Flow Engineering, a startup offering AI tools for hardware design, has raised $50 million in a Series B round at a $750 million valuation. The round was co-led by Antonio Gracias of Valor Equity Partners and Gavin Baker of Atreides Management. Both investors are also known for their investments in Elon Musk’s companies.
Sequoia Capital, which led Flow Engineering’s Series A round last October, also participated, as did former Sequoia partner Roelof Botha, who invested as an individual investor. Botha has also joined Flow Engineering’s board.
Flow Engineering, based in San Francisco, is addressing challenges in hardware design with AI agents that automatically align computer-aided design drawings with product requirements, simulation results and other testing. Its customers include Anduril, Rivian, Joby Aviation, General Motors PPU, a joint venture between General Motors and TWG Motorsports; RV Tech, a Rivian and Volkswagen joint venture; Stoke Space and others.
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“AI has transformed software engineering. Hardware engineering is next,” founder and CEO Pari Singh said in a LinkedIn post. “When I became a mechanical engineer, I wanted to invent. In reality, 90% of the day to day execution work (CAD, excel, sim) was digital manual labour. That’s about to flip. The engineer’s role will change more profoundly than at any point since the invention of CAD, with humans focusing on invention, architecture, tradeoffs and judgement calls, and agents taking the grunt work.”
Singh said Flow Engineering is now the default platform for requirements and verification for frontier hardware teams at companies including Anduril, Joby and Stoke Space.
“But it’s not just next-gen anymore,” he added. “Industry giants including General Motors PPU and Volkswagen & Rivian’s joint venture (RV Tech) are reshaping their core development practices with Flow’s AI.”
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“My conviction in Flow Engineering has only grown since I first led the Series A. I invested personally in this round and joined as an independent board member because of the team, the traction in the business, and the timing of AI accelerating hardware development. 35 of 100 most valuable companies in the world are technology companies, and 26 of those 35 are hybrid hardware/software companies. Flow Engineering enables legacy and frontier hardware businesses to harness agentic development and accelerate time to market,” investor Roelof Botha said via LinkedIn.
Flow Engineering said, “We get to work alongside engineers developing some of the most remarkable hardware products in the world: humanoid robots, hypersonic aircrafts, and satellite constellations. We help those teams iterate faster and bring what they’re building into the world sooner.”