2 Investors Salesforce Ventures see the risk and the reward in the robotic space after a jump of $ 7 billion in 2024
Six months ago, we looked into the robotics space, in a proactively supply – but still seeing only some incoming locations per month. Today, this issue has soared. In just half a year, we have encountered robotics companies covering the whole range – from those who build models of the Robotics Foundation (RFMS) with full robots, humanoids and the tools that feed them.
The industry is booming, the venture capital paying more than $ 7 billion in robotics companies in 2024 only. Mega-rounds in companies like Figure ($ 675 million B), physical intelligence ($ 400 million A) and Skild ($ 300 million A) signal a major increase in investors’ appetite for robotics. The global robotics market is expected to develop exponentially, industrial robotics, it is expected to reach around 60 billion dollars by 2034 and service robotics which should reach around $ 99 billion by 2029.
The opportunity at hand
Although robotics quickly become one of the most dynamic and fastest categories of AI, it is also one of the most complex technique, with a steep learning curve – in particular for investors evaluating new actors. Unlike LLM – when standardized references provide clear performance measures – robotics has not a universally accepted framework to compare the capacities between companies. This complexity stems from the unique position of the field at the crossroads of AI, the design and engineering of the equipment, the supply chain, the manufacturing and the deployment of the real world – which all require different expertise to build a prosperous company, as well as a different set of criteria to be evaluated. In short, bringing AI to the physical world is more difficult than bringing AI to the digital world.
As an investors, we aim to get started early – not only to support promising companies, but to play a constructive role in the way this technology is developing. Robotics are no longer science fiction; It is a reality that takes place quickly with the potential to transform the way we live, work and build.
While AI begins to shape the physical world, we see a rare convergence of technological progress and significant opportunities. From the automation of warehouses to generalist robotic form factors, these systems are not content to perform tasks – they can learn, adapt and improve in real environments. The companies that build them throw the foundations for a more efficient and more resistant future – and, if it is developed in a thoughtful way, which increases the work without losing the critical role that people play.
To support the others by exploring this space, we have recently set up an introduction to the opportunity of the market, the unique challenges of investment in robotics and our business assessment framework in the category. It’s a deep dive, so we described our three best dishes to remember to assess robotics startups here:
1. Look for interdisciplinary excellence and leadership -oriented leadership.
Robotics is not only an AI problem – it is a convergence of software, hardware, data, manufacturing and operations. Winning companies need high -level talents in each of these disciplines early, but Pedigree is not enough. We are looking for teams that operate with the thought of the first principles, based on modern technical architectures and have a long -term vision aligned with the place where industry is heading – not where it took place.
2. Do not trust the demo – ask it.
To really assess the abilities of a robot, it is important to understand the context behind the demo. Does the system work entirely independently or with a certain degree of teleoperation? Are objects or environments organized to simplify the task? As far as possible, observe the system in person. Performance in uncontrolled environments – especially when things do not go exactly as planned – is often a more useful signal than a polished demo. If necessary, gently interrupt the robot’s work flow to see how it reacts.
3. Evaluate real world performance, not just potential.
Without a universal reference, investors must rely on the success of a company’s success. Learn about measurable measures such as task success rates, flow and duration of autonomy. Understand how long the deployments take, what training is required and if the data strategy creates a feedback loop for continuous improvement. In the end, the most promising robotic startups combine technical depth with scalable deployment models and a clear return on investment story for customers. This is one of the learning of the latest robotics wave – stuck in POC purgatory.
The long -term path
As the generation of AI of robotic startups matures, VCs must learn from previous cycles. Many robotics companies in the 2014-2015 era have been trapped by performing unique integrations for each customer without clear paths towards a broader implementation and scale. Current robotics companies benefit from a considerably improved material efficiency, methods of collective data and AI capabilities which were not available in previous cycles. The convergence of progress in these areas puts robotics in a position to go finally.
As digital AI is progressing rapidly, the physical world represents the next main automated border. While AI models increase white passes through software engineering, customer support and data analysis, physical labor solutions remain largely unexploited. The technical moat that erodes in software, where AI democratizes development, remain strong in robotics due to the complexity of the integration of the physical world.
The promise does not consist in automating work, but building systems that increase human capacities and learning and continuously improving thanks to a deployment of the real world. These are long -term and highly technical companies – and over time, their advantage of aggravating data and their deep integration with physical environments create competitive moat that models based on software will find more and more difficult to reproduce.
Investors wishing to carefully assess these multidisciplinary companies will be those that will help build and transform the physical world for our future.
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