After years of research and development, Reach Robotics has closed a $7.5 million Series A, co-led by Korea Investment Partners (KiP) and IGlobe, to bring its augmented reality bots to market in a big way. The Bristol-based startup is looking to expand into the U.S., and the team is exploring opportunities for growth into other European and Asian markets.
Reach Robotics’ first product, MekaMon, launched last fall. Today’s round comes after the company produced and sold an initial run of 500 of its four-legged, crab-like, bots. MekaMon fits into an emerging category of smartphone-enabled augmented reality toys like Anki.
Silas Adekunle, CEO of Reach Robotics, tells me the influx of capital will be used to make some strategic hires and increase brand recognition through marketing. This is the first time the startup has announced a funding round. Adekunle tells me his experience raising capital wasn’t easy; as they say, hardware is hard.
“It was hard to pitch in our early days because people didn’t believe,” explained Adekunle.
MekaMon sits somewhere between toy and full-fledged robot. Unlike the radio-controlled RadioShack robots of yesteryear, MekaMon costs a hefty $329. At first glance this can be hard to swallow, but Adekunle remains adamant that he is building a platform and not a line of toys — think PS4 instead of an expensive, single-use robot collecting dust on a shelf.
Outside of retail sales, another avenue for the company to make money is through partnerships within the entertainment industry. Adekunle says that Reach would never go out of its way to deliver a specific product for a client, but he always keeps an eye out for overlap where a partnership could occur with minimal operational changes.
“People are taken aback that something could be this realistic,” asserts Adekunle. “If you strip back the product and lose that, then you don’t have an innovative company.”
Because Reach is selling software-enabled hardware, it…