#9 JMoon Newsletter - July 2024

Physical AI

The future of AI is in Physical AI and not in its current form with AI agents and specific applications https://www.cnet.com/tech/services-and-software/ai-and-robots-that-do-your-household-chores-dream-on-folks/ Towards the path to creating AGI from what we have currently, Sensors and Actuators will play a big role in helping AI acquire real time environmental data. Without investing in this tactile layer, the future potential of AGI will always be incomplete. This is why Robots, IoT, 3D, XR, and Wearables is a market that's set to grow almost 6x in the next 6 years. The age of robotics is here! https://www.forbes.com/sites/stevendesmyter/2024/07/04/moravecs-paradox-and-the-age-of-robotics/

Driverless systems aren't limited to cars, Self Driving and XR-assisted teleoperation is coming to tractors, buses, trucks, and various construction vehicles soon https://www.seattletimes.com/business/robots-drones-and-driverless-tractors-usher-in-new-age-of-farming/ in all kinds of environments from farming to mining to highway transportation https://www.truckingdive.com/news/torc-robotics-timeline-late-2026-nick-elder/720331/ and off-road / defense https://techcrunch.com/2024/07/25/kodiak-robotics-milestone-driverless/ and may include robot chauffeurs https://www.foxnews.com/tech/you-ready-trust-your-next-ride-robot-chauffeur

If you're an individual investor wanting to build a portfolio in the sector, or a Family Office / CVC looking to diversify into the early-stage of AI x Hardware combination: Reach out to me on JMoon.vc/Chatform. I see deals from all around the world and even the ones involving celebrities and top VCs.

Physical AI Research, Startups, and Market

1. Bakery businesses could use more robots https://www.bakingbusiness.com/articles/61867-looking-to-redefining-the-roi-for-robotics Bakeries are looking for ways to add versatility and drive efficiency in their operations by using smart robotics that adapt to new products and packaging changes https://www.bakingbusiness.com/articles/61909-robotics-will-make-a-great-leap-forward-in-the-near-future Robotics make a move on midsize bakeries https://www.bakingbusiness.com/articles/61953-robotics-make-a-move-on-midsize-bakeries Micro bakeries are a new concept to me and I've been analysing various operations of it that will likely be automated in the coming future and I see opportunities for my existing portfolio and deals in my investment pipeline that could potentially find customers in the food industry.
2. Lots of exciting stuff related to Robotics and #PhysicalAI happening in the Edmonton (Alberta) region from university to industry: https://www.youtube.com/watch?v=KcnYmx1oAjI Thanks for sharing this with me Angelica Menck, MBA
3. Robot cats, dogs and birds are being deployed amid an 'epidemic of loneliness'. There are currently 62 million Americans aged 65 and older, accounting for 18% of the total population. According to Pew Research, that figure is expected to increase to 84 million, or 23% of the population, by 2054.
4. Physical AI technologies combined continue to outperform S&P500 in the public market, a trend that has not changed since 2016 https://www.automate.org/robotics/news/the-bot-brief-135
5. Dog robots might be headed to space https://www.nwpb.org/2024/07/01/how-a-dog-like-robot-is-training-for-space-exploration-on-mount-hood/ and spacetech is taking off in Europe https://therecursive.com/europe-is-the-second-region-for-spacetech-why-and-who-is-contributing-to-that/
6. Deeptech PE firm starts North American HQ in Canada https://betakit.com/jolt-capital-deep-tech/ because of the opportunities here that majority of investors don't think about https://soundcloud.com/betakit/this-deep-tech-pe-firm-was-drawn-to-canada-by-the-data
7. Surgical robots are getting better https://www.forbes.com/sites/forbestechcouncil/2024/07/01/the-future-of-surgical-robotics-innovations-and-predictions/ and the healthcare robotics is growing https://www.techbriefs.com/component/content/article/51145-the-role-of-robotics-and-robots-in-healthcare
8. Japan's massive dual arm robot https://www.theguardian.com/world/article/2024/jul/04/japan-train-robot-maintain-railway-lines New learning-based method trains robots to reliably pick up and place objects https://techxplore.com/news/2024-07-based-method-robots-reliably.html
9. Amazon's Astro is moving away from business version to focus on in-home version https://www.reuters.com/technology/amazon-wind-down-its-astro-business-security-robot-2024-07-03/
10. Adding voice commands to visual perception to AI helps improve robots' learning https://www.technologyreview.com/2024/07/03/1094644/robots-learn-by-listening/
11. China's AI humanoid robots catching up fast with global rivals https://www.globaltimes.cn/page/202407/1315457.shtml
12. Researchers use GPT-4 to control Humanoids with Natural Language https://www.iotworldtoday.com/robotics/researchers-use-gpt-4-to-control-humanoid-robots-with-natural-language and Humanoid robots powered by AI turn heads at World AI Conference https://www.youtube.com/watch?v=3eNIXxnS170
13. Open Television with Humanoids https://www.therobotreport.com/mit-uc-san-diego-researchers-create-open-television-immersive-teleoperation/ and better Human Robot Interaction https://www.theengineer.co.uk/content/news/humanoid-robot-trained-for-improved-human-robot-interactions
14. Like OpenAI, Google's robotics division has seen a revival because of AI https://www.theverge.com/2024/7/11/24196402/google-deepmind-gemini-1-5-pro-robot-navigation
15. Haystack Robotics, Portland startup lands $2.7M for autonomous robots designed to disinfect hotels and hospitals https://www.geekwire.com/2024/portland-startup-lands-2-7m-for-autonomous-robots-designed-to-disinfect-hotels-and-hospitals/
16. New framework enables animal-like agile movements in four-legged robots https://techxplore.com/news/2024-07-framework-enables-animal-agile-movements.html
17. Making it easier to compare robot manipulation research https://www.therobotreport.com/making-it-easier-to-compare-robot-manipulation-research/
18. World's fastest brick-laying construction robot https://newatlas.com/robotics/construction-robot-america/
19. This UAV emulates the behavior of bats and owls, grabbing onto structures using its wings to remain perched high above the ground https://www.theverge.com/2024/7/17/24200522/drone-uav-research-crash-landing-epfl-robots
20. Visual route following for tiny autonomous robots https://www.science.org/doi/10.1126/scirobotics.adk0310
21. Deus Robotics Enables Robots To ‘Speak’ The Same Language https://www.forbes.com/sites/brucerogers/2024/07/17/deus-robotics-enables-robots-to-speak-the-same-language/
22. Social robots market size is estimated to grow by USD 14.23B from 2024-2028 at a CAGR of 41.29% https://finance.yahoo.com/news/social-robots-market-size-set-212500783.html
23. Aescape’s massage robot is poised to totally change the spa industry https://nypost.com/2024/07/25/tech/aescapes-massage-robot-could-totally-change-the-spa-industry/
24. Vayu Robotics launches autonomous delivery robot in the US, signs deal for 2500 units https://www.youtube.com/watch?v=xZpjD4h3_Uo
25. NVIDIA Accelerates Humanoid Robotics Development https://nvidianews.nvidia.com/news/nvidia-accelerates-worldwide-humanoid-robotics-development

Physical AI and Venture Capital Funding

Total average deep tech IRR is about 26%, according to Boston Consulting Group, which is nearly 10x MOIC in typical 10yrs of a VC fund life. Deep tech now accounts for about 20% of all venture capital funding, up from about 10% a decade ago. And over the past five years specifically, it has “become a mainstream destination for corporate, venture capital, sovereign wealth, and private equity funds,” according to a recent Boston Consulting Group report.

India’s First Private Deep Technologies Ecosystem, “DeepTech Hub” deeptechhub.org, a pioneering initiative by 8X Ventures, SanchiConnect & Arctic Invent. This Hub, located in Noida, aims to support up to 10 promising DeepTech startups, providing access to collaborative workspaces, mentorship, and essential shared resources. Our intention is to foster innovation and growth by uniting knowledge partners and driving India's DeepTech ecosystem forward.

AI-driven robotics company Cartken secures $22.5m funding?. The German company plans to use funding to expand partnerships with enterprises and enhance self-driving technology https://www.verdict.co.uk/robotics-company-cartken-secures-22-5m/

Some discussions at Robotics Invest in June covered by Heather Wishart-Smith, P.E., PMP https://www.forbes.com/sites/heatherwishartsmith/2024/07/08/robotics-investment-navigating-hype-reality-and-future-innovation/

Standard Bots raises $63M to bring cobot arms to market https://www.therobotreport.com/standard-bots-raises-63m-to-bring-cobot-arms-to-market/

Advanced robotics startup NAVIGANTIS secures $12M to pioneer a new chapter for stroke care https://refreshmiami.com/advanced-robotics-startup-navigantis-secures-12m-to-pioneer-a-new-chapter-for-stroke-care/

Clarapath brings in $36M to modernize pathology labs with robotics https://www.therobotreport.com/clarapath-brings-36m-modernize-pathology-labs-robotics/

Monarch Tractor sets agricultural robotics milestone with $133M Series C https://www.therobotreport.com/monarch-tractor-sets-agricultural-robotics-milestone-133m-series-c/

Flink Robotics gets €156,000 kick to transform industrial robots in into dynamic workers https://tech.eu/2024/07/30/flink-robotics-gets-156-000-kick-to-transform-industrial-robots-in-into-dynamic-workers/