All posts by Frank Tobe

Instead of worrying so much about robots taking away jobs, maybe we should worry more about wages being too low for robots to even get a chance. Seasonal labor for harvesting agricultural products, particularly fruits and vegetables, is dependent on human labor from a diminishing universe of willing workers.

Robots that can supplement or replace human workers in the harvesting process are being developed and tested in startups and academia, but almost all are not yet ready for prime time.

In a NY Times article written by Neil Irwin entitled Rethinking Low Productivity, productivity growth has been on a downward path since the Financial Crisis. Irwin, who writes about economic trends, asks whether the downward trend is the cause of low growth, or the result, a troubling question in the dynamics of the agriculture industry.

“Inventors and business innovators are always developing better ways to do things, but it takes a labor shortage and high wages to coax firms to deploy the investment it takes to actually put those innovations into widespread use.”

Those two phenomena are happening today in the U.S. agricultural industry. Labor rates are rising while willing laborers are diminishing — yet farmers are not yet investing in robotics. In fact, they are accommodating to the labor crisis by planting less and changing the crops they grow to be less labor intensive.

J.W. Mason, the author of a paper by the Roosevelt Institute cited as the basis for the thesis of Irwin’s article, says:

“If the labor market tightens and wages rise, that will be the impetus to get companies to consider more big-ticket innovations that generate productivity growth so that we don’t perpetuate the present conundrum in which both arguments cannot be true:

“On Mondays and Wednesdays, economists argue that wages are low because robots are taking people’s jobs.

On Tuesdays and Thursdays, it’s that we can’t have wages rise because productivity growth is low.”

This situation cannot continue without radical changes else we will become buyers of foreign fruits and vegetables paying prices set by foreign providers and dependent on them for availability and quality.

A number of factors are causing a reset in the ag industry in addition to the declining availability of farm workers: the challenges and complexities of employing and retaining farm labor; the rising cost of farm workers; changing farmlands; climate change; the growth of indoor farming; and the broader automation of the agriculture industry. All are propelling farmers to make changes in how they farm (or change downward the product mix they farm (which is often a path toward failure)). Market challenges for the sector include unclear value propositions, limited awareness of robotic systems among growers, insufficient robotic solutions, the difficulty of matching human-like dexterity with machines, fragmented technology development, and weak support.

Tractica, in their report on agricultural robotics, forecast an optimistic resolution to this temporary conundrum in the very near term and that that shipments of agricultural robots will increase significantly in the years ahead, rising from 32,000 units in 2016 to 594,000 units annually by 2024, by which time the market is expected to reach $74 billion in annual revenue. Certainly the time is ripe and, like Mason said, “Both arguments can’t be true.”

Auris Surgical Robotics, the Silicon Valley startup headed by Frederic Moll who previously co-founded Hansen Medical and Intuitive Surgical, raised $280 million in a Series D round led by Coatue Management and including earlier investors Mithril Capital Management, Lux Capital, Highland Capital and 24 others.

An Auris spokesman said that the company has raised a total of $530 million and is developing targeted, minimally invasive therapies that treat only the diseased cells in order to prevent the progression of a patient’s illness. Lung cancer is the first disease they are targeting.

There are 1 billion smokers worldwide creating an epidemic of 6 million deaths per year. More patients die every year from lung cancer than from prostate, breast and colon cancer combined. 

The reason lung cancer is so deadly is that the diagnostic and treatment processes are ineffective. The majority of lung cancer patients are diagnosed in late stage, when the cancer has already spread beyond its primary location. With our technology, physicians will be able to access early stage lung cancer without incisions, allowing accurate diagnosis and targeted treatment.

July 2017 was a big month for robotics-related company funding. Four raised $588 million and 19 others raised $370.6 million for a monthly total of $958.6 million. Acquisitions also continued to be significant with ST Engineering acquiring Aethon for $36 million, iRobot buying its European distributor for $141 million, and SoftBank purchasing 5% of iRobot shares for around $120 million.

Fundings

1. Plenty, a San Francisco vertical farm startup, raised $200 million in a Series B round led by SoftBank and included Bezos Expeditions, Data Collective, DCM Ventures, Finistere Ventures, Innovation Endeavors and Louis Bacon. Plenty plans to use the funds to expand to Japan and add strawberries and cucumbers to the leafy greens they already produce. Plenty makes an internet-connected system which delivers specific types of light, air composition, humidity and nutrition, depending on which crop is being grown, and is designing and adding robotics and automation as it can, particularly with their recent acquisition of Bright Agrotech (see below). Plenty says it can yield up to 350 times more produce in a given area than conventional farms — with 1 percent of the water.
   

   Sanjeev Krishnan of S2G Ventures said: “This investment shows the potential of the sector. Indoor agriculture is a real toolkit for the produce industry. There is no winner takes all potential here. I could even see some traditional, outdoor growers do indoor ag as a way to manage some of the fundamental issues of the produce industry: agronomy, logistics costs, shrinkage, freshness, seasonality and manage inventory cycles better. There are many different models that could work and we are excited about the platforms being built in the market.”

2. Nauto, a Silicon Valley self-driving device and AI startup, raised $159 million in a Series B funding round led by SoftBank and Greylock Partners and also included previous investors BMW iVentures, General Motors Ventures, Toyota AI Ventures, Allianz Group, Playground Global and Draper Nexus.
   

   SoftBank Group Corp. Chairman and CEO Masayoshi Son said, “While building an increasingly intelligent telematics business, Nauto is also generating a highly valuable dataset for autonomous driving, at massive scale. This data will help accelerate the development and adoption of safe, effective self-driving technology.”

3. Desktop Metal, the MIT spin-off and Massachusetts-based 3D metal printing technology startup, raised another $115 million in a Series D round which included New Enterprise Associates, GV (Google Ventures), GE Ventures, Future Fund and Techtronic Industries which owns Hoover U.S. and Dirt Devil.
   

   According to CEO Ric Fulop, “You don’t need tooling. You can make short runs of production with basically no tooling costs. You can change your design and iterate very fast. You can make shapes you couldn’t make any other way, so now you can lightweight a part and work with alloys that are very, very hard, with very extreme properties. One of the benefits for this technology for robotics is that you’re able to do lots of turns. Unless you’re iRobot with the Roomba, you’re making a lot of one-off changes to your product.”

4. Brain Corp, a San Diego AI company developing self-driving technology, got $114 million in a Series C funding round led by the SoftBank Vision Fund. Qualcomm Ventures was the only other investor. The funds will be used to develop technology that enables robots to navigate in complex physical spaces. Last October, Brain Corp. rolled out its first commercial product —a self-driving commercial floor scrubber for use in grocery stores and big box retailers.
5. Beijing Geekplus Technology (Geek+), a Chinese startup developing a goods-to-man warehousing system of robots and software very similar to Kiva System’s products, raised $60 million in a B round led by Warburg Pincus and joined by existing shareholders and Volcanics Venture. The company claims to have delivered the largest numbers of logistics robots among its peers in China, delivering nearly 1,000 units of robots in warehouses for over 20 customers that include Tmall, VIPShop and Suning.
   

   Yong Zheng, Founder and CEO of Geek+, said, “This round of financing will help us upgrade our business in three aspects. Firstly, we will accelerate the upgrading of our logistics robotics products and expand product offerings to cover more applications.” “Secondly, we will accelerate our geographical expansion and industry coverage to provide our one-stop intelligent logistics system and operation solutions to more customers. Thirdly, we will start exploring overseas markets through multiple channels.”

6. Vicarious, a Union City, California-based artificial intelligence company using computational neuroscience to build better machine learning models that help robots quickly address a wide variety of tasks, raised $50 million funding led by Khosla Ventures.
7. Momenta.ai, a Beijing autonomous driving startup that is developing digital maps, driving decision solutions and machine vision technology to detect traffic signs, pedestrians and track other cars, raised $46 million in a Series B funding round led by NIO Capital. Sequoia Capital China and Hillhouse Capital along with Daimler AG, Shunwei Capital, Sinovation Ventures and Unity Ventures also participated.
8. Autotalk, an Israeli chip maker of vehicle to vehicle communications, raised $40 million from Toyota, Sumitomo Mitsui Banking and other investors. The funding will allow Autotalks to prepare and expand its operations for the upcoming start of mass productions as well as continue to develop communication solutions for both connected and autonomous cars.
9. Flashhold (also named Shanghai Express Warehouse Intelligent Technology and Quicktron) raised $29 million in a Series B round led by Alibaba Group's Cainiao Network and SB China Venture Capital (SBCVC). Flashhold is a Shanghai-based logistic robotics company with robotic products, shelving and software very similar to Amazon's Kiva Systems.
10. Slamtec,  a Chinese company developing a solid state LiDAR laser sensor for robots in auto localization and navigation, raised $22 million from Chinese Academy of Sciences Holdings, ChinaEquity Group Inc. and Shenzhen Guozhong Venture Capital Management Co.
11. 6 River Systems, the Boston, MA startup providing alternative fulfillment solutions for e-commerce distribution centers, raised $15 million in a round led by Norwest Venture Partners with participation from  Eclipse Ventures and other existing investors.
12. Prospera, an Israeli ag startup, raised $15 million in a Series B round for its end-to-end internet of things platform for indoor and outdoor farms. The round was led Qualcomm Ventures  and fellow telecom heavyweight Cisco. Propsera uses computer vision, machine learning, and data science to detect and identify diseases, nutrient deficiencies, and other types of crop stress on farms with the hope of improving crop yields and saving farmer costs.
    

    “Receiving funding from these major tech companies is a clear signal that tech industry heavy-hitters understand that agriculture is ripe for digitalization. It means that such companies, which are already involved in digitizing other traditional industries, see a significant opportunity in agtech,” said Prospera CEO Daniel Koppel.

13. Embark, a Belmont, California-based self-driving trucking startup, raised $15 million in Series A funding led by Data Collective and was joined by YC Continuity, Maven Ventures and SV Angel. Embark has teamed up with Peterbilt and plans to hire for their engineering team and add more trucks to expand their test fleet across the U.S.
14. Xometry, a Maryland startup with an Uber-like system for parts manufacture, raised $15 million in funding led by BMW Groups’ VC arm and GE.
15. Intuition Robotics, an Israeli startup developing social companion technologies for seniors, raised $14 million in a Series A round led by Toyota Research Institute plus OurCrowd and iRobot as well as existing seed investors Maniv Mobility, Terra Venture Partners, Bloomberg Beta and private investors.
    

    Dr. Gill Pratt, CEO of Toyota Research Institute said: “We are impressed with Intuition Robotics’ thought leadership of a multi-disciplinary approach towards a compelling product offering for older adults including: Human-Robot-Interaction, cloud robotics, machine learning, and design. Specifically, we believe Intuition Robotics’ technology, in the field of cognitive computing, has strong potential to positively impact the world’s aging population with a proactive, truly autonomous agent that’s deployed in their social robot, ElliQ.”

16. SkySafe, a San Diego, California-based radio-wave anti-drone device manufacturer, raised $11.5 million in Series A funding, according to TechCrunch. Andreessen Horowitz led the round. SkySafe recently secured DoD contracts to provide counter-drone tech for Navy Seals.
17. Kuaile Zhihui, a Beijing educational robot startup, has raised around $10 million in a Series A funding round led by Qiming Venture Partners and included GGV Capital and China Capital.
18. Atlas Dynamics, a Latvian UAS startup, raised $8 million from unnamed institutional and individual investors. Funds will be used to advance the development of its Visual Line of Sight (VLOS) and Beyond Visual Line of Sight (BVLOS) drone-based data solutions, and to build its presence in key markets, including North America.
19. Reach Robotics, a gaming robots developer, raised $7.5 million in Series A funding led by Korea Investment Partners and IGlobe. Reach has produced and sold an initial run of 500 of its four-legged, crab-like, MekaMon bots. MekaMon fits into an emerging category of smartphone-enabled augmented reality toys like Anki.
20. UVeye, a New York-based startup that develops automatic vehicle inspection systems, has raised $4.5 million in a seed round led by Ahaka Capital. Israeli angel investors group SeedIL Investment Club also participated. Funds will be used to launch its products and expand to international markets, including China.
21. Miso Robotics, the Pasadena-based developer of a burger-flipping robot, raised $3.1 million in a funding round led by Acacia Research. Interestingly, Acacia is an agency that licenses patents and also enforces patented technologies.
22. Metamoto, the Redwood City autonomous driving simulation startup, raised $2 million in seed funding led by Motus Ventures and UL, a strategic investor.
23. Fastbrick, an Australian brick-laying startup, raised $2 million from Caterpillar with an option to invest a further $8 million subject to shareholder approval. Both companies signed an agreement to collaborate on the development, manufacture, selling and servicing of Fastbrick’s technology mounted on Caterpillar equipment.

Acquisitions

1. Robopolis SAS, the France-based distributor of iRobot products in Europe, is being acquired by iRobot for $141 million. Last year iRobot, in a similar move to bring their distribution network inhouse, acquired Demand Corp, their distributor for Japan.
2. Bright Agrotech, a Wyoming provider of vertical farming products, technology and systems, was acquired by Plenty, a vertical farm startup in San Francisco. No financial terms were disclosed. Bright has partnered with small farmers to start and grow indoor farms, providing high-tech growing systems and controls, workflow design, education and software.
3. Singapore Technologies Engineering Ltd (ST Engineering) has acquired robotics firm Aethon Inc through Vision Technologies Land Systems, Inc. (VTLS), and its wholly-owned subsidiary, VT Robotics, Inc for $36 million. This acquisition will be carried out by way of a merger with VT Robotics, a special purpose vehicle newly incorporated for the proposed transaction. The merger will see Aethon as the surviving entity that will operate as a subsidiary of VTLS, and will be part of the Group’s Land Systems sector.
4. On the Move Systems, a Canadian penny stock trucking systems provider, is merging with California-based RAD (Robotic Assistance Devices), an integrator of mobile robots for security applications. The merger involves RAD receiving 3.5 million shares of OMVS (around $250k).

IPOs and stock transactions

• iRobot, the 27-year-old Massachusetts-based maker of the Roomba, has seen its stock soar from news of a purchase of an undisclosed amount of iRobot stock by SoftBank (or the SoftBank Vision Fund). The purchase is reported to be over $100 million and less than $120 million (5% of the market value).

Failures

• Pearl Automation

China has recently announced their long-term goal to become #1 in A.I. by 2030. They plan to grow their A.I. industry to over $22 billion by 2020, $59 billion by 2025 and $150 billion by 2030. They did this same type of long-term strategic planning for robotics – to make it an in-country industry and to transform the country from a low-cost labor source to a high-tech manufacturing resource, and it’s working.

China's Artificial Intelligence Manifesto

With this major strategic long-term push into A.I., China is looking to rival U.S. market leaders such as Alphabet/Google, Apple, Amazon, IBM and Microsoft. China is keen not to be left behind in a technology that is increasingly pivotal — from online commerce to self-driving vehicles, energy, and consumer products. China aims to catch up by solving issues including a lack of high-end computer chips, software that writes software, and trained personnel. Beijing will play a big role in policy support and regulation as well as providing and funding research, incentives and tax credits.

The local and central government are supporting this AI effort,” said Rui Yong, chief technology officer at PC maker Lenovo Group. “They see this trend coming and they want to invest more.

Many cited the defeat of the world's top Go players from China and South Korea by the Google-owned A.I. company DeepMind and their AlphaGo game-playing software as the event that caused China's State Council to enact and launch its A.I. plan which it announced on July 20th. The NY Times called it “a sort of Sputnik moment for China.”

Included in the announcement:

China will be investing heavily to ensure its companies, government and military leap to the front of the pack in a technology many think will one day form the basis of computing.

The plan covers almost every field: from using the technology  for voice recognition to dispatching robots for deep-sea and Arctic exploration, as well as using AI in military security. The Council said the country must “firmly grasp this new stage of AI development.”

China said it plans to build “special-force” AI robots for ocean and Arctic exploration, use the technology for gathering evidence and reading court documents, and also use machines for “emotional interaction functions.”

In the final stage, by 2030, China will “become the world’s premier artificial intelligence innovation center,” which in turn will “foster a new national leadership and establish the key fundamentals for an economic great power.”

Chinese Investments in A.I.

The DoD regularly warns that Chinese money has been flowing into American A.I. companies — some of the same companies it says are likely to help the United States military develop future weapons systems. The NY Times cites the following example:

When the United States Air Force wanted help making military robots more perceptive, it turned to a Boston-based artificial intelligence start-up called Neurala. But when Neurala needed money, it got little response from the American military.

So Neurala turned to China, landing an undisclosed sum from an investment firm backed by a state-run Chinese company.

Chinese firms have become significant investors in American start-ups working on cutting-edge technologies with potential military applications. The start-ups include companies that make rocket engines for spacecraft, sensors for autonomous navy ships, and printers that make flexible screens that could be used in fighter-plane cockpits. Many of the Chinese firms are owned by state-owned companies or have connections to Chinese leaders.

Chinese venture firms have offices in Silicon Valley, Boston and other areas where A.I. startups are happening. Many Chinese companies — such as Baidu — have American-based research centers to take advantage of local talent. 

The Committee on Foreign Investment in the United States (CFIUS), which reviews U.S. acquisitions by foreign entities for national security risks, appears to be blind to all of this.

China's Robot Manifesto Has Been Quite Successful

Chinese President Xi Jinping initiated “a robot revolution” and launched the “Made in China 2025” program. More than 1,000 firms and a new robotics association, CRIA (Chinese Robotics Industry Alliance) have emerged (or begun to transition) into robotics to take advantage of the program. By contrast, the sector was virtually non-existent a decade ago.

Under “Made in China 2025,” and the five-year robot plan launched last April, Beijing is focusing on automating key sectors of the economy including car manufacturing, electronics, home appliances, logistics, and food production. At the same time, the government wants to increase the share of in-country-produced robots to more than 50% by 2020; up from 31% last year and to be able to make 150,000 industrial robots in 2020; 260,000 in 2025; and 400,000 by 2030. China's stated goal in both their 5-year plan and Made in China 2025 program is to overtake Germany, Japan, and the United States in terms of manufacturing sophistication by 2049, the 100th anniversary of the founding of the People’s Republic of China. To make that happen, the government needs Chinese manufacturers to adopt robots by the millions. It also wants Chinese companies to start producing more of those robots and has encouraged strategic acquisitions.

Four of the top 15 acquisitions in 2016 were of robotic-related companies by Chinese acquirers:

1. Midea, a Chinese consumer products manufacturer, acquired KUKA, one of the Big 4 global robot manufacturers
2. The Kion Group, a predominately Chinese-funded warehousing systems and equipment conglomerate, acquired Dematic, a large European AGV and material handling systems company
3. KraussMaffei, a big German industrial robots integrator, was acquired by ChemChina
4. Paslin, a US-based industrial robot integrator, was acquired by Zhejiang Wanfeng Technology, a Chinese industrial robot integrator

The Robot Report wrote an extensive review of robot growth in China and recapped 500 of them by type and sub-category. For fundings and acquisitions in 2017, read the monthly posts on the subject.

Recent events demonstrate the growing presence of indoor mobile robots: (1) Savioke’s hotel butler robot won the 2017 IERA inventors award; (2) Knightscope’s security robot mistook a reflecting pond for a solid floor and dove in face-first to the delight of Twitterdom and the media; and (3) the sale of robotic hospital delivery provider Aethon to a Singaporean conglomerate.

Are we beginning to enter an era of multi-functional robots? Certainly that is the vision of each of the vendors listed below. They see their robots greet, assist and run errands during business hours and then, after hours, prowl and tally inventory and fixed assets, and all the while – 24/7 – check for anomalies and things that are suspicious. SuperRobot? Or one of the many new mobile service robots that offer each of these services as separate tasks? For example, Savioke, the hotel butler robot, is now using their Relay robots with FedEx in the warehousing and logistics sector.

The indoor robot marketplace

Travis Deyle, CEO of Silicon Valley startup Cobalt Robotics which is developing indoor robots for security purposes, in an article in IEEE Spectrum, posited that commercial spaces are the next big marketplace for robotics and that there’s a massive, untapped market in each of the commercial spaces shown in his chart below:

“Commercial spaces could serve as a great stepping stone on the path toward general-purpose home robots by driving scale, volume, and capabilities. So… while billions are being spent on R&D for autonomous vehicles, indoor robots for commercial and public spaces reap the technology and cost benefits on sensors, computing, machine learning, and open-source software.”

Although the chart above focuses on the many applications within the commercial space, there is also much activity in various forms of indoor material handling using mobile robots in warehouses and distribution centers. The list of companies in that marketplace is quite large and will be detailed in a future article.

Hospital mobile robot firm sells to Singaporean conglomerate

ST Engineering acquired Pittsburgh, PA-based hospital robotics firm Aethon for $36 million. Aethon provides intralogistics in hospital environments by delivering goods and supplies using its TUG autonomous mobile robots. ST Engineering's strategic reasoning for the acquisition can be understood by this statement about the purchase:

“We evaluated the autonomous mobile robotics market thoroughly. Our evaluation led us to conclude that Aethon was the best company in this space having the right technology along with proven success in the commercialization and installation of autonomous mobile robots,” said Khee Loon Foo, General Manager, Kinetics Advanced Robotics of ST Kinetics.

Hotel robot wins 2017 IERA Inventors Award

The International Federation of Robotics (IFR) and the IEEE Robotics and Automation Society (IEEE/RAS) jointly sponsor an annual IERA (Innovation and Entrepreneurship in Robotics and Automation) Award which this year was presented to the Relay butler robot made by Savioke, a Silicon Valley startup.

Savioke's Relay robot makes deliveries all on its own in hotels, hospitals or logistics centers. Thanks to artificial intelligence and sensor technology, the robot can move safely through public spaces and navigate around people and obstacles dynamically.

The robots, which have already completed over 100,000 deliveries, can be seen in selected hotels in California and New York, Asia and the Middle East.

Indoor Robot Companies

Listed below are a few of the companies in the emerging mobile robot indoor commercial marketplaces described in Deyle's chart above. The list is not comprehensive but intended to give you an overview of who those new companies are, how far along they are, and how global they are.

Indoor Security Robots:

Recent research reports covering the security robots marketplace forecast that the market will reach $2.4 billion by 2022 at a CAGR of 9% from now til then. These forecasts include indoor and outdoor robots. 

• Knightscope is a Silicon Valley security robot startup with robots in shopping malls, exhibition halls, parking lots and office complexes. It was Knightscope's robot that took the face dive in the Washington, DC pond. [Graphic of Knightscope robot from Twitter.]
• Cobalt Robotics, also a Silicon Valley security robotics startup, but, as described by co-founder Travis Deyle, “Security is just one entrée to the whole emerging world of indoor robotics.”
• Gamma Two Robotics, a Colorado patrol robot maker, whose new Ramsee mobile robots have sensors for heat, toxic gas, motion detection and acoustic listening.
• NxT Robotics is a San Diego mobile robot startup offering both an indoor (Iris) and outdoor (Scorpion) security patrol solution.
• SMP Robotics is a San Francisco maker of mobile security robots for outdoor and indoor facilities.
• Anbot (Hunan Wanwei Intelligent Robot Technology Co.) is a Chinese security robot with a robot very similar looking to Knightscope's. It can be seen prowling airport and museum public spaces in China.
• Robot Security Systems is a Netherlands-based startup indoor mobile security robot provider.
• China Security & Surveillance Technology also offers both indoor and outdoor security mobile robots.

Indoor Guides, Assistants, Greeters, Food Handlers and Gofor Robots:

This list could be much larger – particularly the gofor robots in the material handling field – but has been limited to those startups delivering product or with working prototypes focused on one or all of the commercial indoor market sectors. 

• MetraLabs is a German provider of fully autonomous mobile inventory, public space guide and retail robots for stores, malls and museums.
• PAL Robotics is a Spanish maker of humanoid robots used as guides, entertainers, information providers and presenters – in multiple languages.
• Pangolin Robot is a Chinese maker of restaurant server/waiter/busing robots and which also has a line of greeting and delivery robots.
• Simbe Robotics is a San Francisco provider of a retail space inventory robot auditing shelves for out-of-stock items, low stock items, misplaced items, and pricing errors. Simbe's Tally robot can perform during normal store hours alongside shoppers and employees or autonomously after hours.
• Bossa Nova Robotics is a Pittsburgh developer of a store robot that scans products on the shelves, makes store maps and helps employees keep track of where items are located.
• BlueBotics is a Swiss provider of mobile robots, robotic platforms and products for mobile guides, marketing assistants and industrial cleaning.
• Pepper, the mobile emotion-detecting robot jointly produced by Foxconn, Alibaba and SoftBank, is serving as the first point of contact in coffee stores, banks, corporate offices and other public spaces.
• Yujin Robot is a Korean consumer products maker with a line of hotel and restaurant delivery robots.
• Fellow Robots is a Silicon Valley developer of the NAVii robot which is used as a greeter but also maps and performs inventory scans. 

Singapore Technologies Engineering Ltd (ST Engineering) has acquired Pittsburgh, PA-based robotics firm Aethon Inc through Vision Technologies Land Systems, Inc. (VTLS), and its wholly-owned subsidiary, VT Robotics, Inc, for $36 million.

The acquisition will be carried out by way of a merger with VT Robotics, a special newly incorporated entity established for the transaction. The merger will see Aethon as the surviving entity that will operate as a subsidiary of VTLS, and will be part of the the ST Group’s Land Systems sector. Aethon’s leadership team and employees will remain in place and the company will continue to operate out of its Pittsburgh, PA location.

ST Engineering, S63 on the Singapore Stock Exchange, is a Singapore-based integrated defense and engineering group focused in aerospace, electronics, and land, sea and air unmanned systems for the battlefield. It employs over 21,000 people and has annual revenues of around $5 billion.

“We evaluated the autonomous mobile robotics market thoroughly. Our evaluation led us to conclude that Aethon was the best company in this space having the right technology along with proven success in the commercialization and installation of autonomous mobile robots. We look forward to working with the Pittsburgh, PA team to grow the company,” says Khee Loon Foo, General Manager, Kinetics Advanced Robotics of ST Kinetics.

Aethon provides intralogistics in manufacturing and hospital environments by delivering goods and supplies using its TUG autonomous mobile robots. TUGs are self-driving autonomous robots capable of hauling or towing up to 1,400 lbs as it dynamically and safely navigates around people and the corridors of client facilities.

“This acquisition is a terrific event for our company, employees and our customers since it provides Aethon with the resources and corporate backing to grow and develop new innovative robotic technology and more aggressively pursue new markets. We will now be able to expand our development capabilities to enhance our current technology and bring exciting logistics solutions to new vertical and global markets,” says Aldo Zini, CEO of Aethon.

After much uproar, media attention, and political pressure, Pres. Trump intervened and enabled all the teams headed to Washington, DC for the F.I.R.S.T Global Robotics Championship, whose visas had been held up or denied, to get their visas. Some visas were received as late as two days before the event. Although the Afghan team got all the press, the team from Gambia was also denied when they first applied.

The three-day event which started Sunday evening in Washington, DC with opening ceremonies, has teams from 157 countries (including the Afghanistan and Gambia teams) — and some multinational teams representing continents. FIRST has organized competitions for many years but this is the first year it is hosting an international competition.

FIRST Global founder Dean Kamen, the inventor who created the Segway, said: “The competition’s objective is not just to teach children to build robots and explore careers in science, technology, engineering and math; it drives home the lesson of the importance of cooperation — across languages, cultures and borders. FIRST Global is getting them [teams from around the world] at a young age to learn how to communicate with each other, cooperate with each other and recognize that we’re all going to succeed together or we’re all going down together.” 

Ivanka Trump met with the Afghan girls team and also put in an appearance at the competition. She Tweeted: “It is a game everyone can play and where everyone can turn pro!”

The Washington Post described another set of problems that got resolved in an unusual way regarding the team from Iran:

Because of sanctions, FIRST Global was unable to ship a robotics kit to Iran, where a group of teenagers awaited the parts to build a robot. That might have spelled the end of the team’s shot of going to the world championships. But the organization introduced the Iranian team to a group of teenage robotics enthusiasts at George C. Marshall High School in Falls Church, Va., calling themselves Team Gryphon. The team in Iran sketched out blueprints on the computer and sent the designs to their counterparts across the ocean and then corresponded over Skype.

Sunday, the team flew the Iranian flag at their station next to the flag of Team Gryphon — a black flag with a purple silhouette of the gryphon — as a sign of their unlikely partnership.

For Mohammadreza Karami, the team’s mentor, it was an inspiring example of cooperation. “It’s possible to solve all of the world’s problems if we put aside our politics and focus on peace,” Karami said.

Kirsten Springer, a 16-year-old rising junior at Marshall High, said she didn’t want the Iranian team to be locked out of the competition just because of the sanctions. “Everybody should be able to compete … and to learn and to use that experience for other aspects of their life,” she said.

Now that all the teams are present and the competition has begun, we wish them all the best, hope they have a lot of fun, particularly hope they meet and befriend a lot of fellow robot enthusiasts, and thank them all for participating and their team mentors and supporters for helping make this all happen.

The Association for Advancing Automation (A3) cites that between 2010 and 2016, 136,748 robots were shipped to the US —the most in any seven-year period in the US robotics industry. At the same time, US manufacturing employment increased by 894,000 and the unemployment rate fell from 9.8% to 4.7%.

Yet manufacturers, robotics associations, ethicists and media pundits are still fighting the robotics and jobs issue. Brett Brune, Editor in Chief of Smart Manufacturing magazine, argues that “the hand-wringing around robotics and jobs in the US really needs to stop.” 

Manufacturers around the world, including in China, are busy figuring out how quickly to acquire robots. In Mexico, automation is thriving. So much so that the country is now the sixth-biggest auto producer globally. At the same time, the number of manufacturing workers is starting to swell.

A record-high 5.15 million Mexicans worked in manufacturing as of May, nearly a quarter of all workers registered with the country’s social security institute. Around 202,000 Mexicans joined the ranks of manufacturing workers during the first five months of this year alone.

California, which abuts Mexico, has America's largest Hispanic population (14.4 million in 2011), and has had a continuous supply of migrant farm workers since before statehood, has been an agricultural mainstay in the US for close to 100 years and currently produces about 60% of the nation's fresh produce. But as the state's minimum wage approaches $15 and competition from the growing Mexican manufacturing economy mounts, farm managers are having to cope with a workforce that has dropped and immigration policies that threaten to depress the labor supply further.

Since the late 1990s, the number of agricultural workers who move around the US working seasonal farming jobs fell by 60%. According to a study done by the Institute for Research on Labor and Employment (UC Berkeley), half of that labor transformation appears to be due to changes in the demographic makeup of the workforce while government and institutional changes in the market impacted the remaining 50%.

“This reduction in the number of migrant farmworkers increases the risk that fruits and vegetables will not be harvested before they spoil. To avoid this problem, farmers will switch crops, automate planting and harvesting, or take other actions to reduce the need for seasonal agricultural workers. Only a major change in our immigration and guest worker policies is likely to increase migration within the country and postpone automation.”

Interestingly, the trend line for documented workers, although going steadily down, outnumbers undocumented workers as governmental and economic changes in the US and Mexico make immigration less attractive plus demographic changes make farm workers less willing to migrate.

The case for robotics in the ag industry has never been stronger as agricultural migration rates within the United States plummet. Recent research reports suggest that growth in ag technology will be exponential but not necessarily in across-the-board robotics; rather, it will first attack three areas: (1) converting farms to become connected digital systems through the use of precision ag methods, (2) then, with sensor-laden ground-based and airborne drones, planes and satellites gathering and accumulating data, analyzing that data to produce actionable prescriptions, and (3) provide equipment that can vary its procedures (seeding, thinning, weeding, spraying, etc.) based on the actionable prescriptions from #2, and automate post-harvest processing (sorting, inspecting, handling, packaging, boxing, etc.). 

Resources and references

• Story idea from Robotiq weekly What's New blog
• Article: Where did all the migrant farm workers go?
• Article: With farm labor getting scarcer, big U.S. farms are preparing to turn to robots
• Article: What’s slowing the use of robots in the ag industry?
• Research report: Global agricultural robots market, May 2017, 70 pages, TechNavio
• Research report: Agriculture robots market, June 2017, TMR Research
• Research report: Agricultural Robots, December 2016, 225 pages, Tractica

Read more

SoftBank’s Pepper humanoid robot operation (a joint venture with Foxconn, Alibaba and SoftBank) has incurred a big $274 million loss while Asia more than doubled the amount of funding for tech startups thus far in 2017. No one ever said VC funding was for the faint of heart.

The Ups

According to PwC and CB Insights, venture capital investments in Asia in the first six months of 2017 totaled $28.8 billion. VC investments in North America for the same period totaled $18.4 billion.

CB Insights reports that 45% of all dollars invested in tech in 2017 went to Asian firms. 

Largest deals in Asia so far this year included Didi Chuxing raising $5.5 billion, One97 Communications ($1.4 billion), GO-JEK ($1.2 billion), Bytedance ($1 billion) and Ele.me ($1 billion).

Largest deals in North America in the quarter included San Francisco-based Lyft – which raised $600 million, Outcome Health ($500 million), Group Nine Media ($485 million), Houzz ($400 million), and Guardant Health ($360 million).

The number of deals around the world, as shown in the chart above, remains heavily in the West. Almost every day the news reports another fund being set up to invest in one area of tech or another. For example, Toyota Motor Corp today announced a $100 million fund (Toyota AI Ventures) for AI and robotics startups and have already made some initial investments. The first three are for a maker of cameras that monitor drivers and roads, a creator of autonomous car-mapping algorithms, and a developer of robotic companions for the elderly.

The Downs

Nikkei Asian Review reports on SoftBank Robotics’ $274 million loss which they attribute to the Pepper humanoid robot joint venture with Alibaba and Foxconn. The subsidiary was established in 2014 and began consumer sales of Pepper in June 2015 and business sales that October.

“Although the company does not release earnings, it recorded sales of 2.2 billion yen and a net loss of 11.7 billion yen in fiscal 2015, according to Tokyo Shoko Research. That is markedly worse than the 2.3 billion yen net loss from fiscal 2014. 'Pepper is unprofitable because of its relatively low price for a humanoid robot, costing just 198,000 yen ($1,750), which cannot cover development costs.'”

A SoftBank PR statement said that they will increase corporate sales and improve earnings through related businesses such as apps and content and that sales are good.

Two reputable research resources are reporting that the robotics industry is growing more rapidly than expected. BCG (Boston Consulting Group) is conservatively projecting that the market will reach $87 billion by 2025; Tractica, incorporating the robotic and AI elements of the emerging self-driving industry, is forecasting the market will reach $237 billion by 2022.

Both research firms acknowledge that yesterday’s robots — which were blind, big, dangerous and difficult to program and maintain — are being replaced and supplemented with newer, more capable ones. Today's new, and future robots, will have voice and language recognition, access to super-fast communications, data and libraries of algorithms, learning capability, mobility, portability and dexterity. These new precision robots can sort and fill prescriptions, pick and pack warehouse orders, sort, inspect, process and handle fruits and vegetables, plus a myriad of other industrial and non-industrial tasks, most faster than humans, yet all the while working safely along side them.

Boston Consulting Group (BCG)

Gaining Robotic Advantage, June 2017, 13 pages, free

BCG suggests that business executives be aware of ways robots are changing the global business landscape and think and act now. They see robotics-fueled changes coming in retail, logistics, transportation, healthcare, food processing, mining and agriculture.

BCG cites the following drivers:

• Private investment in the robotic space has continued to amaze with exponential year-over-year funding curves and sensational billion dollar acquisitions.
• Prices continue to fall on robots, sensors, CPUs and communications while capabilities continue to increase.
• Robot programming is being transformed by easier interfaces, GUIs and ROS.
• The prospect of a self-driving vehicles industry disrupting transportation is propelling a talent grab and strategic acquisitions by competing international players with deep pockets.
• 40% of robotic startups have been in the consumer sector and will soon augment humans in high-touch fields such as health and elder care.

 BCG also cites the following example of paying close attention to gain advantage:

“Amazon gained a first-mover advantage in 2012 when it bought Kiva Systems, which makes robots for warehouses. Once a Kiva customer, Amazon acquired the robot maker to improve the productivity and margins of its network of warehouses and fulfillment centers. The move helped Amazon maintain its low costs and expand its rapid delivery capabilities. It took five years for a Kiva alternative to hit the market. By then, Amazon had a jump on its rivals and had developed an experienced robotics team, giving the company a sustainable edge.”

Tractica

Robotics Market Forecast – June 2017, 26 pages, $4,200
Drones for Commercial Applications – June 2017, 196 pages, $4,200
AI for Automotive Applications – May 2017, 63 pages, $4,200
Consumer Robotics – May 2017, 130 pages, $4,200

The key story is that industrial robotics, the traditional pillar of the robotics market, dominated by Japanese and European robotics manufacturers, has given way to non-industrial robot categories like personal assistant robots, UAVs, and autonomous vehicles, with the epicenter shifting toward Silicon Valley, which is now becoming a hotbed for artificial intelligence (AI), a set of technologies that are, in turn, driving a lot of the most significant advancements in robotics. Consequently, Tractica forecasts that the global robotics market will grow rapidly between 2016 and 2022, with revenue from unit sales of industrial and non-industrial robots rising from $31 billion in 2016 to $237.3 billion by 2022.  The market intelligence firm anticipates that most of this growth will be driven by non-industrial robots.

Tractica is headquartered in Boulder and analyzes global market trends and applications for robotics and related automation technologies within consumer, enterprise, and industrial marketplaces and related industries.

General Research Reports

• Global autonomous mobile robots market, June 2017, 95 pages, TechNavio, $2,500
  TechNavio forecasts that the global autonomous mobile robots market will grow at a CAGR of more than 14% through 2021.
• Global underwater exploration robots, June 2017, 70 pages, TechNavio, $3,500
  TechNavio forecasts that the global underwater exploration robots market will grow at a CAGR of 13.92 % during the period 2017-2021.
• Household vacuum cleaners market, March 2017, 134 pages, Global Market Insights, $4,500
  Global Market Insights forecasts that household vacuum cleaners market size will surpass $17.5 billion by 2024 and global shipments are estimated to exceed 130 million units by 2024, albeit at a low 3.0% CAGR. Robotic vacuums show a slightly higher growth CAGR.
• Global unmanned surface vehicle market, June 2017, Value Market Research, $3,950
  Value Market Research analyzed drivers (security and mapping) versus restraints such as AUVs and ROVs and made their forecasts for the period 2017-2023.
• Innovations in Robotics, Sensor Platforms, Block Chain, and Artificial Intelligence for Homeland Security, May 2017, Frost & Sullivan, $6,950
  This Frost & Sullivan report covers recent developments such as co-bots for surveillance applications, airborne sensor platforms for border security, blockchain tech, AI as first responder, and tech for detecting nuclear threats.
• Top technologies in advanced manufacturing and automation, April 2017, Frost & Sullivan, $4,950
  This Frost & Sullivan report focuses on exoskeletons, metal and nano 3D printing, co-bots and agile robots – all of which are in the top 10 technologies covered.
• Mobile robotics market, December 2016, 110 pages, Zion Market Research, $4,199
  Global mobile robotics market will reach $18.8 billion by end of 2021, growing at a CAGR of slightly above 13.0% between 2017 and 2021.
• Unmanned surface vehicle (USV) market, May 2017, MarketsandMarkets, $5,650
  MarketsandMarkets forecasts the unmanned surface vehicle (USV) market to grow from $470.1 Million in 2017 to $938.5 Million by 2022, at a CAGR of 14.83%.

Agricultural Research Reports

• Global agricultural robots market, May 2017, 70 pages, TechNavio, $2,500
  Forecasts the global agricultural robots market will grow steadily at a CAGR of close to 18% through 2021.
• Agriculture robots market, June 2017, TMR Research, $3,716
  Robots are poised to replace agricultural hands. They can pluck fruits, sow and reap crops, and milk cows. They carry out the tasks much faster and with a great degree of accuracy. This coupled with mandates on higher minimum pay being levied in most countries, have spelt good news for the global market for agriculture robots.
• Agricultural Robots, December 2016, 225 pages, Tractica, $4,200
  Forecasts that shipments of agricultural robots will increase from 32,000 units in 2016 to 594,000 units annually in 2024 and that the market is expected to reach $74.1 billion in annual revenue by 2024. Report, done in conjunction with The Robot Report, profiles over 165 companies involved in developing robotics for the industry.

In the race to develop self-driving technology, Chinese Internet giant Baidu unveiled its 50+ partners in an open source development program, revised its timeline for introducing autonomous driving capabilities on open city roads, described the Project Apollo consortium and its goals, and declared Apollo to be the ‘Android of the autonomous driving industry’.

At a developer's conference last week in Beijing, Baidu described its plans and timetable for its self-driving car technology. It will start test-driving in restricted environments immediately, before gradually introducing fully autonomous driving capabilities on highways and open city roads by 2020. Baidu's goal is to get those vehicles on the roads in China, the world's biggest auto market, with the hope that the same technology, embedded in exported Chinese vehicles, can then conquer the United States. To do so, Baidu has compiled a list of cooperative partners, a consortium of 50+ public and private entities, and named it Apollo, after NASA's massive Apollo moon-landing program. 

Project Apollo

The program is making its autonomous car software open source in the same way that Google released its Android operating system for smartphones. By encouraging companies to build upon the system and share their results, it hopes to overtake rivals such as Google/Waymo, Tencent, Alibaba and others researching self-driving technology. 

MIT Technology Review provided a description of the open source Apollo project:

The Apollo platform consists of a core software stack, a number of cloud services, and self-driving vehicle hardware such as GPS, cameras, lidar, and radar.

The software currently available to outside developers is relatively simple: it can record the behavior of a car being driven by a person and then play that back in autonomous mode. This November, the company plans to release perception capabilities that will allow Apollo cars to identify objects in their vicinity. This will be followed by planning and localization capabilities, and a driver interface.

The cloud services being developed by Baidu include mapping services, a simulation platform, a security framework, and Baidu’s DuerOS voice-interface technology.

Members of the project include Chinese automakers Chery, Dongfeng Motor, Foton, Nio, Yiqi and FAW Group. Tier 1 members include Continental, Bosch, Intel, Nvidia, Microsoft and Velodyne. Other partners include Chinese universities, governmental agencies, Autonomous Stuff, TomTom, Grab and Ford. The full list of members can be seen here.

Quoting from Bloomberg News regarding the business aspect of Project Apollo:

China has set a goal for 10 to 20 percent of vehicles to be highly autonomous by 2025, and for 10 percent of cars to be fully self-driving in 2030. Didi Chuxing, the ride-sharing app that beat Uber in China, is working on its own product, as are several local automakers. It’s too early to tell which will ultimately succeed though Baidu’s partnership approach is sound, said Marie Sun, an analyst with Morningstar Investment Service.

“This type of technology needs cooperation between software and hardware from auto-manufacturers so it’s not just Baidu that can lead this,” she said. If Baidu spins off the car unit, “in the longer term, Baidu should maintain a major shareholder position so they can lead the growth of the business.”

Baidu and Apollo have a significant advantage over Google's Waymo: Baidu has a presence in the United States, whereas Alphabet has none in China because Google closed down its search site in 2010 rather than give in to China's internet censorship.

Strategic Issue

According to the Financial Times, “autonomous vehicles pose an existential threat [to global car manufacturers]. Instead of owning cars, consumers in the driverless age will simply summon a robotic transportation service to their door. One venture capitalist says auto executives have come to him saying they know they are “screwed”, but just want to know when it will happen.” 

This desperation has prompted a string of big acquisitions and joint ventures amongst competing providers including those in China. Citing just a few:

• Last year GM paid $1bn for Cruise, a self-driving car start-up.
• Uber paid $680m for Otto, an autonomous trucking company that was less than a year old.
• In March, Intel spent $15bn to buy Israel’s Mobileye, which makes self-driving sensors and software.
• Baidu acquired Raven Tech, an Amazon Echo competitor; 8i, an augmented reality hologram startup; Kitt, a conversational language engine; and XPerception, a vision systems developer.
• Tencent invested in mapping provider Here and acquired 5% of Tesla.
• Alibaba announced that it is partnering with Chinese Big 4 carmaker SAIC in their self-driving effort.

China Network

Baidu’s research team in Silicon Valley is pivotal to their goals. Baidu was one of the first of the Chinese companies to set up in Silicon Valley, initially to tap into SV's talent pool. Today it is the center of a “China network” of almost three dozen firms, through investments, acquisitions and partnerships. 

Baidu is rapidly moving forward from the SV center: 

• It formed a self-driving car sub-unit in April which now employs more than 100 researchers and engineers. 
• It partnered with chipmaker Nvidia.
• It acquired vision systems startup XPerception.
• It has begun testing its autonomous vehicles in China and California. 

Regarding XPerception, Gartner research analyst Michael Ramsey said in a CNBC interview:

“XPerception has expertise in processing and identifying images, an important part of the sensing for autonomous vehicles. The purchase may help push Baidu closer to the leaders, but it is just one piece.”

XPerception is just one of many Baidu puzzle pieces intended to bring talent and intellectual property to the Apollo project. It acquired Raven Tech and Kitt AI to gain conversational transaction processing. It acquired 8i, an augmented reality hologram startup, to add AR — which many expect to be crucial in future cars — to the project. And it suggested that the acquisition spree will continue as needed.

Bottom Line

China has set a goal for 10 to 20 percent of vehicles to be highly autonomous by 2025, and for 10 percent of cars to be fully self-driving in 2030 and Baidu wants to provide the technology to get those vehicles on the roads in China with the hope that the same technology, embedded in exported Chinese vehicles, can then conquer the United States. It seems well poised to do so.

China’s second-biggest e-commerce company, JD.com (Alibaba is first), is testing mobile robots to make deliveries to its customers, and imagining a future with fully unmanned logistics systems.

 Story idea and images courtesy of RoboticsToday.com.au.

On the last day of a two-week-long shopping bonanza that recorded sales of around $13 billion, some deliveries were made using mobile robots designed by JD. It’s the first time that the company has used delivery robots in the field. The bots delivered packages to multiple Beijing university campuses such as Tsinghua University and Renmin University. 

JD has been testing delivery robots since November last year. At that time, the cost of a single robot was almost $88,000.

They have been working on lowering the cost and increasing the capabilities since then. The white, four-wheeled UGVs can carry five packages at once and travel 13 miles on a charge. They can climb up a 25° incline and find the shortest route from warehouse to destination.

Once it reaches its destination, the robot sends a text message to notify the recipient of the delivery. Users can accept the delivery through face-recognition technology or by using a code.

The UGVs now cost $7,300 per robotic unit which JD figures can reduce delivery costs from less than $1 for a human delivery to about 20 cents for a robot delivery.

JD is also testing the world’s largest drone-delivery network, including flying drones carrying products weighing as much as 2,000 pounds.

“Our logistics systems can be unmanned and 100% automated in 5 to 8 years,” said Liu Qiangdong, JD’s chairman.

June, 2017 saw two robotics-related companies get $50 million each and 17 others raised $248 million for a monthly total of $348 million. Acquisitions also continued to be substantial with SoftBank's acquisition of Google's robotic properties Boston Dynamics and Schaft plus two others acquisitions.

Fundings

• Drive.ai raised $50 million in a Series B funding round, led by New Enterprise Associates, Inc. (NEA) with participation from GGV Capital and existing investors including Northern Light Venture Capital. Andrew Ng who led AI projects at Baidu and Google (and is husband to Drive.ai’s co-founder and president Carol Reiley) joined the board of directors and said: 
  

  “The cutting-edge of autonomous driving has shifted squarely to deep learning. Even traditional autonomous driving teams have 'sprinkled on' some deep learning, but Drive.ai is at the forefront of leveraging deep learning to build a truly modern autonomous driving software stack.

• Aera Technology, renamed from FusionOps, a Silicon Valley software and AI provider, raised $50 million from New Enterprise Associates. Aera seems to be the first RPA to actuate in the physical world. Merck uses Aera to predict demand, determine product routing and interact with warehouse management systems to enact what’s needed.
  

  “The leap from transactional automation to cognitive automation is imminent and it will forever transform the way we work,” says Frederic Laluyaux, President and CEO of Aera. “At Aera, we deliver the technology that enables the Self-Driving Enterprise: a cognitive operating system that connects you with your business and autonomously orchestrates your operations.”

• Swift Navigation, the San Francisco tech firm building centimeter-accurate GPS technology to power a world of autonomous vehicles, raised $34 million in a Series B financing round led by New Enterprise Associates (NEA), with participation from existing investors Eclipse and First Round Capital. Swift provides solutions to over 2,000 customers-including autonomous vehicles, precision agriculture, unmanned aerial vehicles (UAVs), robotics, maritime, transportation/logistics and outdoor industrial applications. By moving GPS positioning from custom hardware to a flexible software-based receiver, Swift Navigation delivers Real Time Kinematics (RTK) GPS (100 times more accurate than traditional GPS) at a fraction of the cost ($2k) of alternative RTK systems.
• AeroFarms raised over $34 million of a $40 million Series D. The New Jersey-based indoor vertical farming startup has raised over $130 million since 2014 and now has 9 operating indoor farms. AeroFarms grows leafy greens using aeroponics –- growing them in a misting environment without soil using LED lights, and growth algorithms. The round brings AeroFarms’ total fundraising to over $130 million since 2014 including a $40 million note from Goldman Sachs and Prudential.
• Seven Dreamers Labs, a Tokyo startup commercializing the Laundroid robot, raised $22.8 million KKR’s co-founders Henry Kravis and George Roberts, Chinese conglomerate Fosun International, and others. Laundroid is being developed with Panasonic and Daiwa House.
• Bowery Farming, which raised $7.5 million earlier this year, raised an additional $20 million from General Catalyst, GGV Capital and GV (formerly Google Ventures). Bowery’s first indoor farm in Kearny, NJ, uses proprietary computer software, LED lighting and robotics to grow leafy greens without pesticides and with 95% less water than traditional agriculture.
• Drone Racing League raised $20 million in a Series B investment round led by Sky, Liberty Media and Lux Capital, and new investors Allianz and World Wrestling Entertainment, plus existing investors Hearst Ventures, RSE Ventures, Lerer Hippeau Ventures, and Courtside Ventures.
• Momentum Machines, the SF-based startup developing a hamburger-making robot, raised $18.4 million in an equity offering of $21.8 million, from existing investors Lemnos Labs, GV, K5 Ventures and Khosla Ventures. The company has been working on its first retail location since at least June of last year. There is still no scheduled opening date for the flagship, though it's expected to be located in San Francisco's South of Market neighborhood.
• AEye, a startup developing a solid state LiDAR and other vision systems for self-driving cars, raised $16 million in a Series A round led by  Kleiner Perkins Caufield & Byers, Airbus Ventures, Intel Capital, Tyche Partners and others.
  

  Said Luis Dussan, CEO of AEye. “The biggest bottleneck to the rollout of robotic vision solutions has been the industry’s inability to deliver a world-class perception layer. Quick, accurate, intelligent interpretation of the environment that leverages and extends the human experience is the Holy Grail, and that’s exactly what AEye intends to deliver.”

• Snips,  an NYC voice recognition AI startup, raised $13 million in a Series A round led by MAIF Avenir with PSIM Fund managed by Bpifrance, as well as previous investor Eniac Ventures and K-Fund 1 and Korelya Capital, joining the round.  Snip makes an on-device system that parses and understands better than Amazon's Alexa.
• Misty Robotics, a spin-out from Orbotix/Sphero, raised $11.5 million in Series A funding from Venrock, Foundry Group and others. Ian Bernstein, former Sphero co-founder and CTO, will be taking the role of Head of Product and is joined by five other autonomous robotics division team members. Misty Robotics will use its new capital to build out the team and accelerate product development. Sphero and Misty Robotics will have a close partnership and have signed co-marketing and co-development agreements.
• Superflex, a spin-off from SRI, has raised $10.2 million in equity financing from 10 unnamed investors. Superflex is developing a powered suit designed for individuals experiencing mobility difficulties and working in challenging environments to support the wearer’s torso, hips and legs.
• Nongtian Guanjia (FarmFriend), a Chinese drone/ag industry software startup, raised $7.36 million led by Gobi Partners and existing investors GGV Capital, Shunwei Capital, the Zhen Fund and Yunqi Partners.
• Carmera, a NYC-based auto tech startup, unstealthed this week with $6.4M in funding led by Matrix Partners. The two-year-old company has been quietly collecting data for its 3D mapping solution, partnering with delivery fleets to install its sensor and data collection platform.
• Cognata, an Israeli deep learning simulation startup, raised $5 million from Emerge, Maniv Mobility, and Airbus Ventures. Cognata recently launched a self-driving vehicle road-testing simulation package
  

  “Every autonomous vehicle developer faces the same challenge—it is really hard to generate the numerous edge cases and the wide variety of real-world environments. Our simulation platform rapidly pumps out large volumes of rich training data to fuel these algorithms,” said Cognata’s Danny Atsmon

• SoftWear Automation, the GA Tech and DARPA sponsored startup developing sewing robots for apparel manufacturing, raised $4.5 million in a Series A round from CTW Venture Partners.
• Knightscope, a startup developing robotic security technologies, raised $3 million from Konica Minolta. The capital is to be invested in Knightscope’s current Reg A+ “mini-IPO” offering of Series M Preferred Stock.
• Multi Tower Co, a Danish medical device startup, raised around $1.12 million through a network of private and public investors most notable of which were Syddansk Innovation, Rikkesege Invest, M. Blæsbjerg Holding and Dahl Gruppen Holding. The Multi Tower Robot used to lift and move hospital patients, is developed through Blue Ocean Robotics’ partnership program, RoBi-X, in a public-private partnership (PPP) between University Hospital Køge, Multi Tower Company and Blue Ocean Robotics.
• Optimus Ride, a MIT spinoff developing self-driving tech, raised $1.1 million in financing from an undisclosed investor.

Acquisitions

• SoftBank acquired Boston Dynamics and Schaft from Google Alphabet for an undisclosed amount.
  • Boston Dynamics, a DARPA and DoD-funded 25 year old company, designs two and four-legged robots for the military. Videos of BD’s robots WildCat, Big Dog, Cheetah and most recently Handle, continue to be YouTube hits. Handle is a two-wheeled, four-legged hybrid robot that can stand, walk, run and roll at up to 9 MPH.
  • Schaft, a Japanese participant in the DARPA Robotics Challenge, recently unveiled an updated version of a two-legged robot that climbed stairs, can carry 125 pounds of payload, move in tight spaces and keep its balance throughout. 
• IPG Photonics, a laser component manufacturer/integrator of welding and laser-cutting systems, including robotic ones, acquired Innovative Laser Technologies, a Minnesota laser systems maker, for $40 million. 
• Motivo Engineering, an engineering product developer, has acquired Robodondo, an ag tech integrator focused on food processing, for an undisclosed amount.

IPOs

• None. Nada. Zip.

DARPA, the Defense Advanced Research Projects Agency, is researching autonomous co-piloting so they can fly without a human pilot on board. The robotic system — called the Common Aircraft Retrofit for Novel Autonomous Control (CARNAC) (not to be confused with the old Johnny Carson Carnac routine) — has the potential to reduce costs, enable new missions, and improve performance.

Unmanned aircraft are generally built from scratch with robotic systems integrated from the earliest design stages. Existing aircraft require extensive modification to add robotic systems.

RE2, the CMU spin-off located in Pittsburgh, makes mobile manipulators for defense and space. They just received an SBIR loan backed by a US Air Force development contract to develop a retrofit kit that would provide a robotic piloting solution for legacy aircraft.

“Our team is excited to incorporate the Company’s robotic manipulation expertise with proven technologies in applique systems, vision processing algorithms, and decision making to create a customized application that will allow a wide variety of existing aircraft to be outfitted with a robotic pilot,” stated Jorgen Pedersen, president and CEO of RE2 Robotics. “By creating a drop-in robotic pilot, we have the ability to insert autonomy into and expand the capabilities of not only traditionally manned air vehicles, but ground and underwater vehicles as well. This application will open up a whole new market for our mobile robotic manipulator systems.”

Aurora Flight Sciences, a Manassas, VA developer of advanced unmanned systems and aerospace vehicles, is working on another similar DARPA project, Aircrew Labor In-Cockpit Automation System (ALIAS), and is designed as a drop-in avionics and mechanics package that can be quickly and cheaply fitted to a wide variety of fixed and rotor aircraft, from a Cessna to a B-52. Once installed, ALIAS is able to analyze the aircraft and adapt itself to the job of the second pilot.

Conferences and trade shows, held in interesting locations around the world, can be entertaining, informative and an opportunity to explore new places, meet new people and renew acquaintances. Three recent examples: Xponential, the mostly defense-related unmanned land, sea and air show, held in Dallas; Innorobo, focused on service robotics, in Paris; and ICRA, the IEEE’s premier robotics conference, in Singapore.

ICRA

The 2017 IEEE International Conference on Robotics and Automation (ICRA), the IEEE’s principle forum for robotics researchers to present their work, was held this year at the Marina Bay Sands Hotel and Convention Center in Singapore. ICRA continues to have the highest number of cited research papers in the robotics field of all the various global conferences (including IROS).

In an IEEE/Spectrum review of that portion of the conference that was biomedical-related, a swallowable capsule robot capable of needle aspiration, guided by magnets, and an autonomous snake-like colonoscopy robot were two of the hits. Another reviewer found the rehab exoskeletons, haptic interfaces, modular robot components and many of the ROS-enabled solutions of merit. Overall, almost 3,000 robotics researchers attended ICRA 2017 and most found many things of interest (including Singapore and the Marina Sands Hotel).

Xponential – all things unmanned

The Association for Unmanned Vehicle Systems Internation, AUVSI, annual trade show and conference, Xponential, held this year in Dallas, Texas, showed the changing nature of the industry and offered suggestions (guesses) as to where they were going. 170,000 visitors attended while 100 speakers and over 650 exhibitors put on this choreographed show of military weaponry, defense and security systems and equipment, and commercial unmanned air, land and sea systems.

AUVSI’s membership fees are discounted for members of the military and first responders and the exhibitor list continues to favor military/defense-related companies, but most of those companies now have a growing commercial component.

Autonomous vehicles have always been the constituency of AUVSI but with all the money flowing into autonomous car startups, and the talent search to corral people to make this new industry happen, a small portion of this Xponential show was devoted to the prospect of that future (see chart above).

The folks at The National Robotics Education Foundation (NREF) produced a gallery of over 300 interesting photos from Xponential. They also produced a special set of pictures of UAS engines from the show. Unmanned vehicles used by the military, for search and rescue, in support of agriculture and mining, for infrastructure inspection, and in a variety of other circumstances must stay aloft for long periods, hence the interest in engines that can support that amount of air time.

Innorobo

I visited Innorobo. It is a necessary show in a rapidly changing arena. Over 7,000 visitors perused an eclectic group of 170 startups, integrators, component manufacturers and service robot providers exhibiting a wide range of products and services at a site on the outskirts of Paris. Over the 3-day show, 50 speakers explored topics from robotics-related AI to philosophical discussions about law and ethics to the latest innovations in personal and professional service robotics.

The IFR (International Federation of Robotics) says that robot installations in France increased by 22% to 1,400 units in 2016 (compared to 700 units in the UK), particularly within the car industry. France ranks 2nd within the EU for robot density (the UK is 10th). Innorobo started as a show to promote France’s robotics industry (there are 225+ French companies in The Robot Report’s Directories and on our Global Map). Held in Lyon, the show grew to its present size through the hard work and willpower of a small group of inventive women entrepreneurs. It grew and relocated to Paris where it’s been for the last two years. As the focus expanded from promoting in-country robotics to displaying global innovations in robotics of the startup companies, research labs and service robot companies beginning to make inroads aroud the world – the show has become a valuable mainstay for the European press, investors, business executives, students, and roboticists alike.

Events, Directories and The Robot Report’s Global Map

From time to time it becomes relevant to toot the horn of the free resources available on The Robot Report. Our events calendar, directory of companies and educational institutions involved in the robotics industry, and the global map for job seekers and researchers alike are free and always updated.

There are still 28 robotics-related events remaining in 2017. Check them out:

• Hamlyn Symposium on Medical Robotics, June 25-28, London, UK
• Autonomous Systems World, June 26-27, Berlin, Germany
• Conf on Flexible Automation & Intelligent Manufacturing (FAIM), June 27-30, Modena, Italy
• Automation and Robotics Conference, June 28-29, San Diego, CA
• Industrial Automation Shenzhen (IAS), June 28-30, Shenzhen, China
• Forbes AgTech Forum, June 28-29, Salinas, CA
• RoboUniverse Seoul, June 28-30, Seoul, Korea
• Intl Symposium on Automation & Robotics in Construction (ISARC), June 28-July 1, Taipei, Taiwan
• China Intl Robot Show (CIROS), July 5-8, Shanghai, China
• Toward Autonomous Robotic Systems (TAROS), July 19-21, Guildford, UK
• RoboCup, July 25-31, Nagoya, Japan
• World Robotic Conference, August 23-27, Beijing, China
• Farm Progress Show, August 29-31, Decatur, IL
• InterDrone, September 6-8, Las Vegas, NV
• European Conf on Mobile Robotics, September 6-8, Paris, France
• Conf on Field and Service Robotics, September 12-15, Zurich, Switzerland
• RobotWorld, September 13-16, Seoul, Korea
• IEEE AFRICON 2017 and Robotics and AI, September 18-20, Cape Town, South Africa
• ROSCon, September 21-22, Vancouver, Canada
• IEEE Intl Conf on Intelligent Robots and Systems (IROS), September 24-28, Vancouver, BC, Canada
• RoboBusiness, September 27-28, Santa Clara, CA
• Drone World Expo, October 3-4, San Jose, CA
• China Industrial Automation and Robotics Show, November 7-11, Shanghai, China
• AgriTechnica, November 12-18, Hanover, Germany
• Conference on Robot Learning (CoRL 2017), November 13-15, Mountain View, CA
• Collaborative Robots & Advanced Vision Conf, November 15-16, San Jose, CA
• Asian Robotics Exhibition AREX, November 23-24, Singapore
• iREX 2017, November 29-December 2, Tokyo, Japan