Robotics: A Billion Dollar Market in Motion

Seth Winterroth, partner at Eclipse Ventures, has had a remarkable career path. When he left GE Ventures in 2015 to start Eclipse, the world of robotics startups seemed to be at a dead end. Talents from renowned institutions like CMU or MIT struggled to attract institutional investors. At that time, most of the capital was invested in mature software platforms. But the tide has turned. Today, ten years later, the investment timing for robotics is ideal. The market has matured, the technology has improved, and it has become more affordable. The capital flow into robotics startups is gaining momentum: according to Crunchbase data, six billion US dollars flowed into this sector over seven months in 2025. It is expected that robo-investments will surpass those in 2024, making it one of the few non-AI segments experiencing growth. But how did this boom come about? Back in 2013, Amazon's acquisition of Kiva Systems marked a turning point. This acquisition inspired a wave of new companies. Names like 6 River Systems and Clearpath Robotics were born. While some failed, others used the lessons learned to forge new paths. Kira Noodleman from Bee Partners highlights that trial and error have brought the robotics market closer to meeting demands. Companies like Rapid Robotics had to shut down, but the insights gained are helping the next generation of founders. The concept of "lights-out manufacturing," where no humans are needed, has proven unrealistic. Nevertheless, there are numerous repetitive tasks, such as loading machines, that can be automated. With declining hardware costs and interest in AI, opportunities are increasing, notes Fady Saad of Cybernetix Ventures. Particularly, vertically focused robotics companies benefit from practical data. Robots in healthcare and elder care offer a promising investment area, compared to humanoid consumer robots, which have not yet shown significant demand. Saad remains skeptical about whether consumers would truly accept robots at home, as successful consumer robotics companies, such as iRobot, have so far been unable to deliver sustainable secondary momentum. While the industry still needs time to reach commercial maturity for more complex models, the increased interest in robotics remains a pure gain for all involved. The customer base is steadily growing, and numerous successful commercial organizations now exist.