Roboligent is raising capital through common equity at a pre-money valuation of $28.8 million. While high valuations aren’t unusual for experimental technology companies, this valuation is extremely high for a startup with a product that has yet to demonstrate market fit. Roboligent has seen very limited revenue thus far, so the revenue multiple on this round is very high. Therefore, Roboligent’s price score is its lowest across all of five metrics.

Roboligent’s lineup of RaaS (Robots-as-a-Service) products fits nicely into the global autonomous mobile robot market — especially as it attempts to expand to Asia in the immediate future. The market isn’t large, as it was valued at $1.9 billion in 2019. However, innovation is driving growth at an impressive CAGR of 19.6% through 2027. Autonomous mobile robots are being adopted across a number of industries. Major competitors can largely be found in Asia, especially Japan, which hosts three of the world’s five largest robotics companies. Appropriately, Asian markets are the primary drivers of the market’s growth. 

While the current market is still limited, rapid growth indicates that this is an excellent time for an emerging company to claim a strong niche for itself. Thus, the market score for Roboligent is above average.

Founder and CEO Bongsu Kim appears well-equipped to lead Roboligent. Kim holds a PhD in robotics with a focus in rehabilitative robotics from the University of Texas at Austin. There, he developed an advanced exoskeleton robot called HARMONY, designed to provide therapy to patients suffering from spinal and neurological injuries. Prior to his studies in the US, Kim studied at Korean engineering schools KAIST and Hanyang University, then worked as a research engineer for Korea Electric Power Corporation, the largest electric utility in South Korea. While he holds no exits, he brings considerable experience in a new and growing space.

To round out his team, Kim has brought on a number of experienced robotics and software engineers, two of which studied at UT Austin while he was conducting PhD studies there. Robotics Engineer James DeBacker worked as an engineer for Southwest Research Institute for two years, collaborating with General Electric and the Department of Defense on developing algorithms for research. Software Engineer Jovita Ezeokafor likewise spent seven months working with Southwest and developed software for a NASA proposal.

Mechanical Engineer Yi Herng Ong holds a master’s degree in robotics from Oregon State. For his degree he specialized in robot learning and manipulation and published research at robotics conferences. Operating Officer Seonhwa Shin rounds out the team. She holds a master’s degree in Statistics from Ewha Womans University, the world’s largest female educational institute. Shin spent more than six years working as a researcher with the Korean Institute of Oriental Medicine and Korean Research Institute of Bioscience and Biotechnology. She manages Roboligent’s marketing and finances.

Finally, Roboligent also brought on serial entrepreneur Alessandro Biglioli and software developer Karen Smetana as advisors. 

The Roboligent team brings deep expertise in robotics and software development, both key skills in a company like this. Although there is little past entrepreneurial experience, that may be compensated by the company’s advisors. Overall, the team score for Roboligent is very strong.

While the robotics market remains small and undeveloped, it is growing rapidly. Well-funded competitors are emerging in Asia and the world’s research universities. Applications of robotics vary widely, from drones and self-driving vehicles to warehouse robots, but industrial uses are the most prevalent currently. Robligent is targeting warehouses and physical therapy for its machines. The company is likely to have first moved advantage in the clinical space, as there has only been limited use of robots in surgical tasks thus far. Roboligent has initiated five patents for its force control technology, all pending. As for the product itself, development is in the pilot program phase. 

Robotics is a time and capital intensive field, and Roboligent has already spent years developing its dexterous machines. Its pending patents help add to the company’s defensive moat. Targeting the physical therapy space could be a major advantage as it is one of the first companies to do so. Overall, Roboligent has developed a unique product offering, and its differentiators score is quite high as a result.

Roboligent is pre-profit thus far but has performed relatively well. After several years of up-front work and a name-change, the company took in $13,852 last year with a COGS of $9.610. That year saw some drain on the business’s cash reserves, and its short-term debt more than quadrupled to about $78,500. Overall, its liabilities are fairly manageable for a startup. On the development side, the business has established a contract with Seimitsu Factory Automation in Singapore as a supplier for the Asian rehabilitation market. The first pilot unit was shipped out in mid-April.

To fund its early development, the business secured a $1.2 million grant from the National Science Foundation’s Small Business Innovation Research Program. The program provides funding to hundreds of businesses, including many robotics startups, but it is quite rare for a business to secure funding from both rounds. Roboligent has also conducted friends and family fundraising to gather $500,000 in investments.

With growing revenue and strong past funding, Roboligent’s performance score is above average.

The risk profile for Roboligent is quite high. As a new and potentially dangerous technology, robotics is a highly-regulated industry. In Roboligent’s case, robots are working directly with both human medical patients and human warehouse workers. While the therapeutic entry point is likely to be Roboligent’s anchor to standing out in a space, acting as a medical device means even more regulatory concerns. In addition, robotic devices are complicated, and scaling production is likely to take time and be hugely capital-intensive.

In addition, while the team as a whole is solid in educational credentials, there are some notable gaps in legal expertise as well as sales and marketing experience. Roboligent will need to expand its roster as it moves beyond development and testing into full-fledged business operations. Such processes are guaranteed to take a number of years, as the business must complete convoluted approval processes while securing manufacturing processes and sales contracts.

While Roboligent isn’t as early in its development as a number of overly ambitious startups, it hasn’t yet secured proof-of-product, as it awaits results from its first pilot program. The concept is excellent, but theory is always secondary to how well the product actually works. In addition, attempting to enter through two different market spaces entirely separated from each other is likely to be a difficult lift for a startup without any current expertise in business or entrepreneurship.

Roboligent’s overly high valuation is a definite concern for investors. The business has operated on a tight budget thus far, but up-front costs for scaling up production of these robotics units will be unavoidably large. The company will likely need to raise additional funding as it expands globally, and that could lessen the advantage received by early investors in this round.

Roboligent has a number of challenges ahead, but it has made ample progress. Robotics is an industry growing by leaps and bounds and has been since the 1970s. Making robots safe for human interaction is the necessary next step according to some experts, and Roboligent’s patent-pending force protection technology could be just the thing to propel it to the head of the market. The founder’s expertise in robotics has led the company to secure a significant amount of grant funding from the National Science Foundation, which could portend future success in securing the funding necessary to scale up manufacturing.

Roboligent is bringing the power of advanced automation to a global robotics market with its next-generation, AI-augmented robots. These devices, including the Optimo Regen and Optimo Dex, automate tasks traditionally performed by human workers — specifically, logistics supply in warehouses and therapeutic exercises in clinical settings. Roboligent’s patent-pending force-control technology enables these robots to precisely manipulate products and assist users in a safe and intelligent way.

As Roboligent awaits approval of its FDA application, it is reaching into Asian markets through a partnership with a Singaporean company for robotic rehabilitation. While its team has impressive technical credentials, its early stage of development and limited revenue make its pre-money valuation relatively high. In addition, the business is still awaiting its proof-of-product and will likely struggle to break into warehouse logistics markets that are already getting competitive. Up-front funding is likely to be a further challenge, as the business seeks to scale its manufacturing in the future. Still, the robotics market is growing at a rapid enough pace to have plenty of room for ambitious startups. If its force-control technology works as the business presumes it will, it could have all manner of applications for robotics. Therefore, Roboligent is a Neutral Deal.

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Analysis written by Benjamin Potts.