I want to clarify that when I mention robots, I'm not referring to fantastical android figures like Robocop or Terminator. Instead, I'm focusing on artificial intelligence, which can be in the form of software rather than physical hardware. This type of AI has the capability to take over certain tasks that were previously done by humans, such as mechanical production, information analysis, and decision making.

I've been fascinated by robotization since the early 2000s which makes it more than 20 years of dabbling in the field already, huh, time flies. Working at CISCO introduced me to new technologies and their potential applications. The idea that robots could replace humans in various tasks left a lasting impression on me. And guess what? It actually happened! At CISCO, we automated processes like discount requests for clients. All we had to do was input data into the algorithm, and the machine made informed decisions. Clients could now get discounts 24/7 without overworking our operators. It was revolutionary! This experience inspired me to dive deeper into the world of robotics.

In the early 2010's, my interest in urbanization projects grew as I started working with development and construction companies. Automation in modern cities is incredibly productive across various domains like housing, utilities, sanitation, transportation, and even social services. Robots play a crucial role in every stage of building construction, from blueprinting and erection, maintenance, and even demolition. The process is simple: detectors collect data, AI processes it, and humans carry out the optimal solution. But here's the kicker: imagine a world where robots handle all these tasks without exploiting people. That's the future we're heading towards! While robot technology wasn't as advanced back then, humans were still needed for certain complex and procedural jobs. But even in the mid-2010's, robots were capable of building multi-story buildings. Since then, incredible progress has been made, and now we're looking at major changes in the industrial domain!

In today's modern world, the possibilities of robots are endless, with their ability to conquer any task you can dream of with approximately up to 60% of manufacturing activities being susceptible to automation With my unwavering fascination for this incredible sector, I made the decision in the late 2010s to invest in the very companies that bring these remarkable assistants to life!

At the moment, there is a project in my portfolio that operates in the market targeted specifically at manufacturing facilities. With constant and intensifying growth of installation each year, this market has the highest demand for such technologies. Last year, only across Europe more than 70,000 units were installed which speaks for at least a 5% rise in comparison to the previous period. And Europe isn't even the most automated region around the globe with China and South Korea installing hundreds of thousands pieces annually each. Keeping in mind that there are still many regions and niches that are yet open to such profound robotization and will show 10 times higher increases, the limitless potential becomes vivdly apparent.

The growing demand for automation in various industries can be attributed to several compelling reasons that are more or less universal across all niches of production. Here is the list of the main driving factors allocated by inventors who work to provide robotic solutions.

1. Monotonous work One of the primary drivers is the prevalence of monotonous and uninteresting work that has traditionally relied on human labor. Take, for example, tasks like moving or packing goods, which typically involve several individuals. It's not uncommon to observe workers engaged in conversations and enjoying themselves while away from their workstations. However, as soon as they return to their monotonous tasks, a noticeable change occurs: the light behind their eyes dims, and they seem almost lifeless. Would anyone argue that it hurts BOTH the business and the employees? The introduction of hand manipulators and other robotics technology can significantly alleviate the burden of repetitive and uninteresting work. These systems can efficiently handle the rearrangement and packaging of goods, tasks that would otherwise be performed by individuals who may become disengaged and unenthusiastic. The automation of such jobs not only improves efficiency but also eliminates the tedium associated with them.
2. Human errors It's easy for human operators to forget some minor part of the job or become distracted during these repetitive tasks. And while it’s normal for us people, this could jeopardize the quality and value of the products being manufactured. Human errors in manual labor can have costly consequences. Yes, some amount of damaged goods is inevitable for any production and, hence, pretty common. It may be overlooked if the cost is a couple 1 euro cookies. But if we think of mistakes at factories that deal with more expensive materials, like lead cables, an accidental pause could result in misformation of half an armor on a multimillion product. A more significant financial loss, isn’t it?
3. Lack of human resources As per the factory owners, the challenge of finding an adequate workforce for these positions has become increasingly apparent in recent years. Many factories struggle to recruit and retain individuals for roles such as packers, stackers, and loaders, often requiring a large workforce to meet production demands. The physical demands of these jobs, including body pain and long working hours, deter potential candidates and contribute to labor shortages.
4. Instability The instability in the labor market compounds the issue. In areas where multiple factories operate in close proximity, competition for workers intensifies. Companies may engage in tactics like offering longer lunch breaks or higher wages to lure employees away from their competitors. As a result, worker turnover becomes a common problem, leading to disruptions in production processes. During the summer months, some employees may even choose to quit their jobs temporarily to pursue other activities, leaving companies without a reliable workforce.

Looking at all these tendencies, I see one thing: as businesses seek more stable and efficient solutions, automation and robotics are becoming indispensable tools to address these challenges and drive productivity and reliability in manufacturing processes.

So, how does automation solve these issues and what it offers instead? I would say: a world of possibilities.

1. Boosting Efficiency and Productivity The biggest benefit on the line is definitely efficiency. Picture this – with robots lending a hand, factories can boost their efficiency levels sky-high. Production output soars, and operational costs take a nosedive. The numbers don't lie: clients of the robotics startups that I work with had an increase in production and reduction of downtime up to 20%.
2. Precision and Quality Control When it comes to precision and quality control, robots are the undisputed champions. They ensure every manufacturing process is as precise as a laser beam. What's more, they maintain consistent product quality, practically eliminating defects and waste.
3. Lower costs and quick payback Did I mention cost savings? A one-time automation eliminates the necessity of providing multiple employee salaries, not to mention all those extras like taxes, HR, and even the office essentials like toilet paper and soap. It's no wonder automation offers a quick payback – it is possible to see returns in as little as two years. Some pieces could even top that. If the task is fit for a particular model, a machine with a full installation cycle could equal just 1.75 of an average worker's yearly salary. Not to mention, it usually replaces several human shifts a day. So, even if the diminuation of labor costs seems an obvious follow-up, I really advise you to pay attention on how much you can ACTUALLY save.
4. Easy scaling and personalized schedule Scaling up your operations has never been easier. With robots, scaling happens at lightning speed. Production lines are known to work round the clock, but here's the kicker: they often don't run at full capacity. Robots can change that. At some markets, it is common for industrial lines to work around 90% of the time. And if a line operates for less time, a massive scaling could be done just by letting the robots step in to keep it running continuously. No need to hire additional hands for round-the-clock shifts. When it comes to scheduling, robots offer a level of personalization that's truly impressive. They can adapt to unstable schedules, making sure you get the most out of your production time. Adding an automated line is also less costly, which can serve companies that are already in the 24/7 mode and boost their scaling intentions.
5. Crisis resilience In times of crisis, finding the right workforce can be a major headache. But here's where robotics industry truly shines. A factory equipped with automation technologies is far less exposed to this risk. Autonomous vehicles can keep working even when people can't gather – think pandemics or any situation where human presence is limited. An industrial robot doesn't get sick, and that's a huge win for automated production. When there's not enough people to go around, automation saves the day.
6. Low maintenance and reduced costs Let's talk sustainability. Some of the robots are the green champions of the manufacturing world. Even electric vehicles are incredibly economical when it comes to energy usage. To put it in perspective, the energy spent on heating your home could power a whole army of robots. And guess what? Robots have the environment in mind. They don't waste water like we do – no more handwashing, floor mopping, or laundry to worry about.

Worried about the long-term game? There are several benefits of betting on robotics companies that adapt to changing market needs. Here’s why that's where I am choosing to put my money in for sustainable returns.

It’s a steady-paced market
In the world of IT, things move at breakneck speed, and companies can rise and fall in the blink of an eye. But in industrial robotics, we're talking about hardware and factories, which are as significant as real estate. Factories are bustling with activity, and they have the budget (that's the B2B game). With just a couple millions, you can make a significant impact on production. What sets robotics apart? The niche is vast and seemingly limitless. There's less risk that a robotics company will become obsolete in the near future, unlike software. So, when considering sustainable investments, hardware automation startups offer a compelling opportunity. The Japanese market's $7.35 billion in orders is important for understanding the global industrial robots market. Last year, the market was valued at $26.52 billion, with Japan accounting for over a quarter of it. The industry is projected to grow at a CAGR of 10.5% between 2023 and 2030, reaching a value of $60.56 billion. Asia Pacific dominated the market in 2022, accounting for 65% of it.

There is a worldwide potential
The key drivers of robotic process automation don’t actually differ across the globe. Regarding the current statistics any country could potentially supply tens or hundreds of times more robots while maintaining the high jump in efficiency in comparison to human labor. Even the global average number of robots per human workforce is rather low, and there still are many countries that are looking forward to attaining this bar.

Many niches are historically vacant
Historically, certain niches have been left untouched by automation. But here's where innovation steps in, aiming to save humanity from inefficient and mundane labor across all industries. Imagine how automation can transform everything from cookies to eggs to bread production, making it faster and more efficient. While there may already be leaders in some fields, the opportunity for growth and improvement is still vast – if a startup introduces a robot that is particularly good for a specific type of goods, the championship is a question of a very short notice. In terms of use cases, the electronic component manufacturing and assembly segment made up 25% of the market while the chemicals segment is expected to grow at a rate of 12%. Robots excel at repetitive tasks and are not at risk of health damage from handling chemicals.

Although many products seem niche-focused, they are usually rather universal and customizable
We chatted about the myriad applications of robotics, from manufacturing and healthcare to agriculture and logistics. Want a safe bet? Go for startups that both have a broad scope and enough understanding of their own technology to adapt it into a more niche product. This way, you’ll open more potential markets and have a chance to gain leadership in assisting clients that make a particular type of product.

The room for improvement is already vast all over
Why focus on factories? Because there's an incomparable abundance of labor that can be easily replaced, especially in industries like food production. While vehicle production may churn out a hundred pieces a day, a food plant could produce thousands or millions of units daily. Just imagine this scale! According to current projections the robotics market is expected to grow at a CAGR of 14.3% from 2022 to 2027, reaching a value of US$30.8 billion. This growth is driven by the demand for robots in various industries, including consumer goods manufacturing, food processing, packaging, and ecommerce supply chain automation.

You are likely to meet an alliance of proper idea, team and execution
A qualified team of inventors is at the heart of it all. Their brains are hardwired to tackle challenging and creative tasks posed by robotic inventions. With the right team that gets off on creative problem-solving, any development can be modified and improved to cater to specific client needs.
The world of industrial robotics is teeming with potential, offering transformative opportunities for investors and innovators alike. With the right mindset and strategic investments, we're on the cusp of a new era in manufacturing, one where efficiency and sustainability go hand in hand. So, venture investors, it's time to embrace the future and be part of this exciting journey.

When it comes to automation, we're on a journey to optimize every aspect of production, but there are still some tasks that require the touch of a human operator. Take, for instance, stacking small snack boxes or folding non-standard ones. Although it's technically feasible to automate these processes, it often doesn't make financial sense. Why, you ask? Well, because certain tasks, like navigating a warehouse to find specific boxes (while discarding damaged ones), can be so complex that it will take decades for a properly built machine to pay off, even if it is a collaborative robot that works in unison with its human colleague. However, it's not all limitations in the automation game. There are plenty of areas where automation can work its magic effortlessly, and these opportunities abound across different niches, especially in the cookie production sector, where numerous factories can benefit from automation.

1. Adding Electronic Brains for Super Efficiency One way to make automation shine is by adding the right software to the equipment. This not only streamlines operations but also boosts efficiency significantly. Especially with the projects that combine several small tasks operated by rather mobile robots into one bigger mechanism. Factories, like those in the food sector, have the potential to benefit immensely from this upgrade.
2. A Hand Manipulator: Bridging the Gap Now, let's talk about hand manipulators. These robotic marvels have the potential to take over tasks that were once tailored for humans. Think about it – most workplaces in factories are designed with humans in mind, from size and height to width and lifting capacity (typically up to 30 kg, following human workforce standards and reglaments). And these usually fairly mobile robots are just enough to fit an already pre-arranged space! In many scenarios, such human-like robot could seamlessly step in to replace humans, and the benefits extend to both businesses and their employees. With a manipulating arm that closely resembles a human's in terms of height and load capacity, a wide range of tasks can be automated, making processes more efficient and accessible.

So, while there are certainly limits to the automation process, there's also a world of potential waiting to be unlocked, especially when it comes to tasks that a hand manipulator with human-like capabilities can handle with finesse. It's all about finding that sweet spot where technology meets efficiency.

Despite the robotics industry being versatile and flexible with many room for capitalization of pretty different inventions, there still are main features of the final product I particularly pay attention to when working with the robotics companies and their projects.

Simple is key
When it comes to designing an exceptional robotic technology, simplicity is the key. It's all about avoiding unnecessary features and intricate details that aren't exclusive to production, ensuring easy replacement if needed. After all, more isn't always better – that’s just Occam's razor.

Payback speed
Speedy payback is a vital factor to consider. In today's dynamic market, waiting for more than 5-10 years for a return on investment isn't particularly appealing. While in some European countries it could be considered a good investment horizon, other clients will be looking for a payback period of around 3-4 years. So, an inventive company that beats that is a diamond!

Easily customizable
Customizability is another essential feature. A competitive product in the robotics sector should offer flexibility between universal hardware and easily developed software. While spare parts like electronics and pneumatics might be a bit trickier, the strategy is clear: avoid using exclusive spare parts to ensure ease of restoration. If it can be assembled anywhere in the world – it can be globally sold.

User-friendly
A symbiosis of mechanics and electronics is something that should be done smartly. How? Being user-friendly is a priority and a competitive advantage. Programming robots can be challenging, often requiring a dedicated specialist. Intuitive interface is a win for a product. And if developers can provide remote or on-site support, that would broaden their choice of clients, including those who don’t have a specialized in-house tech-team. And for those who do, training and guidance should be included in the package. Recommendations and checklists for routine maintenance to ensure smooth operation could also be of help.

Fast track
From finding a client to finalizing the deal, the process could be rather timely. The steps of the pre-deal stage include identifying production niches, pinpointing the top manufacturers, reaching out, and evaluating specific needs before crafting a compelling commercial offer. This process usually takes from 6 to 12 months at best. So, if implementation after signing the deal is about the same time, it could be considered a quick sell!

Reasonable costs
Investors, listen up: efficient production is the name of the game. Startups that know how to make robots without burning a hole in their pockets are more likely to rake in the profits. It may seem that it takes enoremous amounts of money to get into automotive industry, however democratization of robotic solutions is already a fast-pacing trend! The demand for robots is expanding, and many mid-sized industrial companies should have proper access robotics and AI, just as much as bigger market players. Those robotics firms that have deep understanding of current industry and keep up with the growing industrial robot market size are there to provide solutions that speak to both their clients' unique necessities and capabilities.

In-House Quality Testing
Just like in production itself, quality control is king in the robotics industry. Look for startups that take quality seriously and put their robots through rigorous testing themselves.

Some workflows could reduce up to 70% of staff operating a particular task in an outdated manner by means of automation executed by implementing just 1 robotic set. Wondering if your production could significantly benefit from robotic automation? Here's a quick list of tips to help you assess whether automation is the right path for your business:

1. Number of Workers. If you have more than four employees involved in performing monotonous tasks, it's a strong indicator that automation could be beneficial. Monotonous tasks are repetitive, time-consuming, and often result in reduced productivity and employee dissatisfaction.
2. Repetitive Tasks. Look at the tasks your employees are doing. Are they doing the same task repeatedly? If so, it's a sign that automation might be a suitable solution. Robots excel at handling repetitive tasks with precision and consistency.
3. Visual Assessment. For a preliminary assessment, even a one-minute video can be enough for a professional to identify key areas where automation can make a significant impact. You can document the tasks being performed, and a robotics expert can provide insights into potential automation opportunities.
4. Widespread Opportunities. Automation opportunities can be found in various industries and processes. Regardless of where you look, there are often multiple tasks that can be automated, from manufacturing and warehousing to healthcare and logistics.
5. Complexity and Outdated Processes. Automation becomes increasingly attractive when human labor becomes too complex for the initial task or when processes are significantly outdated. If your current processes are inefficient and costly due to human involvement, it's time to consider automation.
6. On-Site Assessment. To get a comprehensive understanding of automation potential, robotics experts may visit your facility. They can evaluate the technical solutions, the specific tasks that could benefit from automation, and calculate the economic feasibility.
7. Employee Input. Don't underestimate the input of your employees. They often have valuable insights into which tasks could be automated. Their firsthand experience can provide valuable information for assessing automation opportunities.

In summary, if you have a substantial number of employees engaged in monotonous, repetitive tasks, and you're looking to enhance efficiency and productivity, automation could be the solution. Begin with a preliminary assessment, seek expert advice, and explore the potential for automation in your specific production processes.

As you can see, I am an enthusiast. But in the world of robotics and investment, the journey is filled with promises, potentials, and, at times, skepticism. It's a journey where every factory has its unique story, often featuring a character—a mechanic, a security guard, or someone else—who initially doubts the capabilities of robots. They voice their doubts, stating that these machines won't work for them, that automation is an unattainable dream. Then, something remarkable happens. As the robots are introduced into the production process, the skeptics start to change their tune. They begin to ask how to operate the machines on their own, even before everything is set up. They become eager and enthusiastic, eager to be part of the robotic revolution. This transformation is a testament to the incredible power of robotics. It's a reminder that, despite initial disbeliefs, automation can revolutionize industries, streamline processes, and drive productivity to new heights. While venture investors can find themselves at the forefront of this transformative journey with such crucial sectors as healthcare, banking and agriculture rapidly jumping into the benefits. So, let us ride this wave, embrace the possibilities, and invest in the future of robotics, where evolution knows no bounds.