#3: JMoon Newsletter - Feb 2024

Highlights (1 Feb to 29 Feb 2024)

After a few hick-ups in internet issues and me having a bit of bad health bout which slowed me down, there are still so many amazing updates from Feb

1. Connected with 19 Founders, 11 Angel Investors, 8 Institutional Investors and New/Emerging Fund Managers like myself, 9 Startup ecosystem service providers in US and Canada
2. Got to connect with 3 founders and a few incubators in India
3. It was amazing to attend my first ever meeting of Keiretsu Forum Canada
4. I got to attend DCVC 's Deeptech Reception in Toronto and finally meet Filip Stoj and Irfan Ahmad in person
5. Thanks to James Burron, CAIA I got to attend CAASA - Canadian Association of Alternative Strategies & Assets events
6. The Angel Squad Toronto meetup dinner with ?? Rohan Nair Daneal Charney Kowsheek Mahmood Dinar Ahmed Claire Liang Jessica Kishimoto
7. Got to record 2 podcasts on topics of startup ecosystems, global economic conditions, what the future of Physical AI startups is that use a combination of AI and Hardware and how the adoption for these is going to shape the future. Watch the one I did with Cogya here: https://www.youtube.com/watch?v=IRJLnfCEsd8
8. Delivered a workshop with DMZ on How to Talk to Investors.
9. As a Mentor in The Forum attended the Semi Final pitch event for startups which was fantastic!
10. VC Lab program was incredibly tough with the challenges but also much needed in my journey to starting a VC firm. It has been incredibly beneficial in understanding both real-world and technical behind-the-scenes challenges of starting and running a VC firm.
11. I also got to attend the most wonderful gala event organized by Punjabi Chamber of Commerce in Toronto, which I've been a member of since its early days of inception. In the past few years this community has come such a long way and there's more to come which I am incredibly excited about being a part of.

What is Physical AI

Physical AI refers to the use of AI techniques to solve problems that involve direct interaction with the physical world, e.g., by observing the world through sensors or by modifying the world through actuators. It is the perfect implementation, allowing wide adoption of Hardware in Robotics, IoT, 3D Printing, XR, Wearables, and more! Here's how Large Models (LXMs) get deployed within Physical AI.

Large Language Model (LLM): Natural language interaction with devices using speech

Large Action Model (LAM): Real-time adaptive robotic autonomy - this is key towards achieving AGI and Ubiquitous Computing

Large Vision Model (LVM): Visual object detection, recognition, and tracking in robots, AVs, and surveillance

Large Multimodal Model (LMM): Contextualizing smart environments and wearables

Large Generative Model (LGeM): Synthetic 3D data generated for realistic simulations

Large Graph Model (LGM): Social interaction graphs and network connectivity in fleets

Large Reinforcement Learning Model (LRLM): Adaptive behavior to improve dynamic system efficiency

The applications for these LXMs will encompass what I call the 6D's of Deployment: Dirty environments, Dull repetitive tasks, Dangerous hazardous tasks, Domestic entertainment and hospitality, Dexterous precision motor skills, or, Dear expensive tasks, or a combination of 2 or more of these in various environments like this startup: https://www.potreroview.net/rapid-robotics-takes-care-of-tasks-not-ideal-for-human

Tips for Physical AI Founders

1. Technical aspects of building better humanoids: https://www.kollmorgen.com/en-us/blogs/build-better-humanoid-lightweight-torque-dense-robot-ready-motion even BMW is getting in on it: https://www.assemblymag.com/articles/98340-bmw-to-deploy-humanoid-robots
2. Sectors that will be hugely impacted in the next few years in Canada and US where the combination of AI and Hardware will create new opportunities are Retail, Hospitality, Eldercare along with Agriculture. Immigration rules in Canada have changed for students which means that the gap in jobs that are usually taken by college students will be impacted and will need to be automated. For example, these robots deployed in grocery store to take over some retail tasks https://www.therobotreport.com/spartannash-deploys-simbe-tally-robots-60-more-stores and these robots helping with indoor farming https://techcrunch.com/2024/02/14/hippo-harvest-series-b-fundraise
3. Even Y Combinator is starting to look for more AI powered Robotics/hardware focused startups to join its program: https://finance.yahoo.com/news/y-combinator-seeks-startups-robotics-140013774.html
4. 5 new trends emerging in this space are Artificial Intelligence and machine learning, including generative AI, revolutionizing robot programming, enabling intuitive control through natural language and predictive maintenance through data analysis. Human-robot collaboration, advanced sensors, and smart grippers are driving the expansion of cobots, which support workers in tasks like heavy lifting and dangerous operations. Additionally, mobile manipulators automate material handling across industries, while digital twins optimize performance through virtual replicas, and humanoid robots offer flexible integration into various work environments https://www.thescxchange.com/articles/9630-ifr-says-five-trends-will-drive-new-robot-applications-in-2024
5. Traditional B2B Robotics companies will start to see their growth level out unless they put AI into the mix: https://www.therobotreport.com/3-ways-abb-sees-ai-driving-robotics-innovation

Hardware Research, Startups, and Market

1. Starship raises $90M: https://venturebeat.com/ai/starship-technologies-raises-90m-for-robot-delivery-service
2. Robot for Nailcare industry: https://www.fastcompany.com/91016475/these-guys-built-a-robot-to-give-you-a-perfect-manicure-can-they-win-over-the-11-billion-nail-care-industry
3. Robot Guide Dog for the visually impaired https://www.iottechnews.com/news/2024/feb/08/robot-guide-dog-to-help-visually-impaired
4. Nauticus Robotics raises $12M https://www.therobotreport.com/nauticus-robotics-secures-investment-propel-aquanauts-autonomous-exploration
5. Robots in the future of Restaurant industry: https://www.kbtx.com/2024/02/09/solution-or-gimmick-what-role-will-robots-play-future-restaurant-industry
6. How Open Source AI is changing the adoption of Robotics and will affect the future of Hardware as well which is why Physical AI is set to transform multiple industries: https://www.freethink.com/robots-ai/domestic-robots
7. Robots of the Future that will leverage AI along with the existing hardware capabilities in sensors and actuators that have been improved incredibly over the last few years: https://www.fastcompany.com/91026373/these-5-robots-of-the-future-could-make-our-cities-better
8. Using AI for multi language support is a great way to extend your existing capabilities like Carbon Robotics is doing: https://roboticsandautomationnews.com/2024/02/13/carbon-robotics-adds-new-capabilities-to-meet-strong-global-demand-for-laserweeder/79853
9. Advanced Manufacturing is seeing a push in Austin, Texas https://www.recenter.tamu.edu/news/newstalk-texas/?Item=30625
10. Robots at Work Panel at CES: https://www.therobotreport.com/robots-at-work-at-ces-panel-replay
11. Robots and AI working together will lead to massive change in industries and sectors now than ever before in history: https://chicago.suntimes.com/2024/02/18/robots-rise-up-relax-chicago-its-not-skynet-yet
12. Robots in Construction: https://techcrunch.com/2024/02/17/dutch-startup-monumental-is-using-robots-to-lay-bricks https://www.youtube.com/watch?v=2K-cq4YDC74
13. Uber Eats testing deliveries with Robots in Japan: https://www.cnbc.com/2024/02/20/uber-eats-to-begin-self-driving-robot-deliveries-in-japan.html
14. GTC 2024 is going to be WILD: https://nvidianews.nvidia.com/news/see-the-future-at-gtc-2024-nvidias-jensen-huang-to-unveil-latest-breakthroughs-in-accelerated-computing-generative-aiand-robotics
15. Advanced Robotics market is estimated to grow to USD 68 Billion by 2030 with a CAGR of 15.77% https://www.whatech.com/og/markets-research/it/781918-advancing-automation-size-share-and-trends-in-the-advanced-robotics-market
16. UBTech Humanaoids being tested at Nio factory: https://cnevpost.com/2024/02/23/nio-testing-use-of-humanoid-robots-in-plant
17. RobCo raised $42.5M robots in manufacturing https://www.therobotreport.com/robco-raises-42-5m-for-automation-for-small-midsize-manufacturers

Hardware and Venture Capital Funding

Hardware investing is making a comeback: https://confluencevcweekly.beehiiv.com/p/is-hardware-cool-again

Because of how AI is solving problems of adoption in the sector, Physical AI which combines AI and hardware will be a massive field. But once again, if investors make the mistake of investing in "Cool", it'll be a disaster for the ecosystem. Investing in Physical AI needs the kind of strategy that I've spent the last 7 years building so I always encourage those who want to invest in the sector to reach out to me and ask me how.

People are also starting to recognize that we need more technically adept people and operators within VC in the sectors that combine AI and Hardware https://tech.eu/2024/02/10/europe-needs-more-scientists-in-vc-to-become-a-deep-tech-powerhouse as they have a much better way of judging founders and the technology in the early stages.