Continuous raising B is challenging for any startup right now, with many VCs pulling back on investments – funding for Series B rounds across all sectors was down 55% in August from a year ago.
But developing Series B for a hardware startup can be more difficult. Compared to software-only ventures, robotics has always been more difficult to get venture investors to fund a robotics project, given its higher capital requirements and higher risk.
However, if a robotics startup has a solid business model, measurable metrics, and a plan for the next 18 months, scaling will be much easier. As an investor in AI and automation companies for over 20 years, I’ve backed dozens of robotics companies, and I continue to be bullish on the space.
You need to show customers that they’re getting real value from your robots – whether it’s saving them time, money, or both.
Here are several strategies founders can use to prepare their robotics company for a successful Series B.
Show how your robot works
Robots are visual by nature (can anyone forget that Boston Dynamics robots dance video?), so when pitching VCs to your automation company, it’s useful to show your robots in action.
If your robots are large installations in warehouses or on production lines, invite VCs to see them in action. If you are too small to transport, bring them to the pitch meeting. And always have high-quality video to share on a computer or tablet, whether in person or online for virtual meetings. It’s important to see your product in action to get investors excited about it.
