GCIGuident and Novelsat receive grant to develop satellite-based remote monitoring system for autonomous vehicles
(), an intellectual property investment group, updated markets on its US-based wholly-owned portfolio company Guident which is developing a remote monitoring and control architecture to improve the safety of autonomous vehicles, as well as a regenerative shock absorber system to improve EV efficiency.
Tekcapital announced that Guident has been awarded funding from Space Florida for a project under the Florida-Israel Innovation Partnership program, together with partner Novelsat. The project will see the two companies develop a safer Remote Monitoring and Control Center (RMCC) for the monitoring, management, and backup control of autonomous vehicles, with the assistance of satellite communications.
The addition of satellite connectivity to Guident's RMCC will provide redundant, continuous monitoring of autonomous vehicle fleets. Space communications can provide a mobile network connectivity alternative in areas with low signal or no terrestrial mobile wireless network coverage.
The project is scheduled to commence in July 2023.
"Guident is privileged to have the invaluable support and guidance of Space Florida with their unrivaled experience and strategic location for this new initiative" said Dr. Gabriel Castaneda, Guident's Vice President for AI and Research. "This funding will help propel us forward as we embark on the development and scale of an effective Remote Monitoring and Control Solution with enhanced vehicle safety, together with our Israeli Partner NOVELSAT."
Originally announced in February, Guident's partnership with Israel-based Novelsat should give the former a competitive advantage over remote systems that rely on terrestrial connectivity only by adding an always-on, low earth orbit monitoring solution for its remote monitoring and control centres. Having secured funding from Space Florida (an aerospace and spaceport development authority in Florida), the two companies can now commence the project next month.
Earlier this week, Guident received a new US patent related to its proprietary technology for remote control and monitoring (RMCC) of autonomous vehicles. Guident's RMCC features a cloud-based software solution that links human operators to autonomous vehicle (AV) fleets. The operators continuously monitor their assigned AV fleets in case they need to intervene in certain edge cases.
Automated supervision and safety driver roles will be critical for decades for all levels of vehicle automation before reaching full autonomy SAE level 5. RMCC-type technology is quickly becoming a legal requirement in multiple US states and other countries. All types of vehicles can benefit from the technology, including passenger road vehicles, agricultural equipment, mining equipment, and unmanned military vehicles.
According to Triton Market Research, "the last mile AV autonomous vehicle delivery market is expected to reach $41.7 billion by 2028 with a CAGR of 19%". Contactless delivery has been in high demand since the Covid-19 pandemic, which Guident believes will accelerate the rollout of land-based delivery drones where its Remote Monitor and Control Center system can shine.
Guident's valuation has increased steadily since Tekcapital's initial investment in 1H 2018, reaching £20m in just 4 years:
We see Tekcapital as significantly undervalued at the moment. Tekcapital's NAV per share was adjusted to US$0.38 (31p) at the end of FY22 while its current share price is 11p. There is significant potential for growth therefore, with MicroSalt's upcoming IPO a possible value inflection point for the company.
The overall trend for Tekcapital's portfolio is up with steady increases in valuation each year since initial investment in 2018 (see chart below). From a technical standpoint, some consolidation was expected at this point, and the wide discount to NAV offers an attractive entry point.
Tekcapital historical net assets (US$m)
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