Freedom Robotics raises seed funding for robotics dev tools, fleet controls

Freedom Robotics fleet management

RMS enables fleet management and troubleshooting. Source: Freedom Robotics

SAN FRANCISCO — Freedom Robotics Inc. today announced that it has closed a $6.6 million seed round. The company provides a cloud-based software development infrastructure for managing fleets of robots.

Freedom Robotics cited a study by the World Economic Forum stating that, by 2025, machines will perform more tasks than humans, creating 58 million jobs worldwide. The company plans to use its funding to build its team and technology.

Freedom Robotics claimed that robotics startups can get their products to market 10 times faster by using its tools to do the “undifferentiated heavy lifting” rather than devoting employees to developing a full software stack. The company said its platform-agnostic Robotics Management Software (RMS) provides the “building blocks” for prototyping, building, operating, and scaling robot fleets.

Freedom Robotics builds RMS for developers

“We’ve seen that robotics is hard,” observed Dimitri Onistsuk, co-founder of Freedom Robotics. “In sixth grade, I wrote a letter to myself saying that I would go to MIT, drop out, and found a company that would change the world.”

Onistsuk did go to MIT, drop out, and draw on his experiences with Hans Lee and Joshua Wilson, now chief technology officer and CEO, respectively, at Freedom Robotics.

“We had been building things together before there was a cloud,” recalled Onistsuk. “Now in robotics, very few people have the ability to build a full stack.”

“We see robotics developers who have wonderful applications, like caring for the elderly; transportation; or dull, dirty, and dangerous work,” he said. “Everyone agrees on the value of this area, but they don’t realize the complexity of day-to-day iteration, which requires many engineers and a lot of infrastructure for support.”

“Robotics is like the Web in 2002, where everyone who wants to make an attempt has to raise $10 million and get expert talent in things like computer vision, mechatronics, systems integration, and ROS,” Onistsuk told The Robot Report. “It costs a lot of money to try even once to get a product to market.”

“We’ve combined layers of distinct software services by bringing modern software-development techniques into robotics, which traditionally had a hardware focus,” he said. “You can use one or many — whatever you have to do to scale.”

‘AWS for robots’

Freedom Robotics said that its cloud-based tools can be installed with just a single line of code, and its real-time visualization tools combine robotics management and analysis capabilities that were previously scattered across systems.

“Developers are always trying to improve their processes and learn new things,” said Onistsuk. “Amazon Web Services allows you to bring up a computer with a single line of code. We spent most of the first six months as a company figuring out how to do that for robots. We even bought the domain name ’90 seconds to go.'”

“You can drop in one line of code and immediately see real-time telemetry and have a cloud link to a robot from anywhere in the world,” he said. “Normally, when you want to adopt new components and are just trying to build a robot where the components talk to one another, that can take months.”

“During one on-boarding call, a customer was able to see within two minutes real-time telemetry from robots,” Onistsuk said. “They had never seen sensor-log and live-streaming data together. They thought the video was stuttering, but then an engineer noticed an error in a robot running production software. The bug had already been pushed out to customers. They never had the tools before to see all data in one place in developer-friendly ways.”

“That is the experience we’re getting when building software alongside the people who build robots,” he said. “With faster feedback loops, companies can iterate 10 times faster and move developers to other projects.”

https://www.freedomrobotics.ai/careers

Freedom Robotics’ RMS combines robotics tools to help developers and robotics managers. Source: Freedom Robotics

The same tools for development, management

Onistsuk said that his and Lee’s experience led them to follow standard software-development practices. “Some truths are real — for your core infrastructure, you shouldn’t have to own computers — our software is cloud-based for that reason,” he said.

“We stand on the shoulders of giants and practice what we preach,” Onistsuk asserted. “Pieces of our underlying infrastructure run on standard clouds, and we follow standard ways of building them.”

He said that not only does Freedom Robotics offer standardized development tools; it also uses them to build its RMS.

“With a little thought, for anything that you want to do with our product, you have access to the API calls across the entire fleet,” said Onistsuk. “We used the same APIs to build the product as you would use to run it.”

Freedom Robotics resource monitoring

Resource monitoring with RMS. Source: Freedom Robotics

Investors and interoperability

Initialized Capital led the funding round, with participation from Toyota AI Ventures, Green Cow Venture Capital, Joe Montana’s Liquid 2 Ventures, S28 Capital partner Andrew Miklas, and James Lindenbaum. They joined existing investors Kevin Mahaffey, Justin Kan, Matt Brezina, Arianna Simpson, and Josh Buckley.

“We’ll soon reach a point when there are more robots than cell phones, and we’ll need the ‘Microsoft of robotics’ platform to power such a massive market,” said Garry Tan, managing partner at Initialized Capital, which has backed companies such as Instacart, Coinbase, and Cruise.

“Cloud learning will be a game-changer for robotics, allowing the experience of one robot to be ‘taught’ to the rest on the network. We’ve been looking for startups with the technology and market savvy to realize this cloud robotics future through fleet management, control, and analytics,” said Jim Adler, founding managing director at Toyota AI Ventures. “We were impressed with Freedom Robotics’ customer-first, comprehensive approach to managing and controlling fleets of robots and look forward to supporting the Freedom team as they make cloud robotics a market reality.”

“We found out about Toyota AI Ventures through its Twitter account,” said Onistsuk. “We got some referrals and went and met with them. As the founder of multiple companies, Jim [Adler] understood us in a way that industry-specific VCs couldn’t. He got our experience in robotics, building teams, and data analytics.”

What about competing robotics development platforms? “We realized from Day 1 that we shouldn’t be fighting,” Onistsuk replied. “We’re fully integrated with the cloud offerings of Amazon, Google, and Microsoft, as well as ROS. We have drop-in compatibility.”

“What we’re trying to power with that is allowing developers to build things that differentiate their products and services and win customers,” he added. “This is similar to our cloud-based strategy. We try to be hardware-agnostic. We want RMS to work out of the box with as many tools and pieces of hardware as possible so that people can try things rapidly.”

Freedom Robotics raises seed funding for robotic dev tools, fleet controls

The Freedom Robotics team has raised seed funding. Source: Freedom Robotics

Hardware gets commoditized

“Hardware is getting commoditized and driving market opportunity,” said Onistsuk. “For instance, desktop compute is only $100 — not just Raspberry Pi, but x86 — you can buy a real computer running a full operating system.”

“Sensors are getting cheaper thanks to phones, and 3D printing will affect actuators. NVIDIA is putting AI into a small, low-power form factor,” he added. “With cheaper components, we’re looking for $5,000 robot arms rather than $500,000 arms, and lots of delivery companies are looking to make a vehicle autonomous and operating at a price point that’s competitive.”

“Companies can use RMS to build their next robots as a service [RaaS], and we’ve worked with everything from the largest entertainment companies to sidewalk delivery startups and multibillion-dollar delivery companies,” Onistsuk said. “Freedom Robotics is about democratizing robotics development and removing barriers to entry so that two guys in a garage can scale out to a business because of demand. The dreams of people with real needs in robotics will cause the next wave of innovation.”

“Software infrastructure is hard to do — we take what many developers consider boring so that they can sell robots into businesses or the home that get better over time,” he said.

Freedom Robotics logo

‘Inspiring’ feedback

Customer feedback so far has been “overwhelmingly inspiring,” said Onistsuk. “The best moments are getting an e-mail from a customer saying, ‘We’re using your product, and we thought we didn’t want some login or alerting plug-in. We have a demo tomorrow, and it would take four months to build it, but you can do it.'”

“We’ve seen from our interactions that the latest generation of robotics developers has different expectations,” he said. “We’re seeing them ‘skating to where the puck is,’ iterating quickly to build tools and services around our roadmap.”

“The RMS is not just used by developers,” Onistsuk said. “Development, operations, and business teams can find and solve problems in a collaborative way with the visualization tool. We can support teams managing multiple robots with just a tablet, and it integrates with Slack.”

“We can go from high-level data down to CPU utilization,” Lee said. “With one click, you can get a replay of GPS and telemetry data and see every robot with an error. Each section is usually one engineer’s responsibility.”

“A lot of times, people develop robots for university research or an application, but how does the robot perform in the field when it’s in a ditch?” said Lee. “We can enable developers to make sure robots perform better and safer.”

Freedom Robotics is currently being used in industries including agriculture, manufacturing, logistics, and restaurants, among others.

“This is similar to getting dev done in minutes, not months, and it could speed up the entire robotics industry,” Onistsuk added. “Investors are just as excited about the team, scaling the business, and new customers as I am.”

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Acutronic Robotics fails to find funding for H-ROS for robot hardware

Acutronic Robotics today announced on its blog that it is shutting down on July 31. The company, which has offices in Switzerland and Spain, offered communication tools based on the Robot Operating System for modular robot design.

The company, which was founded in 2016 after Acutronic Link Robotics AG’s acquisition of Erle Robotics, said it had been waiting on financing. Acutronic Robotics was developing the Hardware Robot Operating System or H-ROS, a communication bus to enable robot hardware to interoperate smoothly, securely, and safely.

Components of Acutronic’s technology included the H-ROS System on Module (SoM) device for the bus, ROS2 as the “universal robot language” and application programming interface, and the Hardware Robot Information Model (HRIM) as a common ROS dialect.

Acutronic was involved in the development of the open-source ROS2 and was recently named a “Top 10 ROS-based robotics company” for 2019. The company built MARA, the first robot natively running on ROS2.

In January, Acutronic Robotics said that it had made grippers from Robotiq “seamlessly interoperable with all other ROS2-speaking robotic components, regardless of their original manufacturer.”

Acutronic Robotics H-ROS

H-ROS was intended to make robot hardware work together more easily. Source: Acutronic Robotics

Funding challenges

HRIM was funded through the EU’s ROS-Industrial (ROSIN) project, and the U.S. Defense Advanced Projects Research Agency (DARPA) had invested in H-ROS.

In September 2017, Acutronic raised an unspecified amount of Series A funding led by the Sony Innovation Fund. More recently, however, the company had difficulty finding venture capital.

“We continue to believe that our robot modularity technology and vision are relevant strategically speaking, both product and positioning wise,” stated Victor Mayoral, CEO of Acutronic Robotics. however we probably hit the market too early and fell short of resources.”

According to Acutronic’s blog post, the company received acquisition proposals but was unable to agree to any of them.

The global robot operating system market will experience a compound annual growth rate of 8.8% between 2018 and 2026, predicts Transparency Market Research. However, that forecast includes proprietary industrial software and customized robots.

Other ROS-related news today included Freedom Robotics’ seed funding and Fetch Robotics’ Series C. As The Robot Report previously reported, AWS RoboMaker works with ROS Industrial, and Microsoft recently announced support for ROS in Windows 10.

Uncertain future for Acutronic team

Mayoral didn’t specify what would happen to Acutronic Robotics’ approximately 30 staffers or its intellectual property, but he tried to end on an optimistic note.

“We are absolutely convinced that ROS is a key blueprint for the future of robotics,” Mayoral said. “The ROS robotics community has been a constant inspiration for all of us over these past years, and I’m sure that with the new ROS 2, many more companies will be inspired in the same way. Our team members are excited about their next professional steps, and I’m sure many of us will stay very close to the ROS community.”

Acutronic Robotics staff

The Acutronic Robotics team. Source: Acutronic

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Smart manufacturing trends analyzed in GP Bullhound report

Smart manufacturing trends analyzed in new GP Bullhound report

Smart manufacturing investments. Source: GP Bullhound

Continuing improvements in software and hardware are leading to trends such as Manufacturing-as-a-Service, hyper-personalization of products on demand, and a reinvention of the capital goods economy, found a new study. Last month, GP Bullhound issued a new report titled “Smart Manufacturing: The Rise of the Machines.”

The report provided a global, in-depth look at how smart manufacturing gained momentum between 2013 and 2018. It also drew conclusions about the potential future for manufacturing in terms of growth, investment, and the value of data. With robotics still largely serving manufacturing, engineers can get a glimpse of trends for which to prepare.

GP Bullhound reviewed the value of smart manufacturing transactions. China and Japan have led in smart manufacturing, with a market value of $28 billion, according to the technology advisory and investment firm. Europe followed with $24 billion, and the U.S. lagged at $20 billion.

The report found 1,300 venture capital transactions worldwide, worth a total of $17.4 billion. The U.S. led in investments, with American startups receiving $11.4 billion, compared with $3.9 billion in Asia and $2.1 billion in Europe. GP Bullhound also found $37.7 billion in mergers and acquisitions during the five-year period.

Venture funding in smart manufacturing by region

Sources: Pitchbook, Capital IQ, company websites, press releases, GP Bullhound

In addition, the report noted that data is growing in value, despite debates over how and whether production should be automated.

Dr. Nikolas Westphal, director at GP Bullhound, answered several questions from The Robot Report about the study’s findings:

Whether we call it “smart manufacturing,” “Industry 4.0,” or something else, the combination of machine learning, big data, the Internet of Things (IoT), and robotics is arriving, according to your report. But how ready are most companies — especially those outside the electronics and automotive verticals — for it?

Westphal: Smart manufacturing readiness is something that we discussed with several of our interview partners, including interviewees from leading European software houses and IoT platforms.

The current state seems to be that most OEMs are substantially increasing the density of IoT devices within their equipment in order to make it “smart” and are also working on the required digital platforms. As “smart” equipment proliferates, more and more manufacturing operators of all sizes will start to increasingly use methodologies of smart manufacturing.

Annual data creation in smart manufacturing

Source: GP Bullhound

When it comes to digitization by industry, our research indeed indicates that electronics and automotive are furthest down the line on the journey to end-to-end digitization. In general, I would say that today, industries with the highest scale effects are also the most automated. With the emergence of smaller, more flexible robotic equipment — such as collaborative robots, additive manufacturing, and data-driven factory design — we believe that also smaller players will be able to reap the rewards of smart automation.

Some of the companies featured in our report actually address this challenge for companies of all sizes. One example for this is Oden Technologies, which is featured in Section 2 of our report.

Investments in robotics and startups have slowed in the past quarter, but do you think that’s temporary and why?

Westphal: Quarterly VC funding data is notoriously hard to interpret, as it follows transaction cycles. Applying our search criteria for smart manufacturing startups, global VC funding in smart manufacturing in Q1 2019 has stood at €1.02 billion ($1.14 billion U.S.) across 73 deals versus €1.07 billion ($1.2 billion U.S.) in Q4 2018 [Source: Pitchbook]. As there is somewhat of a reporting lag, I expect the Q1 2019 figure to be gradually adjusted upward throughout the year.

Global smart manufacturing trends

Source: GP Bullhound

How might a cyclical economic recession affect spending on industrial automation and smart manufacturing?

Westphal: I believe that a recession may not necessarily long-term impact investments into industrial automation specifically.  While replacement cycles may somewhat slow, efficiency will be increasingly important in a recession situation.

The section on productivity gains from smart manufacturing cites Volvo as an example. How is Volvo’s use of robots part of a technology cluster?

Westphal: The tables and the case studies were supplied by our feature partner Accenture. On the left-hand side of both Figure 1 and 2, you can see the different relevant technologies, on the right-hand side different industry verticals. The percentages indicate the incremental cost savings per employee in Figure 1 as well as the projected implied additional gains in market capitalization in Figure 2.

For example, in automotive, autonomous robots and AI seem to have the biggest impact, in addition to 3D printing, blockchain, and big data. Overall, Accenture believes that the combinatory effect of these technologies will add up to incremental cost savings per employee of 13.9% for automotive.

How much is simulation software being applied to the design and implementation of robotics? How far are we from “lights-out” manufacturing? 

Westphal: This question is addressed to some extent by the feature of Brian Mathews of Bright Machines. Once the computer vision and control challenges have been addressed, lights out manufacturing should become a reality.

Design and simulation in smart manufacturing

Source: GP Bullhound

Several robotics vendors have told us that they want to “keep humans in the loop,” so what sorts of processes are better for collaboration vs. full autonomy with “software-defined” manufacturing?

Westphal: From our interviews on the topic, it seems to me that high-volume, repetitive, but complex processes that require a high degree of accuracy are well-suited for full autonomy, while processes that require a high degree of versatility are better suited for collaboration.

In noteworthy mergers and acquisitions, why was Teradyne’s acquisition of Universal Robots included but not the creation of OnRobot or Honeywell‘s purchase of Intelligrated. Was there a reason for the omissions?

Westphal: The Teradyne-Universal Robots deal is featured on p. 33. Honeywell/Intelligrated is part of our database but not featured in the selected landmark transactions. We have not only selected those by size, but also other criteria like sector fit and visibility.

The creation of OnRobot is not shown in Section 3 as we weren’t able to find publicly available data on funding amount. OnRobot itself is featured as a notable company on p. 63 of the report.

Will trade tensions between the West and China slow the trend to cross-border consolidation?

Westphal: It seems that Chinese outbound investment is really geared towards utilizing technologies in China’s huge manufacturing sector. Especially as Europe does not seem to engage in restrictive trade policies with China (yet), I would expect this trend to continue.

Cross-border deals in smart manufacturing

Cross-border deals. Source: GP Bullhound

Since GP Bullhound is watching investments in hardware and the software stack around smart manufacturing, has it identified any strategic leaders?

Westphal: We don’t provide investment advice. A selection of companies that we find interesting can be found on p. 62 and 63 of the report.

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20 largest robotics investments during 1st half of 2019


robotics investments

An autonomous, all-electric Chevrolet Bolt from Cruise, which raised $1.15 billion in May 2019. | Credit: Cruise

Robotics companies raised more than $15.6 billion during the first half of 2019. According to the robotics investments tracked and verified by The Robot Report, more than $2.6 billion was raised on average per month. The year started slowly with $644 million raised in January, but there was at least $1.3 billion raised each month thereafter.

For The Robot Report‘s investment analysis, autonomous vehicles, including technologies that support autonomous driving, and drones are considered robots. On the other hand, 3D printers, CNC systems, and various types of “hard” automation are not.

Robotics Investments for First 6 Months of 2019

MonthInvestment Amount
January$644M
February$4.3B
March$1.3B
April$6.5B
May$1.5B
June$1.4B
Yearly Total$15.64B

As you can see in the table below, autonomous vehicle investments made up a significant percentage of overall funding. Ten of the top 20 robotics investments tracked by The Robot Report belonged to companies producing autonomous vehicles or autonomous vehicle enabling technologies. Autonomous vehicle companies raised 55% ($4.6 billion) of the total $8.2 billion raised in the 20 investments. The top three autonomous vehicle investments belonged to Cruise ($1.15 billion), Uber ($1 billion) and Nuro ($940 million), which raised a combined $3.1 billion.

Healthcare robotics companies have also fared well in 2019. Intuitive Surgical raised $2 billion via a stock repurchase in February, while Think Surgical and Ekso Bionics raised $134 million and $100 million, respectively. HistoSonics raised $54 million in April for its medical robotics platform that destroy cancerous tumors without affecting surrounding tissue.

The Robot Report will have a detailed breakdown of investments by sector in a follow-up article.

To stay updated about the latest robotics investments and acquisitions, check out The Robot Report‘s Investment Section.

20 Largest Robotics Investments During 1st Half of 2019

CompanyFunding (M$)Lead InvestorDateTechnology
Intuitive Surgical 2000Stock Repurchase2/1/19Surgical Robots
Cruise1150Honda Motor Corp.5/7/19Autonomous Vehicles
Uber ATG1000SoftBank Vision Fund4/18/19Autonomous Vehicles
Nuro.ai940SoftBank Vision Fund2/11/19Autonomous Vehicles
Horizon Robotics600SK China2/27/19AI/IOT
Aurora Innovation600Amazon2/7/19Autonomous Vehicles
Weltmeister Motor450Baidu Inc.3/11/19Autonomous Vehicles
Cloudminds300SoftBank Vision Fund3/26/19Service Robots
Zipline190TPG5/17/19Drone Delivery
Innoviz Technologies170China Merchants Capital3/26/19LiDAR
Think Surgical1343/11/19Surgical Robots
Beijing Auto AI Technology104Robert Bosch Venture Capital1/24/19AI
Black Sesame Technologies100Legend Capital4/15/2019Machine Learning
Ekso Bionics Holdings100Zhejiang Youchuang Venture Capital Investment Co.1/30/19Exoskeletons
TUSimple95Sina Corp2/13/19Autonomous Vehicles
Ouster60Runway Growth Capital3/25/19LiDAR
NASN Automotive59.6Matrix Partners China1/30/19Autonomous Vehicles
HistoSonics54Varian Medical4/8/19Medical Robots
Ike52Bain Capital Ventures2/5/19Autonomous Vehicles
Enflame43.4Redpoint China Ventures6/6/2019AI Chipmaker

Editors note: What defines robotics investments? The answer to this simple question is central in any attempt to quantify robotics investments with some degree of rigor. To make investment analyses consistent, repeatable, and valuable, it is critical to wring out as much subjectivity as possible during the evaluation process. This begins with a definition of terms and a description of assumptions.

Investors and investing
Investment should come from venture capital firms, corporate investment groups, angel investors, and other sources. Friends-and-family investments, government/non-governmental agency grants, and crowd-sourced funding are excluded.

Robotics and intelligent systems companies
Robotics companies must generate or expect to generate revenue from the production of robotics products (that sense, think, and act in the physical world), hardware or software subsystems and enabling technologies for robots, or services supporting robotics devices. For this analysis, autonomous vehicles (including technologies that support autonomous driving) and drones are considered robots, while 3D printers, CNC systems, and various types of “hard” automation are not.

Companies that are “robotic” in name only, or use the term “robot” to describe products and services that that do not enable or support devices acting in the physical world, are excluded. For example, this includes “software robots” and robotic process automation. Many firms have multiple locations in different countries. Company locations given in the analysis are based on the publicly listed headquarters in legal documents, press releases, etc.

Verification
Funding information is collected from a number of public and private sources. These include press releases from corporations and investment groups, corporate briefings, and association and industry publications. In addition, information comes from sessions at conferences and seminars, as well as during private interviews with industry representatives, investors, and others. Unverifiable investments are excluded.

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Robotics investments recap: March 2019

CloudMinds was among the robotics companies receiving funding in March 2019.

CloudMinds was among the robotics companies receiving funding in March 2019. Source: CloudMinds

Investments in robots, autonomous vehicles, and related systems totaled at least $1.3 billion in March 2019, down from $4.3 billion in February. On the other hand, automation companies reported $7.8 billion in mergers and acquisitions last month. While that may represent a slowdown, note that many businesses did not specify the amounts involved in their transactions, of which there were at least 58 in March.

Self-driving cars and trucks — including machine learning and sensor technologies — continued to receive significant funding. Although Lyft’s initial public offering was not directly related to autonomous vehicles, it illustrates the investments flowing for transportation.

Other use cases represented in March 2019 included surgical robotics, industrial automation, and service robots. See the table below, which lists amounts in millions of dollars where they were available:

CompanyAmt. (M$)TypeLead investor, partner, acquirerDateTechnology
Airbiquity15investmentDenso Corp., Toyota Motor Corp., Toyota Tsushu Corp.March 12, 2019connected vehicles
AROMA BIT Inc.2.2Series ASony Innovation FundMarch 3, 2019olofactory sensors
AtomRobotSeries B1Y&R CapitalMarch 5, 2019industrial automation
Automata7.4Series AABB March 19, 2019robot arm
Avidbots23.6Series BTrue VenturesMarch 21, 2019commercial floor cleaning
BoranetSeries AGobi PartnersMarch 6, 2019IIoT, machine vision
Broadmann1711Series AOurCrowdMarch 6, 2019deep learning, autonomous vehicles
Cloudminds300investmentSoftBank Vision FundMarch 26, 2019service robots
Corindus4.8private placementMarch 12, 2019surgical robot
Determined AI11Series AGV (Google Ventures)March 13, 2019AI, deep learning
Emergen Group29Series BQiming Venture PartnersMarch 13, 2019industrial automation
Fabu Technologypre-Series AQingsong FundMarch 1, 2019autonomous vehicles
FortnarecapitalizationThomas H. Lee PArtners LPMarch 27, 2019materlais handling
ForwardX14.95Series BHupang Licheng FundMarch 21, 2019autonomous mobile robots
Gaussian Robotics14.9Series BGrand Flight InvestmentMarch 20, 2019cleaning
Hangzhou Guochen Robot Technology15Series AHongcheng Capital, Yingshi Fund (YS Investment) March 13, 2019robotics R&D
Hangzhou Jimu Technology Co.Series BFlyfot VenturesMarch 6, 2019autonomous vehicles
InnerSpace3.2seedBDC Capital's Women in Technology FundMarch 26, 2019IoT
Innoviz Technologies132Series CChina Merchants Capital, Shenzhen Capital Group, New Alliance CapitalMarch 26, 2019lidar
Intelligent MarkinginvestmentBenjamin CapitalMarch 6, 2019autonomous robots for marking sports fields
Kaarta Inc.6.5Series AGreenSoil Building Innovation FundMarch 21, 2019lidar mapping
Kolmostar Inc.10Series AMarch 5, 2019positioning technology
Linear Labs4.5seedScience Inc., Kindred VenturesMarch 26, 2019motors
MELCO Factory Automation Philippines Inc.2.38new divisionMitsubishi Electric Corp.March 12, 2019industrial automation
Monet Technologies4.51joint ventureHonda Motor Co., Hino Motors Ltd., SoftBank Corp., Toyota Motor CorpMarch 28, 2019self-driving cars
Ouster60investmentRunway Growth Capital, Silicon Valley BankMarch 25, 2019lidar
Pickle Robot Co.3.5equity saleMarch 4, 2019loading robot
Preteckt2seedLos Olas Venture CapitalMarch 26, 2019machine learning automotive
Radar16investmentSound Ventures, NTT Docomo Ventures, Align Ventures, Beanstalk Ventures, Colle Capital, Founders Fund Pathfinder, Novel TMTMarch 28, 2019RFID inventory management
Revvo (IntelliTire)4Series ANorwest Venture PartnersMarch 26, 2019smart tires
Shanghai Changren Information Technology14.89Series AMarch 15, 2019Xiaobao healthcare robot
TakeOff Technologies Inc.equity saleMarch 26, 2019grocery robots
TartanSense2seedOmnivore, Blume Ventures, BEENEXTMarch 11, 2019weeding robot
Teraki2.3investmentHorizon Ventures, American Family VenturesMarch 27, 2019AI, automotive electronics
Think Surgical134investmentMarch 11, 2019surgical robot
Titan Medical25IPOMarch 22, 2019surgical robotics
TMiRobSeries B+Shanghai Zhangjiang Torch Venture Capital March 26, 2019hospital robot
TOYO Automation Co.investmentYamaha Motor Co.March 20, 2019actuators
UbtechinvestmentLiangjiang CapitalMarch 6, 2019humanoid
Vintra4.8investmentBonfire Ventures, Vertex Ventures, London Venture PartnersMarch 11, 2019machine vision
Vtrus2.9investmentMarch 8, 2019drone inspection
Weltmeister Motor450Series CBaidu Inc.March 11, 2019self-driving cars

And here are the mergers and acquisitions:

March 2019 robotics acquisitions

CompanyAmt. (M$)AcquirerDateTechnology
Accelerated DynamicsAnimal Dynamics3/8/2019AI, drone swarms
Astori AS4Subsea3/19/2019undersea control systems
BrainlabSmith & Nephew3/12/2019surgical robot
Figure Eight175Appen Ltd.3/10/2019AI, machine learning
Floating Point FXCycloMedia3/7/2019machine vision, 3D modeling
Florida Turbine Technologies60Kratos Defense and Security Solutions3/1/2019drones
Infinity Augmented RealityAlibaba Group Holding Ltd.3/21/2019AR, machine vision
Integrated Device Technology Inc.6700Renesas3/30/2019self-driving vehicle processors
MedineeringBrainlab3/20/2019surgical
Modern Robotics Inc.0.97Boxlight Corp.3/14/2019STEM
OMNI Orthopaedics Inc.Corin Group3/6/2019surgical robotics
OrthoSpace Ltd.220Stryker Corp.3/14/2019surgical robotics
Osiris Therapeutics660Smith & Nephew3/12/2019surgical robotics
Restoration Robotics Inc.21Venus Concept Ltd.3/15/2019surgical robotics
Sofar Ocean Technologies7Spoondrift, OpenROV3/28/2019underwater drones, sensors
Torc Robotics Inc.Daimler Trucks and Buses Holding Inc.3/29/2019driverless truck software

Surgical robots make the cut

One of the largest transactions reported in March 2019 was Smith & Nephew’s purchase of Osiris Therapeutics for $660 million. However, some Osiris shareholders are suing to block the acquisition because they believe the price that U.K.-based Smith & Nephew is offering is too low. The shareholders’ confidence reflects a hot healthcare robotics space, where capital, consolidation, and chasing new applications are driving factors.

In the meantime, Stryker Corp. bought sports medicine provider OrthoSpace Ltd. for $220 million. The market for sports medicine will experience a compound annual growth rate of 8.9% between now and 2023, predicts Market Research Future.

Freemont, Calif.-based Think Surgical raised $134 million for its robot-assisted orthopedic surgical device, and Titan Medical closed a $25 million public offering last month.

Venus Concept Ltd. merged with hair-implant provider Restoration Robotics for $21 million, and Shanghai Changren Information Technology raised Series A funding of $14.89 million for its Xiaobao healthcare robot.

Corindus Vascular Robotics Inc. added $5 million to the $15 million it had raised the month before. Brainlab acquired Medineering and was itself acquired by Smith & Nephew.

Driving toward automation in March 2019

Aside from Lyft, the biggest reported transportation robotics transaction in March 2019 was Renesas’ completion of its $6.7 billion purchase of Integrated Device Technology Inc. for its self-driving car chips.

The next biggest deal was Weltmeister Motor’s $450 million Series C, in which Baidu Inc. participated.

Lidar also got some support, with Innoviz Technologies raising $132 million in a Series C round, and Ouster raising $60 million. In a prime example of how driverless technology is “paying a peace dividend” to other applications, Google parent Alphabet’s Waymo unit offered its custom lidar sensors to robotics, security, and agricultural companies.

Automakers recognize the need for 3-D modeling, sensors, and software for autonomous vehicles to navigate safely and accurately. A Daimler unit acquired Torc Robotics Inc., which is working on driverless trucks, and CycloMedia acquired machine vision firm Floating Point FX. The amounts were not specified.

Speaking of machine learning, Appen Ltd. acquired dataset annotation company Figure Eight for $175 million, with an possible $125 million more based on 2019 performance. Denso Corp. and Toyota Motor Corp. contributed $15 million to Airbiquity, which is working on connected vehicles.

Service robots clean up

From retail to cleaning and customer service, the combination of improving human-machine interactions, ongoing staffing turnover and shortages, and companies with round-the-clock operations has contributed to investor interest.

The SoftBank Vision Fund participated in a $300 million round for CloudMinds. The Chinese AI and robotics company’s XR-1 is a humanoid service robot, and it also makes security robots and connects robots to the cloud.

According to its filing with the U.S. Securities and Exchange Commission, TakeOff Technologies Inc. raised an unspecified amount for its grocery robots, an area that many observers expect to grow as consumers become more accustomed to getting home deliveries.

On the cleaning side, Avidbots raised $23.6 million in Series B, led by True Ventures. Gaussian Robotics’ Series B was $14.9 million, with participation from Grand Flight Investment.

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Wrapping up Q1 2019

China’s efforts to develop its domestic robotics industry continued, as Emergen Group’s $29 million Series B round was the largest reported investment in industrial automation last month.

Hangzhou Guochen Robot Technology raised $15 million in Series A funding for robotics research and development and integration.

That was followed by ABB’s participation in Series A funding of $7.4 million for Automata, which makes a small collaborative robot arm named Ava. Mitsubishi Electric Corp. said it’s spending $2.38 million to set up a new company, MELCO Factory Automation Philippines Inc., because it expects to grow its business there to $30 million by 2026.

Data startup Spopondrift and underwater drone maker OpenROV merged to form Sofar Ocean Technologies. The new San Francisco company also announced a Series A round of $7 million. Also, 4Subsea acquired underwater control systems maker Astori AS.

In the aerial drone space, Kratos Defense and Security Solutions acquired Florida Turbine Technologies for $60 million, and Vtrus raised $2.9 million for commercializing drone inspections. Kaarta Inc., which makes a lidar for indoor mapping, raised $6.5 million.

The Robot Report broke the news of Aria Insights, formerly known as CyPhy Works, shutting down in March 2019.


Editors Note: What defines robotics investments? The answer to this simple question is central in any attempt to quantify robotics investments with some degree of rigor. To make investment analyses consistent, repeatable, and valuable, it is critical to wring out as much subjectivity as possible during the evaluation process. This begins with a definition of terms and a description of assumptions.

Investors and Investing
Investment should come from venture capital firms, corporate investment groups, angel investors, and other sources. Friends-and-family investments, government/non-governmental agency grants, and crowd-sourced funding are excluded.

Robotics and Intelligent Systems Companies
Robotics companies must generate or expect to generate revenue from the production of robotics products (that sense, think, and act in the physical world), hardware or software subsystems and enabling technologies for robots, or services supporting robotics devices. For this analysis, autonomous vehicles (including technologies that support autonomous driving) and drones are considered robots, while 3D printers, CNC systems, and various types of “hard” automation are not.

Companies that are “robotic” in name only, or use the term “robot” to describe products and services that that do not enable or support devices acting in the physical world, are excluded. For example, this includes “software robots” and robotic process automation. Many firms have multiple locations in different countries. Company locations given in the analysis are based on the publicly listed headquarters in legal documents, press releases, etc.

Verification
Funding information is collected from a number of public and private sources. These include press releases from corporations and investment groups, corporate briefings, and association and industry publications. In addition, information comes from sessions at conferences and seminars, as well as during private interviews with industry representatives, investors, and others. Unverifiable investments are excluded.

The post Robotics investments recap: March 2019 appeared first on The Robot Report.

Robotics cluster in Odense, Denmark, offers metrics for growth

Robotics cluster in Odense, Denmark, offers metrics for growth

What makes a robotics cluster successful? Proximity to university research and talent, government support of entrepreneurship, and a focus on industry end users are all important. Around the world, regions have proclaimed initiatives to become “the next Silicon Valley.” However, there have been relatively few metrics to describe robotics hubs — until now.

This week, Odense Robotics in Denmark released a report on the economic returns generated by its member companies. Both the amount of exports and the number of employees have increased by about 50 percent, according to Mikkel Christoffersen, business manager at Odense Robotics.

At the same time, the report is realistic about the ongoing challenges facing every robotics cluster, including finding qualified job candidates. As locales from India to Israel and Canada to China look to stimulate innovation, they should look at their own mixes of people, partnerships, and economic performance.

Membership and money

The Odense robotics cluster currently has 129 member companies and more than 10 research and educational institutions. That’s up from 85 in 2015 and comparable with Massachusetts, which is home to more than 150 robotics companies. The Massachusetts Robotics Cluster said it had 122 members as of 2016.

Silicon Valley Robotics says it has supported 325 robot startups, and “Roboburgh” in Pittsburgh includes more than 50 organizations..

In terms of economic performance, the Odense robotics cluster had 763 million euros ($866.3 million U.S.) in turnover, or revenue, in 2017. It expects another 20 percent increase by 2021.

Odense has been friendly to startups, with 64 founded since 2010. The Odense Robotics StartUp Hub has helped to launch 15 companies. Seventy companies, or 54 percent, of those in the Odense area have fewer than 10 employees.

Total investments in the Danish robotics cluster have risen from 322 million euros ($365.6 million) in 2015 to 750 million euros ($851.7 million) last year, with 42 percent coming from investors rather than public funding or loans.

Funding for companies in the Odense robotics cluster continues to rise.

Source: Odense Robotics

In addition, 71 local companies were robotics producers, up from 58 in 2017. The next largest category was integrators at 23. The region also boasted 509 million euros ($577.9 million) in exports in 2017, and 66 percent of its members expect to begin exports.

Market focus

The Odense Robotics report notes that a third of its member companies work with collaborative and mobile robots, representing its focus on manufacturing and supply chain customers. Those are both areas of especially rapid growth in the wider robotics ecosystem.

The global collaborative robotics market will experience a compound annual growth rate (CAGR) of 49.8 percent between 2016 and 2025, compared with a CAGR of 12.1 percent for industrial robots, predicts ABI Research. Demand from small and midsize enterprises will lead revenues to exceed $1.23 billion in 2025, said ABI.

Odense-based Universal Robots A/S is the global market leader in cobot arms. Odense-based gripper maker OnRobot A/S was formed last year by the merger of three companies, and it has since acquired Purple Robotics and raised hundreds of millions in additional funding.

OnRobot Grippers

OnRobot’s lineup of robotic grippers. Source: OnRobot

Similarly, the market for autonomous mobile robots will have a 24 percent CAGR between 2018 and 2022, according to a Technavio forecast. Odense-based Mobile Industrial Robots ApS (MiR) has tripled its sales in each of the past two years.

Both Universal Robots and MiR have broadened their international reach, thanks to ownership by Teradyne Inc. in North Reading, Mass.

Robotics cluster must address talent shortage

Odense Robotics said that its robotics cluster employs 3,600 people today and expects that figure to rise to 4,900 by next year. In comparison, the Massachusetts robotics cluster employed about 4,700 people in 2016.

Odense robotics cluster employee growth

The Danish robotics cluster is a significant employer. Source: Odense Robotics

Even as the numbers of people grow at larger robotics companies (with 50 or more employees) or abroad, businesses in southern Denmark have to look far afield to meet their staffing needs. More than a third, or 39 percent, said they expect to hire from outside of Denmark, and 78 percent said that finding qualified recruits is the biggest barrier to growth.

The average age of employees in the Odense robotics cluster reflects experience, as well as difficulty recruiting. Fifty-five percent of them are age 40 to 60, while only 18 percent are under 30.

This reflects a larger problem for robotics developers and vendors. Even with STEM (science, technology, engineering, and mathematics) programs and attention paid to education, the demand for hardware and software engineers worldwide outstrips the available pool.

The University of Southern Denmark (SDU) is working to address this. It has increased admissions for its bachelor’s degrees in engineering and science and master’s of science programs from 930 in 2015 to 1,235 last year. The university also launched a bachelor’s in engineering for robot systems, admitting 150 students since 2017.

Robotics cluster in Odense includes DTI

The Danish Technological Institute is expanding its facilities in Odense this year. Source: DTI

Another positive development that other robotics clusters can learn from Odense is that 41 percent of workers at robotics firms there went to vocational schools rather than universities.

Partnerships and prospects

Close collaboration with research institutions, fellow robotics cluster members, and international companies has helped the Odense hub grow. Seventy eight percent of cluster members collaborate among themselves, according to the report. Also, 38 percent collaborate with more than 10 companies.

The Odense robotics cluster grew out of a partnership between shipping giant Maersk A/S and SDU. The Maersk Mc-Kinney Moller Institute at SDU continues to conduct research into robotics, artificial intelligence, and systems for healthcare and the energy industry. It recently added aerial drones, soft robotics, and virtual reality to its portfolio.

Last year, the institute invested 13.4 million euros ($15.22 million) in an Industry 4.0 laboratory, and an SDU team won in the industrial robot category at the World Robot Summit Challenge in Japan.

Examples such as Universal Robots and MiR, as well as Denmark’s central position in Northern Europe, are encouraging companies to look for partners. Collaborating with companies inside and outside the Odense robotics cluster is a top priority of members, with 98 percent planning to make it a strategic focus in the next three years.

Of course, the big opportunity and competitive challenge is China, which is potentially a much bigger market than the U.S. or Europe and is trying to build up its own base of more than 800 robotics companies.

It’s only through collective action around robotics clusters that smart regions, large and small, can find their niches, build talent, and maximize the returns on their investments.

Editor’s note: A panel at the Robotics Summit & Expo in Boston on June 5 and 6, 2019, will feature speakers from different robotics clusters. Register now to attend.

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