Last month, Michael Tefula and I were sitting at a hotel bar in Copenhagen when a robot waiter wheeled past us and delivered food to a table. Nobody blinked. Robots are everywhere.

For years, robots have helped with repetitive tasks like mowing lawns, cleaning homes, and supporting work that, while often physically demanding, remains an essential part of many people’s daily lives. But now, AI is beginning to unlock new capabilities, taking the value of robotics to new levels and driving the field towards increasingly advanced, intelligent, systems. Tools like computer vision, reinforcement and learning, and foundational models like RT-2 and SORA mean robots can ‘think’ for themselves, moving beyond simply carrying out one programmed function. 

This coming together of AI and robotics (like crypto and AI, or smart phones and GPS) is a moment in time and VCs are taking note. Since 2018, VCs have invested over $90B in robotics start-ups, representing 10 percent of overall technology investments. In 2024 alone, start-ups in the sector raised roughly $6.4B. This figure is expected to reach $38B by 2035. 

The future of robotics has the potential to transform everything from how we build our homes to the way we deliver patient care. This vast array of applications offers enormous opportunities for founders and VCs alike. Here are some specific areas that I’ve got my eye on:

Letting robots do the heavy lifting

The logistics and warehouse automation industry has been enjoying huge productivity boosts thanks to robotics. By completing the more painstaking, dangerous, and monotonous tasks, robots can take humans out of harm’s way and allow employees to take on more interesting and value-added roles. A great example of this in action is Phinxt Robotics, one of Ada’s own investments. Their platform manages and coordinates autonomous robot fleets (robot agnostic) to assist workers, achieving a 400% increase in throughput with existing staff and a 50% reduction in error rates.

Another area I’m monitoring is construction. Here, AUAR Construction Robotics has caught my eye with their “micro-factories”. AUAR’s robots turn renewable timber sheets into modular building blocks, which are then easily transported to site and assembled locally. The decentralised construction process reduces carbon footprint and its low cost could help answer the UK’s urgent need for affordable housing.

This tech is also showing the potential to make the industry greener. Q-Bot’s robots, for example, can retrofit underfloor insulation to reduce heat loss and improve energy efficiency. 

Finding fertile ground in agriculture

In AgriTech, robots are breaking ground by making food production more sustainable. From monitoring soil and crop health to precision crop spraying and autonomous harvesting, robots could feed the globe while helping to heal the planet. UK startups like Small Robot Co are making exciting moves here. Their farming robots (quintessentially named Tom, Dick, and Harry) can plant, monitor, and treat crops with minimal waste. Extremely high-resolution crop images of 0.28mm per pixel allow farmers to detect disease outbreaks early and opt for targeted treatment over blanket chemical application, reducing herbicide usage by 90%.

Lending a helping hand in healthcare 

Perhaps one of the most important sectors being transformed by robotics is healthcare. With over 6.2 million patients currently waiting for treatment in England alone, our NHS is crying out for innovative solutions to boost efficiency. From surgical robots to automated pharmacy, robotics is helping to bridge the healthcare staffing gap and improve access to treatment. 

With the help of CMR Surgical’s Versius robot, Milton Keynes University Hospital (MKUH) saved 450 bed-days in just one year. The portable surgical robot has treated over 800 patients, undertaking complex procedures from hysterectomies to abdominal wall reconstructions. And its minimally invasive approach means patients can go home and return to normal activity faster.

Swift robotics is another exciting startup driving change in this space. Their impressive robots can autonomously monitor and deliver medicines, medical instruments, and more.

Funding the robotic revolution

The robotics industry could hold the key to a more sustainable, safe, and healthy future. But while the future looks bright, high initial capital requirements have the potential to put some investors off. UK Universities are already making huge progress in robotics R&D, from Birmingham’s national robotics research hub to tiny magnetic robots taking virtual biopsies in Leeds. Also doing great work are UWE’s Bristol Robotics Lab and the National Robotorium in Edinburgh. Our challenge as VCs is to have the commitment and the belief to take this work from lab to market, turning these ‘projects’ into scalable solutions.

Reshaping the workforce

As AI continues to evolve, so too does its impact on the workforce. The IMF estimates that 40% of global jobs (and as many as 60% in advanced economies) will be affected by AI. For some, this will mean productivity gains and new opportunities. For others, it could mean lower demand for human labour, reduced wages, and increased inequality. 

Automation isn’t a new concept. The first modern robot, patented in the 1950s, helped transport hot die castings on an assembly line, protecting workers from toxic fumes and serious injury. Just as robots once took on dangerous, physical tasks, AI is now expanding that role, automating increasingly complex work and reshaping the workforce.

At Ada, we believe it’s not a question of if this transformation happens, but how we respond. Our Framework for investing in AI-first companies recognises these risks, and our Economic Empowerment theme guides us to invest in companies helping people adapt. A great example of this in our portfolio is Greenworkx - they’re doing fantastic work in upskilling and reskilling people towards Green Jobs for the climate transition. 

We’re constantly reassessing the impact of these shifts and refining our approach, with Michael Tefula, our Head of Product, currently working on version two of our framework to capture everything we've learned over the past year and update our strategy.

The problems we face as a society require urgent solutions, so there’s no time to hang around. That’s why we at Ada are investing in pre seed startups at the pre or early traction stage, to support the revolutionary ideas (and ideators) that will create positive change. 

So, if you’re building something exciting in robotics - even at formation stage - we want to hear from you. Get in touch via our application page, and let us know how your tech will drive the robotic revolution.