Q&A with Fady Saad
Q&A with Fady Saad
By Fady Saad
Cybernetix Ventures is an early-stage venture capital firm leading the way for investments into robotics, automation, and industrial AI startups. Headquartered in Boston, Cybernetix connects its portfolio to national and global robotics ecosystems, bringing unparalleled expertise to companies poised to make major impacts in large, essential sectors – manufacturing, logistics, construction, healthcare, climate and agriculture. The firm’s portfolio encompasses 20 investments across North America and Europe.
Cybernetix is committed to delivering on three pillars of value: exceptional support for founders, phenomenal returns to LPs, and impactful ecosystem leadership for robotics communities. Cybernetix is led by Fady Saad and Mark Martin, who have 50 years of combined robotics technologies, operations and investing experience, and supported by executives from iRobot, Kiva/Amazon Robotics, Flagship Ventures, Locus Robotics, Tufts University, and Cummings Foundation. The firm pioneered Robotics Invest, an annual summit where top founders, investors, and business leaders in robotics come together to build the next wave of robotics unicorns. Robotics Invest includes two days of insightful knowledge sharing, featuring keynote speeches, dynamic panels, interactive roundtables, and unparalleled networking opportunities.
Fady Saad is the Founder & GP of Cybernetix Ventures and Co-founder of MassRobotics, the first and largest robotics & AI startup escalator in the world. This Q&A discusses Cybernetix Ventures and strategies for driving the next wave of industrial innovation.
Q: How did Cybernetix Ventures start, and what challenges did you see in the venture capital space for robotics companies?
Fady Saad: Cybernetix was launched in 2021 as a response to a noticeable gap in venture capital funding for early-stage robotics companies. What we realized is that VC investments were either heavily skewed toward consumer or enterprise SaaS or tough tech like biotech—robotics didn’t fit neatly into either category. Robotics combines elements of both software and hardware, and many VCs were either unprepared or unwilling to take on this hybrid challenge. This is why we have been advocating for robotics as its own investment class, one that requires a unique set of financial models, milestones, and support structures.
Our focus was to address this gap by investing in early-stage companies, specifically at the pre-seed, seed, and Series A stages. Evaluating early-stage robotics companies can be particularly tricky, especially without revenue to assess. But we believed that by starting from the ground up, in very specific verticals of manufacturing, logistics, construction, and healthcare, and later expanding into agriculture and climate tech, we could build a portfolio of companies ready to scale in sectors that would be the first to embrace robotics solutions.
Q: What are some misconceptions about robotics investments that VCs should understand?
FS: One of the biggest misconceptions is the idea that investing in robotics will play out like investing in software, particularly SaaS. That’s simply not the case. While robotics is no longer as capital intensive as it used to be, the timing of funding rounds is different—it's not uncommon to see multiple Series A rounds. The sales cycle for robotics, especially in B2B markets like manufacturing or logistics, can take anywhere from three to twelve months. This is a far cry from the quick SaaS subscription models that investors are used to.
However, once a robotics solution is in place, it’s very sticky. The churn rate is far lower compared to software, and companies have additional revenue streams from things like services, spare parts, and consumables. So, while robotics requires a shift in mindset for investors, those who understand the long-term value stand to benefit greatly. Intuitive Surgical is a great example of these dynamics and the multiple revenue streams that can be built on top of a robotics platform.
Q: What advice do you give to startups about balancing robust hardware with scalable software?
FS: One of the key pieces of advice we give startups is to stay laser-focused. The most successful companies are those that have identified a specific problem to solve and are clear about who their target customers are. The danger is in trying to create a generic platform that can do everything. It’s much better to focus on solving one problem exceptionally well. Once you’ve achieved product-market fit and are generating revenue, only then should you consider expanding to adjacent product lines. In the early stages, with limited resources, spreading yourself too thin can lead to failure.
Fady Saad
Founder & GP
Cybernetix Ventures
Cybernetix Ventures is focused on advancing robotics and industrial AI by addressing critical gaps in early-stage funding. The firm’s approach combines deep industry expertise with a clear focus on supporting founders, delivering strong returns, and fostering growth across construction, logistics, manufacturing, healthcare, agriculture and climate. By investing in hardware-software solutions and prioritizing a use case-focused approach to robotics, Cybernetix Ventures helps startups build scalable businesses with lasting impact. With its growing portfolio and commitment to the robotics community, Cybernetix Ventures is well-positioned to drive meaningful progress in industrial innovation.
