F1’s Rosberg backs AI startup making ‘stupid’ robots smart
SEREACT, a German startup that makes artificial intelligence (AI) software for robots, has raised €25 million ($25.7 million) to find ways to apply its technology to areas beyond logistics and manufacturing.
The round was led by early Spotify-backer Creandum AB, and includes angel investment from former Formula 1 World Champion Nico Rosberg and ex-DeepMind Technologies Ltd.’s Mehdi Ghissassi. Investors Point Nine Capital, Air Street Capital LLP and Helsing GmbH’s Torsten Reil also participated.
The Stuttgart, Germany-based company, whose name derives from “sense, reason, act,” develops software that allows industrial robots to perform tasks they haven’t been explicitly trained on. Traditionally, robots are hard-coded, allowing them to repeat specific tasks but not adapt to new activities, objects and environments.
“We want to make these stupid pieces of metal an intelligent tool,” Ralf Gulde, chief executive officer and co-founder of Sereact said in an interview.
Robotics startups have been gaining investor traction. German humanoid robot maker Neura Robotics raised €120 million last week, and Sequoia-backed RobCo raised €39 million last year. While many robotics companies are focusing on capital-intensive hardware development, Sereact is targeting the robotics software-as-a-service market.
Sereact’s software already powers machines that pick and deliver components for automakers like BMW AG and Daimler Truck Holding AG.
The company says its technology can be applied on any off-the-shelf robot, making them functional within hours. One application could be sorting through returned packages, which often go to landfill because it’s costly for retailers to process and resell them.
Mr. Rosberg, who counts SpaceX and Lyft among his previous investments, said in an interview that he wrote cold messages to the team on LinkedIn and had to fight for a spot in the fundraise. “I had to ask my friends at Creandum and Point Nine to give me references,” he said. — Bloomberg News
