Roman Hölzl, Constantin Dresel and Paul Maroldt (from left) founded Robco. The start-up develops modular robots for smaller industrial companies, for which it is only worth using the machines if they can be quickly reprogrammed for different tasks.
(Photo: Robco)
Munich In view of the shortage of skilled workers and increased energy prices, interest in efficient robotic solutions is growing among medium-sized companies. “Since the summer we have felt a clear push again,” says Roman Hölzl, CEO and co-founder of Robco. The demand is currently significantly higher than the capacities.
The start-up has developed a construction kit with robot modules that can be flexibly combined with one another. Robco is now using the increased interest for the next larger round of financing. Led by Sequoia Capital, investors are putting 13 million euros in fresh capital into the company.
Robco describes its solution as a kind of “Lego kit for industrial robots”. The core is self-developed software to which hardware modules can be docked. Automation solutions should be able to be put into operation within a day. Examples include palletizing or simple pick & place tasks, i.e. lifting and repositioning objects.
Rental service lowers the barrier to entry for robotics investments
According to estimates by the German Robotics Association (DRV), the persistent shortage of skilled workers in particular is driving the demand for automation in medium-sized companies. This factor also plays a role in solving problems with interrupted supply chains in the corona pandemic and in times of the Ukraine war.
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In some cases, customers are demanding that suppliers relocate production to Europe: “Robotics and automation can and will benefit from this.” Politicians in Germany must, however, actively support the development in order to prevent migration and to support so-called reshoring. In the USA, for example, investments in robotics are specifically encouraged, and up to a million dollars can be written off completely.
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According to the DRV, many medium-sized companies are reluctant to make even larger investment decisions because of the uncertain situation. According to Hölzl, this is one of the reasons why “Robotic-as-a-Service” rental solutions are in great demand at Robco. The companies here usually pay a low four-digit amount for turnkey robotic construction kits.
So far, heavy industrial robots, which have been used primarily in the production lines of the automotive industry for decades, have dominated the industry. The electronics industry is now an important buyer of often somewhat smaller machines. Up to now, the machines have often been too expensive and difficult to program for medium-sized companies.
However, the pressure to make production more efficient is now also increasing in smaller companies. Nor can you simply move production abroad where labor costs are cheaper.
Frank Thelen sees Robco as a leader in medium-sized companies
Automation is the only way for small and medium-sized companies “to position themselves for the future in the long term and to react to the shortage of workers and the price war between larger producers,” says Frank Thelen. His venture capital fund Freigeist led Robco’s early seed round. The Munich start-up has “the potential to become the leading provider of automation solutions for medium-sized companies”.
But there is a lot of competition. Corporations like ABB and Kuka are increasingly offering cheaper collaborative robots that are easier to operate. There are also specialists such as Coboworx, which offers medium-sized companies ready-to-use robot cells. The programming of palletizing tasks, for example, is easily possible using an app. Among others, the private equity company Picus Capital, financed by Alexander Samwer, is invested in the company.
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Robco founder Hölzl sees his company in a good position. The market for system solutions is still very fragmented. “We aim to create a globally active company from Europe that dominates the market niche.”
According to industry estimates, Robco, which only started in 2020, is currently generating sales in the seven-digit range with a strong upward trend. The company combines the software solution with its own hardware. The data that is obtained when the machine is used is an important asset, says Hölzl. This is the main reason why it makes sense to offer machines and software from a single source.
Investor Sequoia sees great potential in medium-sized companies
Robco managed the financing round in a difficult environment. In view of the turnaround in interest rates, the war in Ukraine and global economic concerns, investors have become significantly more cautious.
According to calculations by the data service provider Refinitiv for the Handelsblatt, venture capitalists invested around eight billion euros in German start-ups from January to November. In the entire previous year, the sum was almost twice as high.
The new investor Sequoia also sees great potential. “Current solutions are simply too expensive, complex and inflexible,” said partner Luciana Lixandru. That is why less than ten percent of small and medium-sized companies use an automation solution. The majority of the market potential is far from being exhausted.
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