Calibrate Ventures Raises $97M for AI and Automation Fund

Calibrate Ventures Launches Second Fund with $97 Million

Calibrate Ventures, an early-stage venture capital firm specializing in companies utilizing artificial intelligence and automation, has announced the launch of its second fund. This new vehicle totals $97 million, representing a roughly 25% increase over its prior fund.

According to co-founder and managing partner Jason Schoettler, Calibrate Fund II brings the firm’s total assets under management to $175 million.

Initial Fund Performance and Investments

The firm’s first fund, raised in 2018, secured $80 million in capital. Since then, Calibrate Ventures has made investments in 17 companies.

Notable portfolio companies include Built Robotics, Embodied, FarmWise, Soft Robotics, Talage, and TruckLabs. These companies have collectively secured $425 million in subsequent funding rounds.

Fund II Deployments and Deal-Winning Strategies

While some investments from Calibrate Fund II have already been made, these remain undisclosed at this time, as Schoettler confirmed.

Schoettler emphasized the importance of domain expertise in securing deals. He stated that a strong network and the ability to facilitate introductions to customers, as well as board development and strategic financing, are key advantages.

The Evolving Landscape of AI and Automation

Co-founder Kevin Dunlap, a mechanical engineer with prior investment experience in companies like Ring and Solar City, highlighted the recent advancements making AI and automation economically viable.

Dunlap believes that innovations like Soft Robotics, a portfolio company, would not have been feasible a decade ago due to the higher costs of sensors and limited computing power.

He also noted the increasing involvement of large strategic investors, both alongside and following Calibrate Ventures’ initial investments. This indicates a strong understanding of the sales cycle and revenue model necessary for generating substantial returns.

Accelerated Growth and Team Expansion

The firm has observed a significant acceleration in activity related to AI and automation, particularly following the onset of the COVID-19 pandemic. Activity has increased “from zero to warp speed” over the last year.

To meet this increased demand, Calibrate Ventures expanded its team in 2021. New additions include venture partners Aimée Leifer, Paolo Pirjanian, and Daniel Murray.

Carrie Zawistowski joined as vice president of portfolio finance, and a dedicated firm was engaged to manage public relations and marketing for portfolio companies.

Investment Focus and Market Opportunities

Calibrate Ventures invests across a diverse range of industries, including education, healthcare, logistics, law, financial services, manufacturing, and transportation.

The firm primarily focuses on computer vision, AI, machine learning, and robotics. They are frequently drawn to sectors facing labor shortages, such as agriculture and construction.

Dunlap projects that approximately $500 billion will be invested in AI and its implementation over the coming years. He cited Tyson’s $1.3 billion investment in automating its meat plants as an example of this trend.

“We expect real adoption for machine learning and advanced robotics in five to 10 years,” Dunlap stated. “Automation is great for anything dirty, dull and dangerous, where it is hard to find people who are excited about taking those opportunities.”