In Late December 2016 Rethink Robotics, supplier of Co-Bots secured an additional US$ 18 million investment. The new round, despite being somewhat short of the US$ 33 million sought as indicated by their SEC filing, included funding from the Swiss headquartered private equity investment firm, Adveq, as well as contributions from all previous investors, including Bezos Expeditions, CRV, Highland Capital Partners, Sigma Partners, DFJ, Two Sigma Ventures, GE Ventures and Goldman Sachs.
I think that Rethink’s Baxter and Sawyer robots are setting a new standard in advanced robotics for businesses of all sizes – the only downside is that Rethink sub contract the manufacturing of their robots which gives them less control of delivery scheduling and has possibly considerably hindered their over all growth, cash flow outlays and profitably. This could reflect, in a very hot growth market, the less than enthusiastic take up by new investors and indeed appetite for considerably increasing investment from existing investors. However in the coming months I would expect Rethink would secure the additional US$ 15 million they seek, maybe via Asian manufacturing partners, a region that is becoming increasingly important for Rethink as they endeavor to capture a larger share of the co-bot market.
In addition to Rethink’s new investment – a very interesting, relative, new comer to the industrial robotic manufacturing scene, the Advanced Robotics Manufacturing (ARM) Institute, a U.S. national, public-private partnership, has announced funding of US$ 250 million.
The U.S. Department of Defense awarded the public-private Manufacturing USA institute to American Robotics, a nonprofit venture led by Carnegie Mellon, with more than 230 partners in industry, academia, government and the nonprofit sector across the U.S. The institute will receive $80 million from the DOD, and an additional $173 million from the partner organizations.
Based in Pittsburgh, ARM is led by a newly established national nonprofit called American Robotics, which was founded by Carnegie Mellon University and includes a national network of 231 stakeholders from industry, academia, local governments and nonprofits.
The mission of ARM is essentially four-pronged. To 1) empower American workers to compete with low-wage workers abroad; 2) create and sustain new jobs to secure U.S. national prosperity; 3) lower the technical, operational, and economic barriers for small- and medium- sized enterprises as well as large companies to adopt robotics technologies; and 4) assert U.S. leadership in advanced manufacturing.
ARM’s 10-year goals include increasing worker productivity by 30 percent, creating 510,000 new manufacturing jobs in the U.S., ensuring that 30 percent of SMEs adopt robotics technology, and providing the ecosystem where major industrial robotics manufacturers will emerge.
These investments keep robotics on course to be one of the main investment areas for improving manufacturing productivity and indeed increasing jobs and corporate profitability.
The ARM investment sounds very similar to those of the EU’s public / private initiative announced in June 2014, albeit that is a Euro 2.8 billion initiative and less ambitious, but very worthy, target of adding 240,000 new jobs.
Photo: ARM Institute impact