Robohub.org
 

Why robot startups now? Part 1


by
10 May 2012



share this:

Now is the right time for robot startups. Why? The reasons range from changes within robotics to changes in the broader financial and technological environment. There is a critical mass which we believe has been reached. This list attempts to capture the zeitgeist and define all the reasons why we’ve hit the tipping point. I started out with 4 or 5 reasons. I’ve got 10 or more now.

1. Disruptions to funding models
2. Broader financial climate
3. Maturity of robotics technology (backlog of product)
4. Increasing modularity vs commonality
5. Decreasing cost of sensors (and other components – via democratizing/sanguine)
6. Object recognition no longer robotics problem (same as next?)
7. Internet of Things
8. Changing manufacturing/prototyping environment
9. Overall internet/software eats the world (or is this also object recognition?)
10. Lean Startup Methodology
11. Popular discussion = zeitgeist

this list is subject to change :)

1. Disruption to Funding Models

The Kauffman Foundation’s recent report on 20 years of investment in VC funding called it ‘a triumph of hope over experience’.

Venture capital (VC) has delivered poor returns for more than a decade. VC returns haven’t significantly outperformed the public market since the late 1990s, and, since 1997, less cash has been returned to investors than has been invested in VC. Speculation among industry insiders is that the VC model is broken, despite occasional high-profile successes like Groupon, Zynga, LinkedIn, and Facebook in recent years. [1]

Dave McClure from 500 Startups is (in)famous for promoting a ‘spray and pray’ funding style which focusses on making many small early investments, testing often and only keeping the best. However he recently declared that VC’s should be ashamed.

“Because we SUCK at EXACTLY the thing we’re supposed to help entrepreneurs do — build BIG, SCALABLE companies.” [2]

The lean startup mantra of ‘fail fast and cheap, challenge all assumptions’ is shaking up the orthodox investment models. This goes hand in hand with the crowdfunding movement which connects product ideas directly to customers, outsourcing the early stage production funding eg. KickStarter, IndieGoGo, Wefunder, CircleUp, etc.

Crowdfunding sites are springing up like mushrooms since the JOBS (Jumpstart our Business Startup) Act was signed by President Obama on April 5, 2012. Although the details still need some work before the process starts in earnest.

 As the President said at today’s signing, “this bill is a potential gamechanger” for America’s entrepreneurs. For the first time, Americans will be able to go online and invest in small businesses and entrepreneurs. Not only will this help small businesses and high-growth enterprises raise capital more efficiently, but it will also allow small and young firms to expand and hire faster.  [3]

next post: Broader Financial Climate & Maturity of Robotics Technology

  1. http://www.kauffman.org/uploadedFiles/vc-enemy-is-us-report.pdf
  2. http://500.co/2012/04/06/scaling-venture-capital/
  3. http://www.whitehouse.gov/blog/2012/04/05/jobs-act-encouraging-startups-supporting-small-businesses


tags: ,


Andra Keay is the Managing Director of Silicon Valley Robotics, founder of Women in Robotics and is a mentor, investor and advisor to startups, accelerators and think tanks, with a strong interest in commercializing socially positive robotics and AI.
Andra Keay is the Managing Director of Silicon Valley Robotics, founder of Women in Robotics and is a mentor, investor and advisor to startups, accelerators and think tanks, with a strong interest in commercializing socially positive robotics and AI.





Related posts :



Robot Talk Episode 126 – Why are we building humanoid robots?

  20 Jun 2025
In this special live recording at Imperial College London, Claire chatted to Ben Russell, Maryam Banitalebi Dehkordi, and Petar Kormushev about humanoid robotics.

Gearing up for RoboCupJunior: Interview with Ana Patrícia Magalhães

and   18 Jun 2025
We hear from the organiser of RoboCupJunior 2025 and find out how the preparations are going for the event.

Robot Talk Episode 125 – Chatting with robots, with Gabriel Skantze

  13 Jun 2025
In the latest episode of the Robot Talk podcast, Claire chatted to Gabriel Skantze from KTH Royal Institute of Technology about having natural face-to-face conversations with robots.

Preparing for kick-off at RoboCup2025: an interview with General Chair Marco Simões

and   12 Jun 2025
We caught up with Marco to find out what exciting events are in store at this year's RoboCup.

Interview with Amar Halilovic: Explainable AI for robotics

  10 Jun 2025
Find out about Amar's research investigating the generation of explanations for robot actions.

Robot Talk Episode 124 – Robots in the performing arts, with Amy LaViers

  06 Jun 2025
In the latest episode of the Robot Talk podcast, Claire chatted to Amy LaViers from the Robotics, Automation, and Dance Lab about the creative relationship between humans and machines.

Robot Talk Episode 123 – Standardising robot programming, with Nick Thompson

  30 May 2025
In the latest episode of the Robot Talk podcast, Claire chatted to Nick Thompson from BOW about software that makes robots easier to program.

Congratulations to the #AAMAS2025 best paper, best demo, and distinguished dissertation award winners

  29 May 2025
Find out who won the awards presented at the International Conference on Autonomous Agents and Multiagent Systems last week.



 

Robohub is supported by:




Would you like to learn how to tell impactful stories about your robot or AI system?


scicomm
training the next generation of science communicators in robotics & AI


©2025.05 - Association for the Understanding of Artificial Intelligence


 












©2025.05 - Association for the Understanding of Artificial Intelligence