The Venture Codex

Participated · Equity · May 2024

Potential Motors develops Terrain Intelligence, a software platform that uses forward-facing sensors such as cameras and computer vision to interpret terrain shape, incline, surface type, obstacles and more. The platform can present data to drivers or autonomously self-select vehicle control adjustments including drive mode, suspension and differential settings and torque levels. The company targets commercialization of its AI-powered perception solutions across automotive, powersports, mining and defense sectors. Potential has partnered with CFMOTO Powersports Inc and has delivered an innovation project for a global automotive brand, with another pilot underway in Q2 and further projects at scoping stage. Led by CEO Sam Poirier and based in Fredericton, NB, Canada, the company recently raised additional funding to support commercialization. The recent financing brought the company’s total raised to $8.5M. Potential Motors develops vehicle control software for electric side-by-sides that integrates subsystems like torque control and suspension and proactively optimizes them for changing terrain. The software is intended to help manufacturers transition to electric by improving performance, enabling new features, and simplifying vehicle architecture. The company plans to use the new funding to expand its team, further develop its technology, and complete rigorous off-road testing of its prototype platform, which it expects to reveal later that year. Potential Motors is headquartered in Fredericton, New Brunswick, Canada and targets the fast-growing UTV market, which the article notes is transitioning to electric, growing 50% faster than automotive and expected to reach $11.95B by 2027. The firm is VC-backed and has raised C$6.5M (US$5M) to date, including the newly announced $3.2M round. CEO Sam Poirier highlighted that software will be a key differentiator as off-road vehicles electrify. Potential Motors, founded in 2018, is developing an electric vehicle control system and core software called RallyAI that manages power, braking, and steering at each wheel. The company uses AI and computer vision to boost vehicle safety and responsiveness without replacing the driver. It pivoted from converting gasoline cars to electric powertrains to focusing on software after new team members joined. Recent hires Marcel LeBrun and Chris Newton, from the founding teams of Radian6 and Q1 Labs, joined the company and influenced the strategic shift. The company says it will use the new funding to expand its technical team and accelerate platform development. This seed raise is the startup's first external fundraise.