Robotics news, humanoids updates and most recent fundraising announcements.
The robotics industry is expanding rapidly, with robotics applications, multipurpose robots, funding opportunities, and spatial intelligence being actively explored by major VC firms.
The robotics market fundraising landscape has experienced significant fluctuations over the past few years, with a notable decline in 2022 followed by signs of recovery in 2023 and early 2024. The first six months of the year have seen $4.2 billion invested in the category in California alone, putting this year well on track to beat 2023’s 12-month total of $6.8 billion. The number is still well shy of the COVID peak of 2021, which brought in $17.7 billion, and even 2022’s $10.3 billion for the US market and $35 billion and $16 billion globally for 2021 and 2022 respectively. The market for the industrial robotics is about to reach USD 94.8 billion by 2032 with CAGR: 12.6% (According to DataHorizzon Research).
The robotics market, sooner or later, is inevitably prone to accelerated growth due to several key factors that are driving demand and development across various industries.
➡️ Technological Advancements:
The integration of artificial intelligence and machine learning has significantly improved the capabilities of robots, making them smarter and more efficient in performing complex tasks (check Covariant)
Advancements in sensors and connectivity (IoT) have enhanced robots’ ability to perceive and interact with their environments more accurately and effectively.
➡️ Labor Shortages and Rising Labor Costs:
In many industries, there is a shortage of skilled labor, and wages are rising. U.S. labor costs increased more than expected in the first quarter amid a rise in wages and benefits, confirming the surge in inflation early in the year that will likely delay a much- anticipated interest rate cut later this year (Reuters). To be precise, the employment cost index rised 1.2% in the first quarter of 2024. Robots can help fill these gaps by performing repetitive or hazardous tasks, thereby reducing dependency on human labor.
➡️ Increased Automation in Manufacturing:
The manufacturing industry is increasingly adopting automation to improve productivity, quality, and safety. Robots play a crucial role in automating assembly lines, material handling, new manufacturing processes like additive manufacturing, 3D printing, metal forming, and other production optimization (check Machina Labs).
➡️ Growth in E-commerce and Logistics:
The rise of e-commerce has led to a surge in demand for efficient logistics and warehousing solutions. Robots are being used to automate sorting, packing, fulfillment, and delivery processes, (check Instock) thereby enhancing efficiency and reducing operational costs (check Slip Robotics that loads and unloads truck in 5 minutes).
➡️ Healthcare Advancements:
In the healthcare sector, robots are being used for surgery, rehabilitation, patient care, and hospital logistics. The need for precision and efficiency in medical procedures drives the adoption of robotic solutions. Also, lab automation is an interesting and growing space (check Trilobio, robotic lab automation modules and an app store for molecular and synthetic biology).
➡️ Aging Population:
Many countries are experiencing an aging population, which increases the demand for robots in eldercare, including assistance with daily activities, mobility support, and companionship (check Pepper, an interactive humanoid robot for eldercare).
How are Humanoids doing?
The white-hot humanoids category continued to gain steam. Figure led the way there with a massive $675 million Series B. That raise alone moved the needle a bit. The other notable humanoid investment arrived by way of 1X. The Norwegian firm, which counts OpenAI as an early backer, brought in a healthy $100 million.
Persona AI, a new humanoid on the block.
Despite the crowded market, the potential for useful, reliable, and affordable humanoid robots is vast, making room for innovative companies. Persona AI is co-founded by Nic Radford and Jerry Pratt, both highly experienced in the robotics field. Radford previously led the development of NASA’s Valkyrie humanoid robot and founded Houston Mechatronics (now Nauticus Robotics), while Pratt has extensive experience with walking robots at the Institute for Human and Machine Cognition (IHMC) and co-founded Boardwalk Robotics.
The founders acknowledge the challenges in making humanoid robots commercially viable but are optimistic about the technological advancements and market demand. They plan to build a team across Houston and Pensacola, Florida, and have already secured substantial seed investment. The company aims to secure high-profile partnerships, build a team of 10–20 people in the next few months, and start designing and building their own robot within a year. Persona AI aims to differentiate itself by focusing on practical applications and understanding market needs, leveraging the founders’ extensive experience in the field.
China knows how to build cheap!
Unitree introduced G1 Humanoid Agent with a price starting from $16K!
The Unitree G1 Humanoid Agent AI Avatar, also known as the G1 humanoid robot, has a starting price of $16,000, excluding tax and shipping. The G1 is a 4-foot-tall robot that’s powered by AI and has 23 to 43 joint motors that allow for a large range of motion. It’s designed to be flexible and agile, and can perform complex tasks and navigate difficult environments. The G1 is also driven by imitation and reinforcement learning. Check out the video. It’s truly impressive what $16k of hardware can do!
Tesla will have humanoid robots ready for internal use in 2025.
Elon bends the physics rules and achieves impossible things, again! Tesla plans to start low production of humanoid robots for internal use by the end of next year. Musk hopes to achieve high production by 2026. The company’s humanoid robot, Optimus (previously called Bumblebee), was first unveiled in September 2022, and a second-generation model was shown folding a T-shirt in a video released in early 2024. Musk believes that robot sales could eventually surpass Tesla’s car sales. He sees Tesla as well-positioned to reach volume production with efficient AI capabilities on the robots themselves. The global robotics market is projected to reach $218 billion by 2030, driven by advances in AI and cloud computing, which enable robots to perform more complex tasks.
Robotics Fundraising updates
🤖 Mytra’s Warehouse Robot
Amount raised: $78m. Investors: Eclipse Automation, 515 Ventures, Promus Ventures, Garry Tan, Lachy Groom.
Mytra, a startup founded by former Tesla and Rivian employees, has developed a new warehouse robot system designed to optimize storage and movement within warehouses, potentially making forklifts obsolete. The system includes a pallet-size robot and a matrix of three-dimensional steel cells, capable of moving loads up to 3,000 pounds. The first system is operational at Albertson’s grocery chain.
🤖 Monarch’s Electric Robot Tractor
Amount raised: $133 million series C. Investors: Astanor, HH-CTBC Partnership, L.P., At One Ventures, PMV and The Welvaartsfonds.
Monarch Tractor, an electric autonomous tractor startup, has raised to expand its operations globally. The company aims to support sustainable farming practices by reducing reliance on chemical fertilizers and diesel fuel. Monarch has deployed over 400 tractors across 13 states and Canada, with plans to enter the European market next.
🤖 Skild AI
Amount raised: $300 million. Investors: Coatue, Lightspeed Venture Partners, SoftBank, Jeff Bezos.
Skild.ai is redefining the robotics landscape with a foundational AI model enabling autonomous machines to perform an unlimited range of tasks.
🤖Physical Intelligence
Amount raised: $70 million. Investors: Thrive Capital, Greenoaks, Khosla Ventures, Lux Capital, OpenAI Startup Fund, and Sequoia Capital.
PI is a new company bringing general-purpose AI into the physical world.
🤖Collaborative Robotics
Amount Raised: $100 million Series B round. Investors: General Catalyst, Bison Ventures, Industry Ventures, and Lux Capital, Sequoia Capital, Khosla Ventures, Mayo Clinic, Neo, 1984 Ventures, MVP Ventures, and Calibrate Ventures.
Collaborative Robotics is a team of innovators defining the future of robot interaction and solving warehouse automation and materials handling problems.
🤖Rokae
Amount Raised: $70 million. Investors: Sinye Capital, Shenzen Capital Group, THG VC, Plum Ventures.
Rokae helps equip their customers in industries such as auto parts, electronics, metals, automatic sewing, healthcare, etc. with intelligent technology. ROKAE has grown into a leading player in China’s robotics industry, with businesses covering a dozen countries across the world, including Germany, France, Russia, Japan, and Korea.
What VCs and Industry Experts are thinking?
Optimism for Growth and Innovation
AXA IM US:“The robotics sector looks primed for further growth in 2024.” AXA IM US highlights that the demand for robot installations is expected to grow, driven by supportive legislation and the adoption of AI. The sector is seen as having a broad range of opportunities, from robotic surgery to warehouse automation.
Søren Peters, CEO of HowToRobot:“2024 will likely be the year when we see more businesses make strategic investments aimed at providing them a favorable edge to operate in this new environment.” Peters emphasizes the need for businesses to invest in automation to mitigate supply chain dependencies and rising labor costs.
Shift in Investment Focus
F-Prime Capital:“While the funding drop mirrors trends in the broader tech startup and venture capital ecosystem, it is more pronounced in the robotics industry as the torrent of capital investors once poured into the autonomous vehicle sector has dried up.” F-Prime Capital notes a significant shift from autonomous vehicles to Vertical Robotics, which focus on industrial applications and end-to-end solutions.
Y Combinator:“The last few years’ robust early stage activity will drive increased later-stage investment as companies mature and achieve commercial milestones.” Y Combinator’s inclusion of robotics as a focus area in its 2024 cohort reflects continued early-stage investment interest, driven by advancements in AI and labor shortages.
Strategic and Practical Considerations
Business Insider:“Despite financial challenges and a slower pace of investments due to reduced cash flow into venture funds, founders are vigorously pursuing funding opportunities.” The report highlights that VCs are focusing on AI startups with tangible use cases and real revenue growth, and expect a slight improvement in funding conditions for startups in 2024.
HowToRobot:“Planning early for 2024 robotics investments can help align with business goals and prove project feasibility.” Early planning and setting measurable goals are crucial for businesses to make informed investment decisions and avoid missed opportunities in automation.
Challenges and Opportunities
F-Prime Capital:“Investors today are looking for differentiated solutions which transform massive addressable markets, but they must also deliver superior financial results.” The focus is on business fundamentals and commercial viability, rather than hype-driven investment cycles.
HowToRobot:“The challenges for the robotics market in 2024 are also more of a practical nature: How and where can businesses find the right automation solution and suppliers to provide it?” The market is maturing, with more structured processes and sourcing platforms emerging to help businesses navigate their automation needs.
Is Spatial Intelligence a new big thing?
The emerging trend of spatial intelligence in robotics, allows machines to navigate, interact, and perform tasks more effectively by understanding their environment. Venture capital firms like Khosla Ventures, Andreessen Horowitz, and General Catalyst are investing in startups developing this technology. Spatial intelligence enables robots to handle complex tasks with greater precision and adaptability, overcoming the limitations of traditional robotics that rely on controlled environments.
However, a significant challenge is the scarcity of data needed to train robots for spatial intelligence, unlike large language models that have abundant text-based data. Startups are addressing this by employing creative business models to collect real-world data efficiently. Despite these hurdles, investors see spatial intelligence as a game-changer for the robotics industry, which has already raised over $4.2 billion this year.
Big tech companies like OpenAI, Hugging Face, and Nvidia are also entering the spatial intelligence race, both as builders and investors. The article highlights the potential for significant returns as companies develop unique datasets from the physical world, leveraging AI beyond just internet-based data. The next generation of AI is expected to understand physical laws and phenomena, enhancing its capabilities in various applications.
What’s next?
Despite the recent challenges, the robotics market is poised for growth.
As the industry continues to evolve, investors are increasingly focusing on differentiated solutions that transform massive addressable markets while delivering superior financial results. The robotics sector’s tailwinds have positioned it to be one of the driving sectors for venture returns in the coming years, although challenges remain in delivering on the financial promise of robotics that historically has been taking longer than expected. Can’t wait to see if this time, with all the funding, tech development, regulations, hopes and promises, the robotics market will take off significantly.
What an exciting time we get to live! 🙂
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