Bluespace.ai, a startup focused on AV technology for mass transit, gets $3.5 million in seed funding

Bluespace.ai, a new autonomous driving startup focused on mass transit, announced today that it has raised $3.5 million in seed funding led by Fusion Fund.

Other investors include YouTube co-founder Steve Chen; UMC, the Taiwanese semiconductor foundry; Kakao Ventures; GDP Ventures; Atinum; Wasabi Ventures; Blue Ivy Ventures; Plug n Play; and SLV Capital.

The startup develops software systems for autonomous mass transit fleets and is currently in meetings with cities and transit providers. Its founding team includes CEO Joel Pazhayampallil, previously co-founder of Drive.ai, which was acquired by Apple earlier this year, and president and COO Christine Moon, whose experience includes serving as head of partnerships for Google’s Nexus program.

Bluespace.ai’s team also has people who have worked at AV companies like Zoox, Lyft Level 5 and Voyage. Their combined experience includes launching AV fleets in Texas, California and Florida.

In an email, Moon told TechCrunch that Bluespace.ai’s software “enables verifiably safe AV operation without the millions of miles of testing needed by current generation AVs. This enables our mission of making urban mobility more equitable, accessible and sustainable through mass transit automation in the near term.”

Several major automakers, including Volvo and Toyota, and startups like May Mobility and Optimus Ride, are also working on AV solutions for mass transit.

Moon said Bluespace.ai’s specific focus is on “increas[ing] the overall ability and efficiency across trunk transit routes with higher rider capacity.” While other startups have primarily focused on first- and last-mile solutions for slow-speed vehicles that are part of main transit systems, Moon added that Bluespace.ai’s aim is to safely enable full-size vehicles that can travel on public roads at road speed, therefore serving more passengers at a time.

In a press statement, Fusion Fund managing partner Lu Zhang said “After looking at many investment opportunities in the AV space, we found that BlueSpace stood out with their revolutionary technology approach and providing near term market application. The founding team has an incredibly strong technology background and significant deployment experience, having launched AV services in Florida, Texas and California.”