Blackmore Sensors and Analytics has announced that it was able to raise $3.5 million in its latest round of funding. The firm said that the new resources would help it develop frequency-modulated continuous-wave Lidar which can be integrated into self-driving cars.

Most self-driving cars depend on radar and camera systems on top of the car. Blackmore is planning to create a new system where all sensors and radars are integrated into a small piece of microprocessor.

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In an interview with Venture Beat, Blackmore chief executive officer Randy Reibel said, "Thy typical American consumer does not want a self-driving car with roof-mounted instruments. We're reducing this to be stamped out on a single semiconductor so that it can fit in the front grill of a car and we can squeeze it in there, out of sight."

Lidar (light detection and ranging) is the technology that helps self-driving car be acquainted with its surroundings essentially allowing these cars to see. Instead of relying heavily on car-mounted sensors and cameras, Blackmore plans to use frequency-modulation to help self-driving cars to see.

Among the venture capitalists that participated in Blackmore's recent funding run are Millenium Technology Value Partners and Next Frontier Capital, according to Tech Crunch.

Blackmore is just one of the many new generation auto part suppliers planning to meet the demand for sensor components and other detection protocols for self-driving cars. Traditional automakers like Fiat Chrysler, Ford, and BMW have all thrown their hat into the development of self-driving cars. Tech giants like Google have also made headways in the development of its self-driving car and related technologies.

Blackmore said that the Lidar market would grow to be a $10 billion industry by 2020. Right now, Blackmore is competing for a piece of the market against notable industry players like Quanergy and Velodyne.