Robotics could be “the next wave of AI,” or at least that is the recent projection given by Jensen Huang, the CEO of Nvidia. He spoke at a conference in Taiwan about the next frontier of AI and specifically mentioned humanoid robots and self-driving cars.
He is not alone in this forecast. “The AI revolution is coming to robots,” proclaimed a recent Nature article, saying: “Almost every big technology firm with AI expertise is now working on bringing the versatile learning algorithms that power chatbots, known as foundation models, to robotics.”
Israel is a hub for robotics tech companies, with 170 companies pioneering the development of robots in diverse sectors. As mapped by Startup Nation Finder, the sector distribution shows that 33% of the Robotics companies address Industrial Technologies. 23% of robotics companies work in Agrifood Tech. Health Tech represents 19% of the companies; Aerospace and Defense – 9%.
The use of robotics in Industrial Technologies and Health Tech is a known practice worldwide, while the scope of robotics in Agrifood Tech is unique to Israel, rooted in the country’s long heritage of innovation in agriculture.
Robotics Tech is “hot” in the Israeli innovation scene, as the numbers suggest a rapid growth in the number of active robotics companies in Israel, with a pace that is outperforming the overall pace of company formation in Israel. Taking 2017 as a starting point – the number of “Robotics Tech” companies grew by 126%, while “all companies” grew by 107% since then.
To get a sense of it, here are some more robotics headlines from Israeli tech last couple of weeks:
Developing service robots for hospitals – performing repetitive tasks such as delivering meals and supplies – raised $5M in seed funding.
Launching piece picking for online grocery orders robot went out of stealth.
Creating an operating system for drones and robots, has raised $40 million after serving the IDF soldiers, navigating drones in narrow tunnels.
Focused on eldercare, their AI-driven robotic companions like ElliQ assist with daily tasks and provide companionship, addressing critical needs in senior care.
Specializes in wearable robotic exoskeletons that help individuals with spinal cord injuries walk again. This technology has made significant impacts in rehabilitation and mobility. The company has been traded on the NASDAQ since 2014 and holds FDA clearance.
RGo Robotics is the developer of an artificial perception technology that enables mobile robots to understand complex surroundings and operate autonomously just like humans.
As with all other tech sectors, Robotics Tech companies enjoyed the surge of 2021, with more than $500M in funding. The number dropped to $376M in 2022 and about $100M in 2023. Health Tech and Industrial Technologies take the lion’s share of the funding, although, in some years, there has been other investment activity is spread over a variety of subcategories (defended as others in the graph)
Israeli Robotics Tech companies are usually in their early stage of development. In recent years, about half of the funding (in terms of amount) was invested in mid-rounds. In the last couple of years, about 35-40% of the amount in robotics was invested in early rounds.
The top-funded companies in Robotics Tech in Israel represent the category’s diversity. “Fabric,” which has raised $310 million, is developing fulfillment robots for autonomous warehouses in the retail market. “Intuitive,” with $153 million in funding, is developing sensing, mapping, and navigation capabilities for robots, allowing object recognition, obstacle detection, and gesture recognition. “Momentis Surgical” ($96 million) is developing a Surgical Robot for hysterectomy; “Airobotics” ($83 million) works on autonomous drones; “Powermat technologies” ($80 million) enables wireless charging of robots, and “Beewise” ($80 million) develops autonomous beehives to improve pollination.
This table highlights the top-funded robotics companies in Israel (See Robotics Top-Funded Watchlist)
Most of the exits in Robotics Tech thus far were in the Health Tech sector. In 2022, “Equashield,” developing automated drug compounding – to protect healthcare workers from the risks associated with drug exposure – was merged with Nordic Capital in a $300M deal in 2022. In 2020, “Ecoppia,” a robotic solar panel cleaning solution, was listed on TASE, raising $82M.
Israel is developing a diverse Robotics Tech segment. Innovation could be found in a wide area of markets, from industrial robots, robotics for retail and commerce, health and surgical robots, agri-robots, defense tech robots, and home robots for daily tasks.
The solutions vary widely, ranging from developing the robots themselves to developing the core components for robotics like software, sensing, and power solutions. A more elaborate taxonomy of this market is needed alongside its maturity.