Bessemer's Robotics Predictions #6: Robotics Funding Will Grow Dramatically

Why It Matters

Bessemer’s view signals a strategic shift: investors who increase robotics allocations can capture outsized returns as automation tackles the far larger physical‑labor market.

Key Takeaways

• Robotics fundraising announcements appear weekly, but overall capital remains low.
• Only 42 U.S. robotics firms raised >$30M in five years.
• Software funding outpaces robotics by 18 times in the same period.
• Global physical labor spend is 30× larger than software spend.
• Bessemer argues robotics funding should dramatically increase, not shrink.

Summary

The video outlines Bessemer’s sixth robotics forecast, asserting that the surge of weekly fundraising news does not signal a bubble but rather highlights a chronic under‑investment in the sector. Jason, the presenter, emphasizes that despite frequent headlines, capital flowing into robotics remains modest compared with its potential.

Data points reinforce the argument: over the past five years only 42 U.S. robotics companies secured more than $30 million each, while software firms enjoyed an 18‑fold funding advantage. Moreover, global spending on physical labor dwarfs software expenditures by a factor of thirty, suggesting a massive market opportunity that is currently under‑funded.

Jason punctuates his analysis with memorable lines—“What the clanker is going on?” and “there’s not enough money going into robotics.” These quotes capture the industry’s buzz and the analyst’s conviction that the capital gap, not a speculative bubble, defines the landscape.

The implication for investors and corporate strategists is clear: allocating substantially more capital to robotics could unlock efficiencies in the vast labor‑intensive economy, positioning the sector for exponential growth rather than modest incremental gains.

Original Description

Continuing our 2026 robotics predictions series.

Jason Scheller, Investor at Bessemer, breaks down why robotics funding will grow dramatically—physical labor is a 30x larger market than software globally, but only 42 US robotics companies have raised over $30M in the last five years compared to 745 in software. That gap won't last.

Follow Bessemer Venture Partners so you don't miss the rest of the series.

To learn more → https://www.bvp.com/atlas/intelligent-robotics-the-new-era-of-physical-ai

#robotics #ai #technology #physicalai