Physical AI startups

Robotics and industrial AI startups keep raising capital

Construction robotics, waste-to-energy vision systems, and industrial AI software all attracted new rounds in recent months as physical AI investment kept climbing.

By Elliot Marsh, Startups and markets correspondent3 min read
Technicians assembling a Japanese robotic arm in a golden-lit space station processing facility
Technicians work on the Japanese remote manipulator system inside a space station processing facility, illustrating robotic assembly work. Photograph: NASA/George Shelton/Wikimedia Commons (public domain)

As of late September 2026, robotics and industrial AI startups continue to draw venture funding across construction, manufacturing, waste-to-energy, and industrial software. Crunchbase News reported that global venture funding in physical AI reached $47.4 billion in the first half of 2026, nearly four times the $12 billion raised in the second half of 2025 and up 80% from the first half of 2025. The category spans robotics, self-driving vehicles, space systems, drones, factory automation, and sensor hardware.

Construction tech rounds

Among construction technology companies, several rounds closed in June and July, according to Construction Dive. On June 17, SubBase, a construction materials procurement platform, said it raised $7 million in a Series A led by FINTOP. The company plans to use the funds for product and engineering growth and an AI layer that learns from pricing, supplier performance, and delivery data.

On July 14, TerraFirma announced a $115 million raise, including a $100 million Series A led by Kleiner Perkins. The Texas company, led by former SpaceX engineers, builds semi-autonomous heavy machinery such as excavators and dozers, plus preconstruction software and a remote command-and-control center.

On July 15, Monumental, an Amsterdam-based robotics company, raised $32 million in a Series B led by Khosla Ventures. Its Atrium software controls bricklaying robots, and customers hire Monumental as a subcontractor paid for finished walls.

On July 21, Gritt launched with $32.4 million in pre-seed and Series A funding; the $26 million Series A was led by Obvious Ventures. Gritt adds robotic arms and AI controls to machines already in use, including skid steers and forklifts.

On July 22, Arrakis announced $37.5 million in funding as it left stealth: a $30 million Series A led by Blossom Capital and a $7.5 million seed led by Accel. The London and Paris company sends forward-deployed AI engineers and sells an enterprise AI platform for industrial operations.

On July 28, Buildforce, a tech-enabled staffing platform for electricians, raised $10 million in a Series A led by Saepio Capital. As of that date, its electricians had logged over 2 million hours on more than 2,000 commercial construction projects.

Broader investor interest

Business Insider published its inaugural list of the 25 most promising robotics startups, based on nominations from 14 investors. The publication cited PitchBook data showing physical AI startups pulled in $16.3 billion over 492 deals in 2026's first quarter, a record. Business Insider also noted that some robotics technology remains unproven, citing researchers who called humanoids a "fantasy product" with little near-term viability.

European factory automation

Indian Startup News reported that Jaipur Robotics, a Swiss startup, raised €4.3 million (about Rs 47.2 crore) in seed funding with EquityPitcher Ventures and High-Tech Gründerfonds as the lead investors. Jaipur Robotics develops computer vision for waste-to-energy plants, aiming to detect hazardous objects and reduce unplanned shutdowns. The startup said its systems analyse over five million tonnes of waste annually and cut unplanned shutdowns by more than 80% at individual plants. Co-founder Ermes Zamboni said the round enables the company to "revolutionise entire plant operations".

On September 16, Embodied AI, a Lausanne-based robotics startup, launched with an undisclosed first financing round led by Faber VC. It plans to deploy robots for electronics manufacturing, kitting, cable handling, logistics, and automotive assembly, using a human-in-the-loop model where remote operators intervene and improve the AI. CEO Francesco Stella said the company is starting with practical industrial tasks rather than hype.

On September 30, Paris-based Inbolt raised €11 million led by Shift4Good, with participation from Bridges Climate Transition Partners, BNP Paribas Développement, and Ora Global, bringing total funding to €30 million. Inbolt sells 3D vision and AI software that works with existing robots from Universal Robots, FANUC, Yaskawa, Comau, KUKA, and ABB. The company is deployed on more than 200 robots in over 100 factories across three continents, with clients including Bosch, Ford, Stellantis, and Toyota.

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Elliot Marsh covers startups, IPO filings and the money behind them for Venturist. Elliot writes from SEC filings, company announcements and published reporting.

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