Rodney Brooks is one of the giants of the robotics industry. In 1990, he co-founded iRobot to find ways to commercialize the technology. But it was not easy. It was not until 2002 that the company launched its Roomba vacuuming robot, which was a big hit with consumers. As of this writing, iRobot has a market value of $3.2 billion and posted more than $1 billion in revenues for 2018.
But iRobot was not the only startup for Brooks. He would also help to launch Rethink Robotics—and his vision was ambitious. Here’s how he put it during 2010, when his company announced a $20 million funding:
Our robots will be intuitive to use, intelligent and highly flexible. They’ll be easy to buy, train, and deploy and will be unbelievably inexpensive. [Rethink Robotics] will change the definition of how and where robots can be used, dramatically expanding the robot marketplace.33
But unfortunately, as with iRobot, there were many challenges. Even though Brook’s idea for cobots was pioneering—and would ultimately prove to be a lucrative market—he had to struggle with the complications of building an effective system. The focus on safety meant that precision and accuracy was not up to the standards of industrial customers. Because of this, the demand for Rethink’s robots was tepid.
By October 2018, the company ran out of cash and had to close its doors. In all, Rethink had raised close to $150 million from VCs and strategic investors like Goldman Sachs, Sigma Partners, GE, and Bezos Expeditions. The company’s intellectual property was sold off to a German automation firm, HAHN Group.
True, this is just one example. But then again, it does show that even the smartest tech people can get things wrong. And more importantly, the robotics market has unique complexities. When it comes to the evolution of this category, progress may be choppy and volatile.
As Cobalt’s Schluntz has noted:
While the industry has made progress in the last decade, robotics hasn’t yet realized its full potential. Any new technology will create a wave of numerous new companies, but only a few will survive and turn into lasting businesses. The Dot-Com bust killed the majority of internet companies, but Google, Amazon, and Netflix all survived. What robotics companies need to do is to be upfront about what their robots can do for customers today, overcome Hollywood stereotypes of robots as the bad guys, and demonstrate a clear ROI (Return On Investment) to customers.34
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