Hardware development costs
Budget for prototypes, engineering builds, testing, certification, tooling and minimum order quantities for components. Costs usually fall per unit at volume, but only after upfront spend. Investors want to see these stages costed separately.
Funding the fleet
With robots-as-a-service, each robot deployed is a cost upfront recovered over months. Early on this is paid from equity. Once robots show reliable uptime and customer contracts, equipment finance or leasing can fund additional units against their payments.
- Lenders look at contract length and customer strength.
- Residual value of the robot affects pricing.
- Maintenance obligations must be clear in contracts.
Supply chain and working capital
Component lead times and deposits tie up cash. Include working capital in your ask and explain how you manage single-source parts.
Terms to understand
Robotics investors often tranche money against engineering milestones. Make milestones achievable and check whether investors would restrict equipment finance that could reduce future dilution.
Robotics costs and the best-matched funding
| Cost | Best-matched funding | Note |
|---|---|---|
| Research and prototypes | Grants, angels, pre-seed | Highest risk |
| Pilots and early units | Seed equity | Prove uptime and savings |
| Production tooling | Series A equity | Lowers unit cost |
| Deployed fleet | Equipment finance, leasing | Once returns are proven |
Questions to prepare before you pitch
- Would this round restrict us from equipment finance later?
- How are engineering milestones for each tranche defined?
- Does the ask include component deposits and working capital?
How KJ Enterprises evaluates robotics businesses
KJ Enterprises considers robotics businesses that separate development costs from fleet costs and have a credible plan to finance deployments efficiently.
If that describes your company, you can apply for investment. Related reading: the complete funding guide and the step-by-step how-to and climate tech costs and terms.