About Embedded Systems sector in Bay Area, United States
The Embedded Systems sector in Bay Area, United States comprises 68 companies, including 40 funded companies having collectively raised $2.32B in venture capital money and private equity. Out of these, 34 are Series A+ funded, and 1 has achieved unicorn status.
Embedded Systems sector in Bay Area, United States has seen 19 acquisitions and 3 IPOs. This represents almost 32.4% of all such companies - which is higher than the 4.5% exit rate of tech companies in general.
This sector includes embedded systems are an application-specific combination of hardware and software designed to manage and optimise a specific device.
Embedded Systems sector is also known as Embedded Systems Solutions, Advanced Embedded Systems or Digital Embedded Systems.
Design tools for designing, developing and testing embedded hardware, software and applications and IP cores exclusively for embeddable hardware; includes hardware components such as development boards, embeddable ICs, and single board computers and embedded hardware such as firmware, middleware, etc. Also includes embedded systems specific for applications in healthcare, automotive, etc. Integrated circuits not developed specifically for embedded systems; printed circuit boards, flexible electronics, semiconductor wafers, etc. Also excludes design tools specifically built for designing Semiconductor ICs and not embedded systems.
Top Embedded Systems Companies in Bay Area, United States
There are 68 Embedded Systems startups in Bay Area, United States which include Particle, Ambarella, Celestial AI, Alif Semiconductor, Akash Systems. Out of these, 40 startups are funded, with 34 having secured Series A+ funding, and 1 achieving unicorn status.
Over the past 10 years, an average of 2 new companies have been launched annually. Notably, several of these startups have been founded by alumni of University of California (Berkeley), University of California (Los Angeles) and Cornell University.
Here is the list of top Embedded Systems startups in Bay Area, United States
1. Particle
Developer of a prototype to production connectivity platform for IoT. Its Photon Wi-Fi and the Electron 2G3G cellular are primary prototyping platforms for integrating connectivity into devices. The product is primarily aimed at designers and developers rather than at enterprises.
Key facts about Particle
- Founded Year: 2011
- Location: San Francisco (United States)
- Stage: Acquired
- Total Funding till date: $135M
- Investors: Root Ventures, Spark Capital and 20 Others
- Latest Funding Round: Series C, Mar 13, 2025, $*****
- Tracxn Score: 78/100 What is this?
- Competitors Rank: 1 of 1,526 Competitors
2. Ambarella
Manufacturer of AI-enabled image processors. The platform provides users with solutions for ADAS, security cameras, and autonomous driving. It also offers chip architecture based on the computer-vision algorithm it produces. Its features include low power consumption, optimized compression efficiency, and image quality.
Key facts about Ambarella
- Founded Year: 2004
- Location: Santa Clara (United States)
- Stage: Public
- Total Funding till date: $15.4M
- Investors: Northgate Capital, Riverwood Capital and 7 Others
- Latest Funding Round: Post IPO, Jul 17, 2022, $*****
- Tracxn Score: 69/100 What is this?
- Competitors Rank: 2 of 1,378 Competitors
3. Celestial AI
Developer of optical interconnect technology for artificial intelligence infrastructure systems. The company’s technology aims to improve artificial intelligence system performance through optical interconnectivity. It focuses on enabling efficient scaling of artificial intelligence to advance progress in various fields. The company’s platform is designed for integration into next-generation artificial intelligence systems.
Key facts about Celestial AI
- Founded Year: 2020
- Location: Santa Clara (United States)
- Stage: Acquired
- Total Funding till date: $589M
- Investors: Koch Disruptive Technologies, Temasek and 21 Others
- Latest Funding Round: Series C, Feb 25, 2025, $*****
- Tracxn Score: 66/100 What is this?
- Competitors Rank: 7 of 183 Competitors
Alif Semiconductor is a provider of processors and microcontrollers for AI-enabled embedded computing solutions. Its products include Ensemble which is an embedded controller and Crescendo which is a cellular-connected controller
Key facts about Alif Semiconductor
- Founded Year: 2019
- Location: Pleasanton (United States)
- Stage: Series B
- Total Funding till date: $72.4M
- Investors: Celesta Capital, Kleiner Perkins and 2 Others
- Latest Funding Round: Series B, Dec 04, 2019, $*****
- Tracxn Score: 64/100 What is this?
- Competitors Rank: 2 of 94 Competitors
Developer of thermal management solutions integrating diamonds with semiconductor technology. This technology combats heat, enabling devices and systems to operate more effectively. The company’s products include chip-on-diamond solutions, servers, radios, and power amplifiers. These products serve industries such as AI, data centers, space, automotive, cellular communications, and radar.
Key facts about Akash Systems
- Founded Year: 2016
- Location: San Francisco (United States)
- Stage: Series A
- Total Funding till date: $17.6M
- Investors: Founders Fund, ACME and 23 Others
- Latest Funding Round: Series A, Jul 10, 2019, $*****
- Tracxn Score: 62/100 What is this?
- Competitors Rank: 2 of 21 Competitors
Companies founded year-on-year in the Embedded Systems sector in Bay Area
6 Embedded Systems startups in Bay Area were founded in 2018 - this is the most number of startups founded in any year in the last 10 years.
- Total Number of Companies
Year | No. of companies |
|---|---|
2026 | - |
2025 | 2 |
2024 | 1 |
2023 | 1 |
2022 | - |
2021 | - |
2020 | 3 |
2019 | 4 |
2018 | 6 |
2017 | 3 |
Stage-wise distribution of Embedded Systems sector companies in Bay Area
Out of the total 68 Embedded Systems companies in Bay Area, 40 have secured funding. Among them, 34 have reached Series A or higher, and 31 to Series B or beyond.
Founded - 68
Funded - 40
Series A+ - 34
Series B+ - 31
Series C+ - 27
Company Stage | No. of companies |
|---|---|
Founded | 68 |
Funded | 40 |
Series A+ | 34 |
Series B+ | 31 |
Series C+ | 27 |
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Funding Trends in the Embedded Systems sector in Bay Area
Total funding year-on-year in the Embedded Systems sector in Bay Area
The Embedded Systems sector in Bay Area saw a total funding of more than $1.63B in the last 10 years. The most amount of funding was in 2025 at more than $382M. There has been a total funding of $100M in 2026 till date.
- Total Funding
Year | Total Funding |
|---|---|
2026 | $100M |
2025 | $382M |
2024 | $311M |
2023 | $125M |
2022 | $105M |
2021 | $294M |
2020 | $46.8M |
2019 | $171M |
2018 | $55.4M |
2017 | $35.4M |
Recent Funding Rounds in Embedded Systems in Bay Area
In the year 2026, till June 2026, Embedded Systems companies in Bay Area have raised $100M in equity funding across 2 rounds.
In the same period last year (i.e. till March 2025), Embedded Systems companies in Bay Area had raised $255M across 3 rounds.
So, 2026 has seen a 60.78% drop in funding in Embedded Systems companies in Bay Area as compared to 2025.
Here are some recent, important funding rounds in Embedded Systems companies in Bay Area:
Company | Round Raised | Amount Raised | Funding Date | Investors |
|---|---|---|---|---|
Series C | 5804 | Jun 02, 2026 | ||
Series C | 3805 | Apr 08, 2026 | ||
Seed | 4920 | Nov 2025 | ||
Series C | 3433 | Aug 01, 2025 | ||
Series A | 3212 | Jul 10, 2025 | - |
Top Investors in Embedded Systems in Bay Area
Intel Capital is the top investor in Embedded Systems companies in Bay Area based on number of companies invested.
Here are some top investors in Embedded Systems companies in Bay Area:
Investor | Location | Top Portfolio Companies |
|---|---|---|
Santa Clara (United States) | - | |
Menlo Park (United States) | ||
Portola Valley (United States) | ||
Norwalk (United States) | - | |
Palo Alto (United States) |
M&A activity in Embedded Systems sector in Bay Area
In the year 2026, till January 2026, 1 acquisition happened in Embedded Systems sector in Bay Area. Last year, in 2025, a total of 5 acquisitions happened in Embedded Systems sector in Bay Area.
Here are some recent, important acquisitions in Embedded Systems sector in Bay Area:
Company | Acquisition Type | Acquisition Date | Acquirers |
|---|---|---|---|
Business Acquisition | Jan 27, 2026 | ||
Business Acquisition | Dec 02, 2025 | ||
Business Acquisition | Jul 08, 2025 | ||
Business Acquisition | Jun 17, 2025 | ||
Business Acquisition | Jun 03, 2025 |
Acquisition trends in Embedded Systems sector in Bay Area
Here are the acquisition trends in Embedded Systems sector in Bay Area:
- Total Number of Acquisitions
Year | No. of companies |
|---|---|
2026 | 1 |
2025 | 5 |
2024 | 1 |
2023 | - |
2022 | 2 |
2021 | - |
2020 | 1 |
2019 | - |
2018 | 2 |
2017 | - |
IPOs in Embedded Systems in Bay Area
In the year 2017, till September 2017, 2 IPOs happened in Embedded Systems sector in Bay Area.
Here are some recent, important IPOs in Embedded Systems sector in Bay Area:
Company | IPO Date | Exchange Symbol |
|---|---|---|
Sep 29, 2017 | Tokyo Stock Exchange (TSE) | |
May 24, 2017 | National Association of Securities Dealers Automated Quotations (NASDAQ) | |
Oct 10, 2012 | National Association of Securities Dealers Automated Quotations (NASDAQ) | |
Jun 30, 1998 | National Association of Securities Dealers Automated Quotations (NASDAQ) | |
Nov 25, 1997 | National Association of Securities Dealers Automated Quotations (NASDAQ) |
Colleges which produce the most Embedded Systems companies in Bay Area
Companies founded by alumni from top colleges in the Embedded Systems in Bay Area
Most number of Embedded Systems startups in Bay Area have been founded by alumni from University of California (Berkeley), University of California (Los Angeles) and Cornell University.
College | No. of companies |
|---|---|
University of California (Berkeley) | 6 |
University of California (Los Angeles) | 3 |
Cornell University | 2 |
Tsinghua University | 2 |
Carnegie Mellon University | 1 |
Harvard University | 1 |
IIT Bombay | 1 |
IIT Kanpur | 1 |
IIT Madras | 1 |
Massachusetts Institute of Technology | 1 |
Total funding in Embedded Systems companies founded by alumni from top colleges in Bay Area
In the last 10 years, University of California (Berkeley) graduates' Embedded Systems companies in Bay Area have raised the most funding among top colleges. Cornell University alumni are second, and IIT Bombay alumni are third.
College | Total Funding |
|---|---|
University of California (Berkeley) | $243M |
Cornell University | $159M |
IIT Bombay | $142M |
Tsinghua University | $136M |
IIT Madras | $127M |
Stanford University | $127M |
Massachusetts Institute of Technology | $89.7M |
University of California (Los Angeles) | $69.1M |
IIT Kanpur | $38M |
Carnegie Mellon University | $12.2M |
Top News in Embedded Systems in Bay Area
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MIPS Reports 30% Sales Growth in Q1 Driven by Sports and North America MarketsBicycle Retailer•Apr 23, 2026•MIPS Computer Systems
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Arteris and MIPS Collaborate on Physical AI System-on-Chip PlatformsNew Electronics•Apr 22, 2026•MIPS Computer Systems, Arteris IP
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Wind River joins CHERI Alliance and partners with Innovate UK on secure computingNew Electronics•Apr 22, 2026•Wind River
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BAE Systems Honors Wind River with a Partner 2 Win Gold Tier AwardBusiness Wire•Apr 08, 2026•Wind River
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Tech Data India Signs Distribution Agreement with Wind RiverBusiness Wire•Oct 08, 2025•Tech Data, Wind River
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