (North America, Europe, Asia-Pacific) are
driving AV adoption due to technological advancements, supportive legislation,
urbanization trends, improved safety measures, and enhanced mobile
connectivity solutions. From passenger vehicles to fleets of AV shuttles,
deployment is increasing at a rapid pace.

·    Growth drivers: Urban mobility needs, increasing investment in AV
infrastructure and technology, and regulatory mandates for enhanced safety
measures.

·    Challenges: Safety concerns remain at the forefront of regulatory and
consumer perception. Incidents during AV testing have underscored the need for
reliable human oversight and responsive control mechanisms(( 4  (#_ftn4) )).
Widespread understanding of need for "human in the loop" monitoring and
remotely controlling a vehicle when edge cases occur.

·    Guident's Role: Positioned to capitalise on a critical gap in the
ecosystem by addressing remote monitoring and emergency intervention
requirements.

 

The Need for Safety in AV Deployment

 

·    Regulatory Mandates: a number of states in the USA already require
remote monitoring and control AVs as a condition for allowing AVs on their
roads. A major recent milestone with California passing such a requirement in
September 2024(( 5  (#_ftn5) )).

·    Liability Risk: Manufacturers and AV fleet operators face legal and
reputational risks due to accidents. Remote monitoring and control centers
mitigate these risks by providing immediate human intervention capabilities,
helping lower premium costs for insurance.

·    Public Trust: Safety enhancements foster public confidence in AVs,
accelerating adoption.

 

Guident: Addressing Critical Safety Gaps

·    Guident provides competitive advantages for AV operators through
AI-powered Remote Monitor and Control Centers (RMCC) - pictured below.

 

 

·    The patent-protected RMCC platform (patents listed below) monitors
and controls AVs, delivery devices, and robots using secure, ultra-low-latency
connectivity, backed by space satellite connectivity, to resolve unforeseen
situations: deadlock situations, navigation errors, accidents.

 

 

·    AV operators benefit from a centralized monitoring system, reducing
the need for costly in-vehicle redundancy systems. The solution also enables
passenger communication with the RMCC.

·    Cloud-native architecture supports rapid scaling across geographies
and fleets. Led by an experienced management team with former Siemens, General
Motors, Volkswagen, and Zipcar senior management experience.

·    Guident deployed its first commercial RMCC placement in the USA, with
Jacksonville Transportation Authority as its first customer.

·    Guident has received two Space Florida grants.

·    Guident will seek to rapidly scale customer adoption utilizing a VAR
model with vehicle manufacturers offering the Guident service as a
pre-installed option in their shuttles, buses, security robots and other
vehicles. Two bus manufacturers already have signed agreements to incorporate
Guident's software in the vehicles upon customer delivery.

 

AV Market Funding

There has been a recent increase in AV funding activity, including the first
Nasdaq AV IPO of WeRide, which illustrates both the technological and capital
markets traction in the AV space.

-     WeRide IPO: The total proceeds from the public offering and the
concurrent private placement are expected to amount to $458.5 million 6 
(#_ftn6)

-     Waymo LLC Funding Round: Raised $5.6 billion from investors, its
largest-ever funding round 7  (#_ftn7)

-     Pony.ai Public Filing: Plans to raise $200 million at a $4 billion
valuation 8  (#_ftn8)

-     Tesla Robotaxi Launch: Major industry development 9  (#_ftn9) .

 

The valuation of Tesla, Inc. has increased in recent months as investors are
encouraged about the potential of forthcoming federal approvals for autonomous
vehicles.(( 10  (#_ftn10) ))

Summary

The global rollout of autonomous vehicles represents a transformative
milestone in transportation, with widespread deployment anticipated in next
few year. The industry's growth is driven by technological advancements, urban
mobility demands, and increasingly stringent safety regulations. However, the
success of this transition hinges on addressing critical challenges, including
public trust, safety concerns, and the need for reliable oversight mechanisms.

Tekcapital believe that Guident is well positioned to play a pivotal role in
the evolving AV ecosystem by addressing these safety gaps through its patented
Remote Monitor and Control Center (RMCC) platform. With its ultra-low-latency
teleoperations solution and satellite backup, Guident not only enhances AV
safety and public confidence but also provides a scalable, cost-effective
solution for operators to meet regulatory mandates and mitigate liability
risks.

Guident's investment thesis is simple: All autonomous vehicles will require
accurate, low-cost remote monitoring and control to enhance occupant and
pedestrian safety.

Guident's lean SaaS business model, strategic partnerships, and growing
customer base underscore its readiness to capitalize on this opportunity.

As autonomous vehicles move closer to mainstream adoption, Tekcapital believes
that Guident's innovations, focus and management experience will help to
ensure the safety, reliability, and scalability necessary for this next phase
of mobility, marking the company as a potential critical enabler of the AV
revolution.

Tekcapital owns 100% of the share capital of Guident Ltd. Guident
Ltd. owns approximately 91% of Guident Corp., its US subsidiary, and 100%
of Revive Energy Solutions Ltd, its UK subsidiary.

 

About Tekcapital plc

Tekcapital creates value from investing in new, university-developed
discoveries that can enhance people's lives. Tekcapital is quoted on the AIM
market of the London Stock Exchange (AIM: symbol TEK) and is headquartered in
the UK. For more information, please visit www.tekcapital.com
(http://www.tekcapital.com) .

LEI: 213800GOJTOV19FIFZ85

For further information, please contact:

 

 Tekcapital Plc                                                                         Via Flagstaff
 Clifford M. Gross, Ph.D.

 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)                          +44 (0) 20 3470 0470
 Richard Morrison/Charlie Bouverat (Corporate Finance)
 Richard Parlons/Abigail Wayne (Corporate Broking)

 Flagstaff Strategic and Investor Communications                                        +44 (0) 20 7129 1474
 Tim Thompson/Andrea Seymour/Fergus Mellon

 

 

 

General Risk Factors and Forward-Looking Statements

 

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Investors must rely on their own examination of the legal, taxation, financial
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directors, officers, employees or agents for the accuracy or completeness of
such information.

 

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for any such errors or omissions. or opinions or for any errors or
Intellectual Property Risk Factors.

 

Tekcapital's mission is to create valuable products from university
intellectual property that can improve people's lives.  Therefore, our
ability to compete in the market may be negatively affected if our portfolio
companies lose some or all of their intellectual property rights, if patent
rights that they rely on are invalidated, or if they are unable to obtain
other intellectual property rights. Our success will depend on the ability of
our portfolio companies to obtain and protect patents on their technology and
products, to protect their trade secrets, and for them to maintain their
rights to licensed intellectual property or technologies. Their patent
applications or those of our licensors may not result in the issue of patents
in the United States or other countries. Their patents or those of their
licensors may not afford meaningful protection for our technology and
products. Others may challenge their patents or those of their licensors by
proceedings such as interference, oppositions and re-examinations or in
litigation seeking to establish the invalidity of their patents. In the event
that one or more of their patents are challenged, a court may invalidate the
patent(s) or determine that the patent(s) is not enforceable, which could harm
their competitive position and ours. If one or more of our portfolio company
patents are invalidated or found to be unenforceable, or if the scope of the
claims in any of these patents is limited by a court decision, our portfolio
companies could lose certain market exclusivity afforded by patents owned or
in-licensed by us and potential competitors could more easily bring products
to the market that directly compete with our own. The uncertainties and costs
surrounding the prosecution of their patent applications, and the cost of
enforcement or defence of their issued patents could have a material adverse
effect on our business and financial condition.

 

To protect or enforce their patent rights, our portfolio companies may
initiate interference proceedings, oppositions, re-examinations or litigation
against others. However, these activities are expensive, take significant time
and divert management's attention from other business concerns. They may not
prevail in these activities. If they are not successful in these activities,
the prevailing party may obtain superior rights to our claimed inventions and
technology, which could adversely affect their ability of our portfolio
companies to successfully market and commercialise their products and
services. Claims by other companies may infringe the intellectual property
rights on which our portfolio companies rely, and if such rights are deemed to
be invalid it could adversely affect our portfolio companies and ourselves as
investors in these companies.

 

From time to time, companies may assert patent, copyright and other
intellectual proprietary rights against our portfolio company's products or
technologies. These claims can result in the future in lawsuits being brought
against our portfolio companies or their holding company. They and we may not
prevail in any lawsuits alleging patent infringement given the complex
technical issues and inherent uncertainties in intellectual property
litigation. If any of our portfolio company products, technologies or
activities, from which our portfolio companies derive or expect to derive a
substantial portion of their revenues and were found to infringe on another
company's intellectual property rights, they could be subject to an injunction
that would force the removal of such product from the market or they could be
required to redesign such product, which could be costly. They could also be
ordered to pay damages or other compensation, including punitive damages and
attorneys' fees to such other company. A negative outcome in any such
litigation could also severely disrupt the sales of their marketed products to
their customers, which in turn could harm their relationships with their
customers, their market share and their product revenues. Even if they are
ultimately successful in defending any intellectual property litigation, such
litigation is expensive and time consuming to address, will divert our
management's attention from their business and may harm their reputation and
ours.

 

Several of our portfolio companies may be subject to complex and costly
regulation and if government regulations are interpreted or enforced in a
manner adverse to them, they may be subject to enforcement actions, penalties,
exclusion, and other material limitations on their operations that could have
a negative impact on their financial performance. All of the above-listed
risks can have a material, negative affect on our net asset value, revenue,
performance and the success of our business and the portfolio companies we
have invested in.

 

 

 

- Ends -

 

 1  (#_ftnref1) The automotive active safety system market includes adaptive
cruise control, antilock braking system, lane departure warning, blindspot
detection, tire-pressure monitoring system, driver monitoring and night vision
systems.
https://www.grandviewresearch.com/industry-analysis/automotive-active-safety-system-market-report

 2  (#_ftnref2)
https://www.theverge.com/2024/10/29/24283127/waymo-now-does-150000-paid-trips-per-week

 3  (#_ftnref3)
https://techcrunch.com/2024/10/23/tesla-is-testing-a-robotaxi-service-that-elon-musk-claims-will-launch-next-year/

 4  (#_ftnref4)
https://abc7news.com/cruise-autonomous-cars-gm-recall-sf-robotaxi-software-update/14026840/

 5  (#_ftnref5)
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB1777

 6  (#_ftnref6)
https://markets.businessinsider.com/news/stocks/the-world-s-first-ipo-of-universal-autonomous-driving-technology-company-weride-officially-listed-on-nasdaq-1033900958

 7  (#_ftnref7)
https://fortune.com/2024/10/25/waymo-evs-raises-56-billion-largest-ever-funding-round/

 8  (#_ftnref8)
https://techcrunch.com/2024/10/19/four-takeaways-from-pony-ais-ipo-filing/

 9  (#_ftnref9)
https://techcrunch.com/2024/10/23/tesla-is-testing-a-robotaxi-service-that-elon-musk-claims-will-launch-next-year/

 10  (#_ftnref10)
https://seekingalpha.com/news/4301537-tesla-soars-as-investors-bet-on-an-easy-ride-for-federal-approvals-on-autonomous-vehicles

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