Robotics startup creation could be volatile during downturn

The trend: Robotic deployments are rising in a wide range of sectors, igniting an appetite for startup creation.

• Although tracking behind last year’s showing, VC investment is still steadily flowing to robotics startups, per Crunchbase.
• Amazon’s bullishness on warehouse bots is helping fuel robotics startup creation aimed at the ecommerce sector, per TechCrunch.
• However, broader tech turmoil has triggered layoffs at Starship, Pudu Robotics, and Nuro. Also, Doordash is shutting down Chowbotics, the food robotics startup it recently acquired.

Top startups to watch: Technological advances in recent years have provided startups with a solid foundation to build a more diverse army of bots for deployment across industries. Here are some getting attention.

Apptronik: This Austin-based startup is working on a commercially viable humanoid robot that can work alongside humans. It raised $14.6 million in seed money to accelerate its collaborative robotics systems that enable adaptable robots to safely operate in unstructured environments.

Xpeng Robotics: In a bid to fulfill the quintessential childhood dream of owning a pony, this startup—backed by Tesla rival Xpeng—raised $100 million in a Series A round to build a rideable robot unicorn for children. It can also reportedly function as a service robot, transporting snacks in offices.

Indoor Robotics: In keeping with rising interest in corporate surveillance, this startup pulled in $15 million in a Series A round. The funding will help Indoor move forward on production of its indoor security robotic Tando, which can map and navigate indoor spaces like offices or malls to detect threats. When not roaming, it can dock on ceilings as a security camera.

FORT Robotics: Working to make robots in industrial settings safer, this startup raised $25 million in a Series B funding. It plans to use the funds to advance development of its FORT Platform, a machine communications system that allows critical messages to be sent between bots in chaotic environments like construction sites.

iCOBOTS: This startup is part of a larger development of soft robotics in response to demand for bots that can handle delicate applications. It equipped a line of collaborative robots with a soft-gripping system that reduces the need for advanced vision systems and calculated movements.

What’s next? Because the subsector is capital-intensive and requires extensive R&D, specialized talent, and suitable lab space to get off the ground, robotics startup creation is vulnerable to market fluctuations.

• However, the labor shortage and recent moves by companies to cut overhead costs means the push for more robotics and automation deployment will likely remain strong.
• More investment in robotics incubators by universities and other organizations could help give budding entrepreneurs a boost.
• We’ll likely see continued demand for collaborative robots that can safely work around humans, especially in ecommerce and manufacturing facilities.

Xpeng Robotics’ unicorn pony robot. (Source: Business Wire)