As an increasingly hot topic in the built world, noa’s investment team unpacks our robotics thesis, breaking down the trends, challenges, and opportunities in the sector.
Robots have been around for decades, but until recently, their applications were largely confined to highly controlled environments - manufacturing lines, warehouses, and mining sites. Outside of these domains, robotics adoption remained slow due to high costs, limited dexterity, and challenges in navigating dynamic real-world environments. However, a confluence of advancements in hardware and software is changing this, making robots more accessible, flexible, and capable than ever before. Here, we take a closer look at what those are, and what they mean for the VCs hunting for outsized returns in this space.
The hardware revolution: smaller, cheaper, more capable
The past decade has seen a dramatic reduction in the cost of key robotic components. Motors, batteries, actuators, LiDAR, cameras, and microcontrollers have all become cheaper and more powerful. This has enabled the emergence of versatile robotic platforms, from quadrupeds and drones to increasingly sophisticated humanoid robots.
At the same time, improvements in high-energy-density batteries and lightweight materials have enhanced mobility and operational longevity. These innovations have transformed robotics from rigid, pre-programmed machines into agile systems that can navigate diverse environments, manipulate objects with precision, and interact with humans in meaningful ways.
The software breakthrough: AI and spatial intelligence
Equally important as hardware innovation is the rapid evolution of AI. The past two years have witnessed the rise of multimodal AI models that can process and understand text, images, video, sensor data, and 3D spatial information. These models represent the first true step towards "spatial intelligence," allowing robots to understand their environment, recognise objects in context, and make decisions accordingly.
While self-driving car research has contributed significantly to these capabilities, the missing piece remains a robust proprioceptive model - a robot’s ability to understand its own position in space and manipulate physical objects accordingly. Training AI for real-world robotics remains difficult due to a lack of high-quality datasets, but this challenge is being addressed through synthetic data generation. Companies are leveraging GPU-powered virtual environments with advanced physics simulations to train robots in digital worlds before deploying them in reality.
The investment boom: a new frontier for venture
With these breakthroughs converging, 2024 was a record-breaking year for venture funding in robotics, and 2025 is set to continue the momentum. More startups than ever are tackling robotics across various industries, from construction to energy infrastructure and logistics. While industry-specific robotics solutions are gaining traction, the real opportunity lies in foundational technologies that support this wave of innovation.
At noa, we see immense opportunity in the enabling layers of robotics rather than specific end-use applications. Our focus is on infrastructure technologies, including robot operating systems, fleet management platforms, foundational AI models, and microcontroller software. These are the critical building blocks that will power the next generation of automation across industries.
The transformation of industrial robotics
Historically, robotics has only been viable in sectors with high production volumes and well-structured workflows, such as automotive manufacturing. However, falling hardware costs and improved software capabilities are now bringing robotics to more complex and dynamic environments. Warehousing and logistics have already embraced robotic automation, and now industries like construction, energy, and infrastructure maintenance are following suit.
The key barrier in these sectors has been the high upfront cost and complexity of deploying autonomous systems. However, with the rise of modular and "robotics-as-a-service" (RaaS) models, businesses can integrate automation without significant capital investment.
The built world opportunity: automating construction and infrastructure
Construction and infrastructure maintenance have long suffered from labour shortages, cost overruns, and inefficiencies. Robotics is poised to change this, and we’ve seen a surge of startups addressing these challenges in novel ways:
- Energy infrastructure robotics: Companies like Cosmic Robotics are developing autonomous systems to streamline the construction of energy infrastructure, improving deployment speed and reducing reliance on manual labour.
- Advanced manufacturing: SAEKI is pioneering robotic manufacturing solutions that enable the production of complex components for construction, unlocking new design possibilities.
- Heavy machinery automation: Gravis is working on automating large-scale construction equipment, increasing efficiency and safety on job sites.
Beyond these specialised applications, mobile robotics platforms are proving invaluable for infrastructure monitoring and maintenance. From highways to powerlines, autonomous systems equipped with sensors and AI can conduct continuous inspections, identifying issues before they become costly failures. The declining costs of industrial robotics make this a practical, scalable solution for asset-intensive industries.
The software layer: making robotics more accessible
Despite these advancements, widespread adoption of robotics requires robust software tools to manage, optimise, and scale deployments. Fleet management platforms that allow operators to control and update robots from different OEMs will be crucial. Additionally, simulation tools - like Claryo’s generative digital twin technology - are helping businesses model and test automation strategies before committing to large-scale rollouts.
The future of robotics in the built world
The rise of robotics in 2025 marks a fundamental shift in how physical industries operate. The combination of affordable hardware, advanced AI, and scalable software solutions is breaking down traditional barriers to automation. As this trend accelerates, the built world will see transformative improvements in productivity, efficiency, and sustainability.
At noa, we’re supporting the infrastructure that underpins this revolution. We believe that the most valuable investments in robotics aren’t just the robots themselves but the enabling technologies that will power the next decade of automation. The future of the built world is autonomous, and we’re here to build it.
