Credit: Shutterstock
When Seth Winterroth left his role at GE Ventures in 2015 to help launch Eclipse, he had robotics on his radar. Back then, though, the landscape looked very different. Early-stage robotics founders—many just out of postdocs at places like MIT or CMU—were struggling to raise venture capital. Silicon Valley was more interested in pouring money into mature software layers than into machines that moved in the real world.
Fast forward to today, and the story has flipped. Robotics startups aren’t just surviving—they’re thriving. According to Crunchbase, investors funneled $6 billion into robotics companies in just the first seven months of 2025, outpacing last year’s totals. And while AI is certainly playing a role in the hype, robotics insiders say this boom is about much more than clever algorithms.
The spark that started it all
Winterroth traces the roots of this momentum back to 2012, when Amazon acquired Kiva Systems. That deal was a turning point. Suddenly, robotics wasn’t just an academic exercise—it was a strategic advantage for one of the world’s biggest companies. As Winterroth put it, “Kiva’s acquisition was the deal that launched a thousand robotic startups.”
The years that followed were filled with experiments. Some ventures succeeded, many failed, but all contributed to a growing body of know-how. Engineers and entrepreneurs learned hard lessons about product-market fit, customer needs, and realistic expectations for automation. That accumulated experience is now fueling a smarter, stronger generation of startups.
Why now feels different
So what’s changed in 2025? Several things:
-
Cheaper, better hardware: Sensors, batteries, and computing power have all dropped in cost, making it far easier to build and scale robotic systems than it was five years ago.
-
Clearer market needs: Startups now know that “lights out” factories (with no humans at all) aren’t realistic. Instead, there’s huge demand for robots that handle repetitive but simple tasks—like moving parts in and out of machines.
-
Talent recycling: Founders from earlier, less successful startups didn’t disappear; they brought their knowledge into new ventures, speeding up progress across the industry.
And while AI grabs headlines, robotics isn’t riding its coattails alone. As Fady Saad of Cybernetix Ventures points out, robots need to understand and interact with the physical world—not just the digital one. That requires more than large language models; it requires years of hands-on data and training.
Where investors are looking
Manufacturing, warehousing, and construction remain hot spots for robotics adoption. But investors like Winterroth, Saad, and Kira Noodleman of Bee Partners are also excited about healthcare and eldercare robots. With labor shortages and aging populations straining existing systems, the demand for automation in these areas is only growing.
On the flip side, humanoid robots and consumer robotics aren’t drawing the same enthusiasm. Outside of iRobot’s Roomba, consumer-focused companies have struggled to find staying power. As Saad bluntly noted, “Even non-humanoid consumer robots have had a hard time capturing excitement.”
The road ahead
The industry isn’t without challenges. Building reliable robots that integrate seamlessly into human environments is complex, and we’re still years away from mainstream humanoids. But the overall direction is clear: robotics has matured into a sector with proven demand, viable technology, and growing investor appetite.
For Winterroth, this moment feels like validation. Ten years ago, he says, people questioned whether robotics could ever scale commercially. Today, there are enough success stories to prove that a thriving marketplace is not only possible—it’s here.
And while AI may be the buzzword of the decade, robotics is carving out its own golden age—one built on years of trial, error, and steady progress.
