Mission Aligned #8: Automation for All with Formic
Revolutionizing Manufacturing with Robots-as-a-Service
Automation often feels out of reach for small and medium-sized businesses, and Formic has emerged as a game-changing solution. Founded in 2020, this Chicago-based company is on a mission to democratize automation, empowering manufacturers to compete on a global scale. With its Robots-as-a-Service (RaaS) model, Formic is not just selling technology—it’s transforming how businesses leverage automation: no CapEx, pay by the month for the equipment, 24/7 technical support, 100% maintenance coverage.
Breaking Barriers to Automation
For decades, automation has been a privilege reserved for large enterprises with deep pockets and technical expertise. High upfront costs, complex integration requirements, and the need for in-house specialists have kept small and medium-sized manufacturers on the sidelines.
Formic flips this paradigm on its head with a simple, cost-effective promise: pay only for productivity. By shouldering the financial and technical burdens of automation, Formic enables manufacturers to deploy cutting-edge robotic systems without significant upfront investments. From palletizing to packaging, their turnkey solutions allow businesses to focus on what they do best—producing quality goods—while Formic handles the automation.
The Formic Difference
At the core of Formic’s value proposition is its full-service approach. Unlike traditional automation providers, Formic doesn’t just deliver robots and leave customers to figure it out. Instead, they manage the entire lifecycle of robotic systems, including:
Design and Deployment: Tailored automation solutions for tasks like palletizing, packing, and material handling.
Maintenance and Support: 24/7 monitoring and guaranteed uptime, ensuring robots deliver consistent performance.
Financing: A pay-as-you-go model where customers are charged based on output, eliminating the risk of underutilized investments.
This comprehensive service model has resonated with manufacturers across industries, from food and beverage to pharmaceuticals. In just a few years, Formic’s robotic fleet has logged over 200,000 production hours, delivering the equivalent of five months of human labor every business day with an impressive 99.8% uptime.
Fueling Growth with Strategic Investments
The company recently closed a $27.4 million Series A funding round, led by Blackhorn Ventures and joined by a consortium of investors, including Mitsubishi HC Capital America, NEC, and Initialized Capital. This brings their total funding to over $52 million since 2022.
The new capital is earmarked for expanding Formic’s equipment fleet, enhancing their software capabilities, and growing their network of support experts across the United States. These investments will enable Formic to serve more manufacturers while maintaining the high standards of service that have become their hallmark.
Formic’s mission goes beyond selling robots—it’s about creating opportunities for manufacturers to thrive in an increasingly competitive world. Their commitment to accessibility, reliability, and innovation makes them a trusted partner for businesses looking to embrace automation without the headaches.
With 200,000 robot usage hours achieved, a growing fleet of automation solutions, and the unwavering trust of their customers, Formic is positioned as a transformative force in the robotics industry.
I am an investor in Formic Technologies Inc. with Alumni Ventures. This post reflects my personal views and analysis, not those of Formic or its management. For more insights on mission-aligned companies, subscribe to this newsletter.