Investors back German robotics

Despite the more challenging market environment and falling valuations in the robotics industry, there are still investors investing in robotics startups. According to an article in Handelsblatt, funding in Germany remained fairly stable at $0.6 billion in 2022, with significant investments in companies such as Agile Robots and Neura Robotics. In the U.S., however, there was a significant drop in funding, from over $6 billion previously to $3.6 billion.

There are reasons for the different, worldwide developments in the financing of robotics startups: Because of the shortage of skilled workers and problems in supply chains, demand for robots in Germany is increasing, according to the report. A survey by robotics startup Fruitcore shows that nearly half of German SMEs plan to acquire a robot and 14 percent already use one.

Trend toward software and rental model

There is an increasing trend to focus on software-driven business models. This is because there are already many good hardware options and it is faster and more cost-effective to develop software. It is faster to develop software and easier to find investors. Some startups rely on using established manufacturers and develop applications to use for service or inspection. The trend is clearly Robotic-as-a-Service (RaaS), where robots are rented when they are needed. These models are particularly attractive for medium-sized companies that decide against an initial investment.

Scaffolding robot KEWAZO

Another funding not mentioned in the Handelsblatt article is the $10 million investment in KEWAZO, a Munich-based company founded in 2018 by Artem Kuchukov. It is digitizing the construction industry with the help of robotics and data analytics. So far, the company has focused on scaffolding. Erecting scaffolding is strenuous, not without danger and an unproductive job. The shortage of personnel in this field is increasing and the demand for automation in this area is growing. The company's first product is the LIFTBOT. An intelligent robotic elevator for construction and industrial sites. Since 2021, dozens of LIFTBOTs have been in use on construction sites across Europe including industry giants Billiger and Altrad.According to KEWAZO, robotics can save 70% of the hours invested in scaffolding.