Third Wave Automation Raises $40M for Autonomous Forklifts

Third Wave Automation Secures $40 Million in Series B Funding

Following a recently established strategic alliance with Toyota Industries Corporation for the development of an autonomous forklift, Third Wave Automation has successfully obtained $40 million in new investment.

Investment Details and Leadership

The California-based company, founded in 2018, completed a Series B funding round of $40 million. This round was spearheaded by Norwest Venture Partners, with contributions from existing investors including Innovation Endeavors, Eclipse, and Toyota Ventures, as documented in a Form D filing.

Matt Howard, a general partner at Norwest Venture Partners, is set to assume a position on Third Wave’s board of directors.

Strategic Partnership with Toyota Industries Corporation

This capital infusion occurred after Norwest Venture Partners’ Howard became aware of Third Wave’s collaboration with Toyota Industries Corporation, a manufacturer responsible for one-third of the world’s forklifts.

Announced in May, the partnership will see Third Wave and TICO jointly develop an autonomous forklift. Production will take place at a TICO facility, integrating Third Wave’s sensor technology and computing platform. Third Wave will primarily focus on the software aspects of the project.

Founding Team and Background

Third Wave Automation’s founding team – including Mac Mason, the chief roboticist, and former member James Davidson – possesses extensive experience in the field of robotics.

Their backgrounds include prior work at prominent organizations such as Google’s robotics program, Google Research, and the Toyota Research Institute.

Addressing the Scalability Challenge in Robotics

“We have experience with a wide range of robotic systems,” explained Poursohi. “However, many of these projects were ultimately shelved due to decisions by larger corporations, like Google or Sun Microsystems, deeming them unsuitable for large-scale deployment.”

Driven by this observation, the co-founders established their own venture with the intention of developing robots that would be actively utilized and fulfill an immediate market requirement.

Focus on Forklift Automation

“Forklifts presented an appealing challenge in manipulation robotics,” Poursohi stated. “These robots directly interact with the physical world in a purposeful manner, and their development and deployment could be achieved within a reasonable timeframe.”

Shared Autonomy and Operational Flexibility

The developed forklifts operate under a system of shared autonomy. This means they function independently for approximately 90% of their operational time, handling tasks like lifting and moving pallets.

However, remote control capabilities are available for intervention when necessary. The robots are designed for ease of operation, allowing customers to utilize their own on-site personnel for remote assistance in resolving any operational challenges.

Technology and Deployment Advantages

“Our technology offers a significant opportunity to improve efficiency in logistics and supply chain management through optimized pallet movement,” Poursohi noted. “A key advantage is its rapid setup and compatibility with existing, or ‘brownfield,’ environments.”

Future Plans and Market Demand

While still in its early stages, Third Wave Automation is demonstrating considerable progress. The recent funding and successful technical trials will facilitate accelerated hiring and a greater focus on commercialization.

The company is currently engaged in discussions with approximately 20 third-party logistics providers and retailers.

“We have successfully addressed the core technical challenges,” Poursohi affirmed. “Our immediate focus is on expanding our operations team to meet the substantial market demand.”

Deployment Targets

Third Wave Automation aims to have 100 units deployed in warehouses and other indoor facilities by the end of 2022, with plans to scale this number to 350-400 units by the end of 2023.