Summary of Key Points
The recent funding pace in the embodied robotics sector has reached an “unprecedented” level: what used to be annual funding cycles have now been compressed to monthly, daily, or even weekly intervals. The boundaries between different funding rounds have become blurred, with terms like “Angel++” and “A++” becoming the norm. Capital is concentrating on a handful of leading companies, favoring those with founders from top universities or senior executives from large corporations, as well as those possessing advanced algorithmic capabilities (the “brains of the robots”). The entry of industrial capital and state-owned funds has further driven up valuations and accelerated the pace of development. However, this also raises concerns: many companies are receiving high valuations before they have mature products, and whether they can sustain these valuations with actual performance will soon be tested by Yushu Technology, the first company in this sector to list on the Sci-Tech Innovation Board.
I. Funding Pace is “Out of the Ordinary”: Three Types of Rapid Financing Methods
The speed at which companies in the embodied robotics sector are raising funds has surpassed what most people can imagine, and it can be roughly categorized into three types:
- Quick Start: Companies are sought after by investors right after they are established. For example, Delta Intelligence was founded in January this year and raised six rounds of funding within half a year (one round per month on average). Another company, Kunlunxing, was registered in January, received its angel round 12 days later, its A-round 15 days after that, and completed four rounds of financing in five months—each round occurring within days. Some companies even become “unicorns” without even going through a formal registration process.
- Capital Sprint Within One Year: The initial phase is relatively stable, followed by a sudden acceleration. Qianxun Intelligence was founded in 2024 and raised four rounds of funding between February and June this year (a total of 4.5 billion yuan). Zhifang Square, founded in 2023, completed twelve rounds of financing in just two years (2025-2026), with its valuation exceeding 20 billion yuan. Once these companies start to accelerate, they seem unstoppable, with each round laying the groundwork for the next.
- High-Starting Point from the Beginning: The first round of funding is already at an extraordinary level. For instance, Shizhihang was founded in February and received a $120 million angel round 50 days after its establishment (setting a new record for the sector), while Moqi Intelligence raised 900 million yuan in its angel round just four months later, surpassing the previous records set by other companies in their B- or C-rounds.
II. Disrupted Round Sequences: From “Stage Markers” to “Queue Numbers”
In the past, funding rounds had clear roles: the angel round focused on evaluating the team and the direction of the project, while the Pre-A round was used to develop a prototype; the A-round confirmed the business model. This system no longer applies:
The names of the funding rounds no longer reflect the actual development stage of the company but merely indicate “another round after the previous one.” For example, an “Angel++ round” means two additional rounds after the initial angel round, and an “A++ round” means two more rounds after the A-round. Investors are eager to invest without waiting for the company to achieve the next milestone (such as completing a prototype); they prefer to secure their share by investing in shorter intervals.
III. Why is Capital So Eager? Three Drivers: Anxiety, Consensus, and Long-Term Investment
The rapid funding pace is not accidental; there are three main reasons behind it:
- FOMO (Fear of Missing Out): There are too few good projects, so dozens of institutions compete for a few. What used to take months of research can now be completed in weeks or even days. If investors don’t act quickly, the valuation could double by the next round, potentially leaving them out of the competition.
- **Industry Consensus on “Algorithms”: Hardware has matured (with reduced costs and increased localization), making the mechanical structures of robots more similar. Capital now places more emphasis on the algorithms that enable robots to perceive their environment, make decisions, and perform tasks effectively. Investors believe that a strong algorithm can compensate for mediocre hardware.
- Entry of Industrial Capital: Industry investors such as Inovance Capital, China Mobile, and Lenovo Venture Capital, along with state-owned funds, are entering the market. Their investments aim at shaping the industry ecosystem for the next decade, providing long-term support and driving up valuations.
IV. Concerns Behind the Exuberance: Can Valuations Be Sustained by Actual Products?
While the funding pace can accelerate, products and technologies cannot develop at the same speed:
Many companies have raised significant amounts of funding within just a few months without even having a product. Investors are now focusing on the company’s ability to deliver products in bulk and attract repeat customers. If the technology fails to keep up, high valuations may prove to be unfounded.
Yushu Technology is about to list on the Sci-Tech Innovation Board, serving as a benchmark for the sector’s public market performance. The current valuation frenzy in the primary market will soon be scrutinized by the secondary market. If Yushu’s performance falls short of expectations, other high-valued startups may face valuations that come down or even financial pressures.
In short, while capital is moving fast, we need to wait and see how far the products and technologies have progressed. Only when the “tide recedes” will it become clear which companies are truly capable of standing out.
Conclusion
The surge in funding for embodied robotics reflects capital’s bet on future technology, but it also carries the risk of bubbles. For outsiders, seeing rapid financing should not merely inspire envy; we need to ask: Does this company have something tangible? Can they turn money into useful robots? After all, what truly determines a company’s success is whether its products can solve real problems.
(End of Article)