Formic Robotics Projects Over 100% Net IRR for U.S. Factories, Advancing Reindustrialization Through Accessible Automation

Robotics-as-a-Service (RaaS) provider Formic is positioned to significantly impact American manufacturing, with its robotic solutions demonstrating "> 100%+ net IRR activity for American factories," according to a recent tweet by Y Combinator CEO Garry Tan. The company aims to "> reindustrialize America with practical robotics," addressing critical needs within the sector. Formic's innovative model removes the traditional capital expenditure barrier, allowing manufacturers to adopt automation with a pay-for-productivity approach.

The urgency for such solutions is underscored by persistent labor shortages and a low adoption rate of automation in U.S. factories; an MIT report indicates only 10% of American manufacturers currently leverage robotics. Industry projections suggest the U.S. manufacturing sector could face a deficit of 1.9 million jobs by 2033. Formic directly tackles these challenges by providing comprehensive robotic systems that include 24/7 technical support and 100% maintenance coverage.

Formic's full-service rental program has already achieved significant milestones, surpassing 200,000 production hours by January 2025 with an impressive 99.8% uptime. This translates to the equivalent of five months of human labor delivered daily by its robot fleet. Customers like Land O’Frost have reported substantial benefits, including a 20% saving on labor-related operational expenses, enhanced workplace safety, and improved employee satisfaction through upskilling.

To further its mission, Formic recently secured an additional $27.4 million in Series A financing, bringing its total Series A funding to over $52 million. This investment, led by Blackhorn Ventures with participation by Mitsubishi HC Capital America and others, will enable Formic to expand its fleet, grow its support network, and enhance its AI-driven software for motion planning and predictive maintenance. A joint commercial agreement with Mitsubishi HC Capital America will also facilitate financing for Formic's RaaS model.

Garry Tan, a prominent voice in the startup ecosystem, emphasized the immediate demand for these robotic solutions, stating, "The wild thing is the need for robotics is already here." His endorsement highlights Formic's role in providing accessible, high-return automation that not only boosts productivity but also contributes to the long-term resilience and growth of the U.S. manufacturing industry. Formic CEO Saman Farid noted that approximately 75% of the company's customers are integrating robotics for the first time.