According to The VC, a venture capital analysis platform, investment in the robotics sector for domestic unlisted startups and small businesses reached 346.4 billion won from January to date. This marks a 552.4% increase compared to 53.1 billion won during the same period last year. However, the number of investment deals decreased from 27 to 23. Despite fewer companies receiving funding, large investment rounds suggest that capital is concentrating on a select few promising firms.
During the same period, total startup investment surged from 2.0713 trillion won to 6.655 trillion won, a 221.3% increase. The growth rate in robotics investment significantly outpaces the overall market expansion, indicating heightened interest from investors.
The trend of focusing on AI and robotics is also evident in the early investment market. According to The VC's investment statistics for May, 41% of seed-stage investments last month were concentrated in AI and robotics. Cumulatively, from January to May, 43% of the 148 seed investments were directed towards AI and robotics companies.
Since the generative AI boom began in earnest in 2023, investments have primarily focused on applications and software. Starting last year, infrastructure companies like GPUs and data centers gained attention, but interest is now shifting towards physical AI.
Monthly investment examples further illustrate the enthusiasm for physical AI. In February, autonomous driving and vehicle AI semiconductor design firm Boss Semiconductor raised 87 billion won in a Series A funding round, an unusually large amount for early-stage investment. In April, humanoid robot startup Holiday Robotics secured 150 billion won in a Series A round. Industry experts interpret these cases as a reflection of growing investment expectations in the physical AI and robotics sectors.
Physical AI refers to AI technology that recognizes physical environments through sensors, makes autonomous decisions, and interacts directly with the real world via robots, autonomous vehicles, and industrial equipment. Unlike generative AI, which focuses on information generation, physical AI is distinguished by its ability to perform actions in real-world spaces.
Industry insiders believe that the movements of global tech companies are also influencing investment sentiment. Notably, Jensen Huang, CEO of NVIDIA, who is visiting South Korea on June 4, has emphasized robotics and physical AI as next-generation growth drivers, further increasing interest in these industries.
Jung Hyun-jun, a researcher at the Korea Information Society Development Institute (KISDI), stated, "While investment in AI infrastructure remains active, there is now a growing focus on practical usability and commercialization potential. As interest shifts towards the value AI can create in the real world, robotics and physical AI are gaining attention." He added, "As services addressing real-world issues, such as household assistance and manufacturing automation, increase, the spread of related technologies is expected to accelerate."
However, there are concerns that the intensifying concentration of investments may make it more challenging for early-stage startups outside the AI and robotics sectors to secure funding.
* This article has been translated by AI.
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