Last year was not the most profitable period for investments in robotics start-ups. However, this was one of the most sensible.
In areas ranging from humanoid co-worker bots to AI robot brains, startups developing some of the most sci-fi applications of the technology raised the most rounds of the year. Large trades also skewed early, indicating that the cycle is likely just starting.
This is an illustration of the trend Charactera two-year-old startup whose goal is to “bring a general-purpose humanoid to life.” Founded in 2022, the Silicon Valley startup raised $675 million in Series B funding in February to implement its vision of building robots to perform dangerous and undesirable jobs.
Another example is the second largest round of the year, which featured the creators of Robot Brain Physical intelligence. The San Francisco-based startup, founded this year, earned $400 million last month at a $2 billion valuation.
Overall, robotics startups secured about $7.2 billion in seed-stage investment in 2024, based on Crunchbase data. This is barely above year-ago levels, but still well below the 2021 market peak, as shown in the chart below.
Versatile robots
One trend we see in funding statistics is investor interest in startups developing versatile robots that may perform greater than just one or two easy tasks.
In addition to figure and physical intelligence, one other example of this idea is based in Pittsburgh Skillful artificial intelligencewhich also develops brain models that will be used in various robots and for various tasks. In July, it raised a $300 million Series A at a valuation of $1.5 billion.
A few months earlier, based in Silicon Valley Collaborative robotics scored a $100 million Series B to create so-called “practical collaborative robots” – or “cobots” – to work with humans in areas resembling manufacturing, health care and retail. And San Francisco Bright Machineswhich focuses on flexible factory work, secured $106 million in equity financing in June.
Meanwhile on the home front Cruise founder Kyle Vogt fired Bot company this year with particular emphasis on home robotics. A San Francisco startup has raised initial funding of $150 million to build a robot that may help with a variety of household chores.
Help needed
Robotics startups often point to current and projected labor shortages as a motivating factor. Founder of the figure Brett Adcock‘S master plan for example, for the company, it is based on the assumption that “there are over 10 million unsafe or undesirable jobs in the United States alone” and an aging population will only make it harder to fill positions.
Using Crunchbase datawe have compiled a list of 14 corporations that have raised big funds this year with a focus on developing robots to do jobs currently done by humans.
One robotics investor and major employer that appears to share this vision is Amazon founder Jeff Bezos and his fund, Bezos expeditions. Bezos, whose company is known for its use of warehouse automation technology, has backed at least 4 large rounds for robotics corporations this year through its investment vehicles: Drawing, Physical Intelligence, Skild AI and The Swiss Milewhich is developing a robot on wheels.
Surgical robotics, drones and more
In addition to workplace bots and AI robot brains, we have also seen continued investment in areas that have long been core sectors for robotics startups.
Surgical robotics is one of them. This year saw two largest investments MMIcreator of the technology of robot-assisted microsurgical treatments Medical Capstanwhich is working on robotics technology that is a less invasive alternative to traditional open heart surgery. They each raised $110 million in Series C rounds.
Drones and delivery robots have gained significant funding over the years and proceed to do so in 2024. Skydiawhich sells drones for corporate and military applications, secured a $170 million extension round last month. In the delivery space, one other startup whose most important client is the military is an autonomous ground transportation provider Forterraclosed a $75 million Series B round.
Not about going out (yet)
Overall, the list of funded robotics startups this year falls mostly into what I might call the “fun to watch” phase. This signifies that the most funded corporations are largely early stage, with huge ambitions, compelling business plans and little pressure at this stage to deliver consistent profits or a clear path to profitability.
Investors also seem willing to play the “wait and see if their portfolio companies can deliver on previous promises.”
It looks like an extremely dangerous proposition, albeit one with the potential for huge profits. At least that is what Drawing expects in its master plan, which acknowledges that: “We face high risks and extremely low chances of success.”
“But if we are successful,” Figure says, “we have the potential to make a positive impact on humanity and build the largest company in the world.”