iRobot, a once-beloved robotics company, recently filed for Chapter 11 bankruptcy, signaling the end of an era for the Roomba maker. With over 50 million robots sold since its launch in 2002, iRobot had faced numerous challenges and near-death experiences over its 35-year history. However, founder Colin Angle attributes the company’s downfall to what he calls “avoidable” regulatory opposition.
The collapse of iRobot came after Amazon’s decision to scrap its $1.7 billion acquisition deal following 18 months of investigation by the FTC and European regulators. In a candid conversation, Angle reflects on the frustrating process, the message it sends to entrepreneurs, and his determination to embark on a new venture in consumer robotics.
Angle criticizes the regulators for blocking the acquisition, stating that the goal of protecting consumer choice and innovation was overlooked. He argues that the partnership between iRobot and Amazon aimed to create more innovation and choice in a dynamic marketplace, making the acquisition a no-brainer. However, the lengthy investigation process hindered the company’s operations and ultimately led to the deal being rejected.
Describing the 18-month process as indescribable in terms of the resources invested, Angle highlights the immense effort put into fulfilling the regulatory requirements. He expresses disappointment in the regulators’ attitude towards the acquisition, citing their celebration of blocked deals as trophies, which he finds unsettling as an entrepreneur.
The experience with iRobot has influenced Angle’s outlook on exit strategies and commercialization for his new venture. He believes that the chilling effect of regulatory opposition on acquisitions could impact the willingness to invest, the valuation of deals, and the rate of new company formation. While the FTC serves as a safeguard against abuses, Angle emphasizes the importance of striking a balance to prevent negative repercussions on the country’s innovation ecosystem.
Reflecting on iRobot’s journey, Angle recalls the company’s early days when a group of people in an academic lab sought to fulfill the promise of robots. The journey to creating the Roomba took 12 years, highlighting the perseverance and determination that ultimately led to the company’s success.
In conclusion, the downfall of iRobot serves as a cautionary tale about the impact of regulatory opposition on innovation and entrepreneurship. Angle’s experience underscores the need for a balance between regulatory oversight and fostering a conducive environment for startups to thrive. If not us, who? If not now, when? These questions have guided many entrepreneurs, including the co-founders of a company led by professor Rod Brooks. Their mission was clear: to build innovative products, have fun, make money, and ultimately change the world. And they did just that.
Their journey started with pioneering AI technology that embedded machine intelligence in low-cost robotics. From failed moon missions to successful Mars expeditions, their technology made its mark in various fields, including disaster relief and combat missions. They saved lives, enabled shutdowns of reactors, and paved the way for groundbreaking advancements.
But it wasn’t until year 12 that they stumbled upon the idea for the Roomba. With a small budget and a tight timeline, they took a chance on creating a robot vacuum. The media latched onto the story, and soon enough, they were selling thousands of robots. However, success came with its own set of challenges, including overwhelming demand and marketing mishaps.
Despite facing setbacks, they persevered and found unexpected success when Pepsi featured their product in a commercial. This led to a surge in sales and a newfound understanding of marketing. They learned to adapt, innovate, and stay true to their vision, even in the face of fierce competition.
Looking back on their journey, they share valuable lessons for aspiring robotics entrepreneurs. They emphasize the importance of understanding the market, delivering value, and staying ahead of the curve. Technology may be ever-evolving, but it’s the business plans that truly drive success in the world of robotics.
So, to those who dare to dream big and take risks, remember: if not us, who? If not now, when? The time is now to make your mark on the world of robotics.
When iRobot was founded, there was a common misconception that robots had to resemble humans to be effective, such as humanoid robots pushing vacuum cleaners. However, with the introduction of Roomba, a non-humanoid vacuuming robot, perceptions began to shift. Despite not fitting the traditional image of a robot, Roomba was significantly more cost-effective and efficient in its task.
Entrepreneurship in robotics requires moving past the allure of building something and focusing on the practical application of the technology. It’s important to deeply understand the needs of consumers and the specific problem you aim to solve. Robotics is a complex and costly field that demands dedication and a clear vision to succeed.
You mentioned you’ve founded a new company. What can you tell me about it?
While details about our new venture are currently confidential, I can share that it’s geared towards the consumer market. Our focus is on developing robots that can interact with people in a way that addresses unmet needs. We aim to imbue our robots with emotional intelligence, albeit not at a human level, to enhance their utility in health and wellness applications.
I am incredibly enthusiastic about this project and the opportunity to leverage this advanced toolkit to create robots that fulfill the promises we’ve long awaited. My passion for robotics has remained steadfast since my early days as a college student, and now, after three decades of refining floor care robots, I am eager to embark on this new chapter.
For more insights from this interview with Angle, including his perspective on the feasibility of humanoid robots, tune in to TechCrunch’s StrictlyVC Download podcast. New episodes are released every Tuesday, and the full conversation will be available shortly.
