In the News
Like the Internet, innovations in robotics and artificial intelligence are increasingly affecting the global economy and society. Now is the time for venture capital funding to flow to tomorrow’s technology leaders.
Today, industrial automation performs at least 10 percent of manufacturing tasks. By 2025, its application in the manufacturing sector is expected to reach 40 percent, according to a report by Bank of America and Merrill Lynch.
Ark Invest’s “The Future of Automation“ report predicts that at least 50 percent of U.S. jobs will be automated by 2035. Growth in real GDP resulting from automation is expected to double, from $113,000 in 2013 to $236,000 in 2035 per worker in the U.S. alone.
Investments in robotics have been increasing steadily at a 17 percent annual rate in the U.S. In 2015 alone, venture capital funding for robotics stood at $922 million, about three times the amount raised in 2014.
Despite these trends, robotics funding is still low compared to the growing demand for robots, drones, and other forms of automation. To cope with this demand, robotics companies need help from brave investors as they develop new applications for these technologies.
Here are four ways to attract venture capital funding for robotics from venture capitalists:
1. Identify a specific niche
Robots are incredibly resourceful. Mobile robots and manipulators can automate tasks in different markets, including construction and materials handling. Identifying a specific niche allows entrepreneurs to develop better products and monitor the market’s response.
It also enables them to identify venture capital firms that want to invest specific types of robots. Having a specific niche makes it easier to prepare and present a business plan that VC firms understand better.
2. Assemble quality teams
Venture capitalists invest in teams rather than business ideas or products. To attract venture capital funding, you need to...