Why investors think hardware is hard

Surprisingly simple answer. And Silicon Valley Robotics for 2023.

Feb 27, 2023

Thankfully there’s a new generation of investors coming up, still with small funds, small checks and limited reach so not seeming to be real competition for the Sequoias yet but Sandhill Rd is a slowly wakening herd of grazing Jareds. And hardware investors are circling the herd looking to pick off LPs like a pack of hungry lionesses. The private equity folks are close behind with their full safari wagons and in their view it’s not hardware, it’s just industrials and that’s always been a good bet.

Seriously, read the bios of mainstream VCs and you’ll see BAs, MBAs, banks and commerce experience and maybe software. Science, hardware and deep tech is not in their background. Thanks to Ian at Cantos Ventures for providing a longer analysis of the subject, including the arbitrage narrative. I knew robotics and deep tech had better talent attraction but I hadn’t priced it into valuations before.

There are also a lot of creative new ways to access funding, some pricier than others. Check out Uncapped, and Mercury for some ways to raise venture debt. And platforms like PropelX take the Angellist idea and then specialize for science based startups. Do you know of other alternative investment platforms?

Interesting things in robotics

If you’re in the Bay Area on Wednesday March 1st stop by InOrbit’s new Robot Space for Bots & Beer and Women in Robotics networking event. The Robot Space has just launched as a hands on robotics showroom as featured in Mercury News.

“We’re really trying to show people how robots work in the real world,” said Florian Pestoni, CEO and co-founder of InOrbit, a company that makes software for robots. “For many people, it’s a new experience and it’s not what you see in movies.”

Applications for the IERA Award close on Feb 28th. The award is jointly sponsored by the International Federation of Robotics and IEEE Robotics and Automation Society. Finalists present their story of a successful innovative product in robotics and automation – from inception to final state of commercialization – in a series of plenary lectures at ICRA 2023 in Londong on June 1st. The winners are then chosen by an evaluation board. The annual award consists of a plaque and a $2,000 honorarium. Application Information

Call for speakers for SEMICON WEST closes on March 1st. Topics include smart manufacturing, smart medical devices, materials, test vision etc. Organized by SEMI.

Call for proposals for ATI Advanced Manufacturing Challenge closes on March 31st. Pitch your technical project proposal to major OEMs and military leadership, representing multi-billion in funded projects seeking dual-use solutions aligned with Naval focused investment areas. Submit Now

Early bird pricing for The Robotics Summit & Expo Boston ends in 8 days. The program of keynotes and general sessions are designed to provide professionals the information they need to successfully develop the next generation of commercial robotics systems. Register Now

Joining Silicon Valley Robotics

Thanks to our new partnership with AMT, the Association for Manufacturing Technology, another (much larger) 501c6 industry association, we can afford to keep membership in Silicon Valley Robotics very low compared to the value we offer. We also scale membership costs so that startups and small companies can afford it.

Since our foundation in 2010 by companies including SRI International, Bosch, Adept Technologies, Intuitive Surgical, NASA and Willow Garage, our mission has been to support innovation and commercialization of robotics technologies. We've seen 2 or 3 person startups transform into world-leading category-creating giants, ushering in the Robotics 2.0 Revolution. We are at the heart of the largest robotics cluster in the world with the best access to capital and talent, helping you build the best robots in the world.

SVR membership allows you to participate in thought leadership events and invitation only networking. We also amplify your company's story. Submit articles and events to us and we will share them. We have great reach into the professional robotics and investment community. The slides and bullet points below capture some key details, and I'm happy to hop on a call to see how we can help you grow.

Startups – we accelerate your success:

'Lending library' of robot arms and sensors
Prototyping facilities and DFM resources
Coworking space and community
Investor introductions and events
Extra marketing through SVR's social reach

Companies – we help you scale:

Post your latest news on SVR
Create full page directory articles
Get connected to more media and expo opportunities
Job board, recruit at networking events and job fairs
Networking events for technical and business topics

SVR Membership Information

Or visit https://svrobo.org/membership

FAQs about the SVR and AMT Merger:

SVR keeps our Board of Directors
SVR adds AMT as a sponsoring member with veto power, similar to our founding members
Backend administration transitions to AMT
Strategy stays with SVR Board
SVR membership is now calendar year

Interested in joining AMT? Here are some of their membership benefits:

Market intelligence via AMT analysts, request market landscape data
Access to Global Tech Hubs in Mexico, China, India and Europe
Discounts at tradeshows like IMTS, FITMA, FORMNEXT USA and SPS (Smart Product Solutions) coming to Atlanta in 2025
see amtonline.org for more information