Is VC Turning into a "Customer"? Embodied Intelligence Enters a Moment of Capital Leap

The market has begun to raise questions: As embodied intelligence continues to "attract capital," is the path of Zhiyuan Robotics a replication of other projects? Will the huge profit potential brought about by capital operations squeeze the survival space of projects that simply focus on refining technology and products?

There is a new trend emerging in the evolving field of embodied intelligence.

Recently, the significant news of Zhiyuan Robotics' "reverse acquisition" of the controlling stake in Shangwei New Materials, a listed company on the Science and Technology Innovation Board, combined with the financing dynamics of a series of startups such as Tashi Intelligence, Xinghaitu, Xiaoyu Zhizao, and Kuawei Intelligence, has shifted the focus of the embodied intelligence hot - spot from technological breakthroughs and practical applications back to capital operations.

Embodied intelligence continues to enter the fast - lane of capital investment. According to interviews conducted by reporters from Venture Capital Daily, in addition to the above - disclosed financing events, several other projects are also in the stages of intensive negotiations and successive transactions.

However, problems have also arisen. When capital inflows faster than technological and commercial realizations, will the immature track of embodied intelligence be reshaped by the rhythm of capital, and will the industry rules and development paths change accordingly?

Valuation Overtaking: Is the Capital Path Being Rewritten First?

Zhiyuan Robotics' acquisition of the controlling stake in Shangwei New Materials is undoubtedly a landmark event indicating a shift in the development path of the embodied intelligence industry. Although Zhiyuan has repeatedly denied the intention of "back - door listing" after the transaction was announced, the fact that a company founded only two years ago launched an acquisition of the controlling stake in a listed company is enough to shock the market.

Behind this rare "reverse acquisition" operation may be a profound change in the capital structure of current AI and robotics startups.

Wang Jie, an AI investor, told reporters from Venture Capital Daily that previously, most startups did not have enough cash to acquire the controlling stake in a listed company. However, this situation is changing in the era of AI 2.0.

"Since the emergence of large - scale models at the end of 2022, the development speed of startups in the AI and robotics sectors has far exceeded that of the past. Before reaching the usual 4 - to 6 - year cycle from establishment to IPO for technology companies, their valuations have far exceeded those of most listed companies. Such high valuations combined with large - scale financing have given some startups the capital strength to acquire the control rights of listed companies."

Wang Jie further cited examples of leading AI companies in the United States: Anthropic, an AI base model company founded in 2021, currently has a valuation of $61.5 billion; Perplexity, an AI search company founded in 2022, currently has a valuation of $14 billion. The valuations of these startups founded only three or four years ago have exceeded those of many US - listed companies. "So, in comparison, Zhiyuan's path is not difficult to understand. Looking at the time - axis of the technology industry vertically, we have indeed entered a period of 'non - linear accelerated development' at this stage."

Zhiyuan Robotics is a typical representative of this "acceleration cycle."

This company, founded in February 2023, has completed 10 rounds of financing so far, attracting a series of investors including Tencent, JD.com, Sequoia Capital China, Hillhouse Capital, Zhongke Chuangxing, BlueRun Ventures, BYD, SAIC Investment, and Shanghai Lingang New Area Fund. However, the company has not publicly disclosed its cumulative financing scale. Only the A3 - round financing was reported by the media to exceed 600 million yuan. Correspondingly, Zhiyuan's valuation has been continuously rising. It reached a valuation of $1 billion just a few months after its establishment, quickly joining the unicorn club. As of now, the company's valuation has reached as high as 15 billion yuan.

In fact, before this capital operation of acquiring a listed company, Zhiyuan Robotics, with strong financial strength, had already taken a different development path from its peers.

In addition to conducting technological R & D and continuously launching and iterating robot products, Zhiyuan Robotics has also made several external equity investments. The invested projects include Annu Intelligence, Linghou Robotics, Digital Huaxia, Lingchu Intelligence, Qianjue Robotics, and Fuxing Electric, covering multiple segments of the robotics industry chain.

Moreover, Zhiyuan Robotics has also cooperated with Hillhouse as a limited partner to establish the Shanghai Lingzhi Xinchuang Enterprise Management Partnership (Limited Partnership), an equity investment fund. The scale of this fund is not large. According to industrial and commercial information, the registered capital is 10 million yuan, and Zhiyuan Robotics subscribed for 50% of it.

Another characteristic of Zhiyuan Robotics is to establish joint ventures with listed companies for close cooperation. Reporters from Venture Capital Daily noticed from industrial and commercial information that currently, Zhiyuan Robotics has established joint ventures with listed companies such as Wolong Electric Drive, Lingyi Precision Industry, Dongyangguang,isoftstone, and Dafeng Industry respectively. Some of these listed companies have even promised actual trading actions such as "cooperating in order procurement."

This series of combined strategies is interpreted by many industry insiders as "vertical integration around the relationship between capital and the industrial chain." A senior primary - market investor told reporters from Venture Capital Daily that similar layout methods are not uncommon among star startups with large - scale financing. Zhipu and earlier SenseTime have all adopted similar approaches.

"In essence, it is a way for emerging companies to build an ecosystem. Through strategic investment and equity binding, they can build a semi - closed ecosystem around their own business and pre - construct the resource map that a listed company should have," said the above - mentioned investor.

Another industry insider in the field of embodied intelligence said that different companies have different strategies. "The more financing you get, the more you need a convincing 'capital story.' In the early stage of business when large - scale implementation has not been achieved, if the valuation cannot be realized through product growth, capital - level integration actions are needed to meet the expectations of investors."

Regarding the acquisition of the controlling stake in Shangwei New Materials, while denying the intention of "back - door listing," Zhiyuan Robotics said that it aims to inject more high - quality assets in the future to empower internal incubation within the listed company. There were also reports that Zhiyuan Robotics planned to pursue a listing on the Hong Kong Stock Exchange, but the company later denied this.

An industry insider familiar with the transaction structure analyzed for reporters from Venture Capital Daily that after the acquisition of Shangwei New Materials, Zhiyuan Robotics will obtain a listed platform. "In the context of capital, whether to inject the main business later is not the most crucial thing. The most important thing is to obtain a new refinancing and equity exit channel by controlling a listed company."

So far, Zhiyuan Robotics' acquisition is no longer just an individual capital operation of a project. It is interpreted as a signal of the rewriting of the development path of star projects in the primary market: from "raising funds - technology - implementation" to "raising funds - integrating resources - building a platform." In a track with huge potential but still in the early stage of technology and business, the symbolic meaning of this path reconstruction is far greater than the transaction itself.

Under the Race for Financing, Has Capital Operation Become the Core Competence?

While Zhiyuan Robotics is taking its capital layout to the "next level," the financing enthusiasm for embodied intelligence continues to rise.

In the same week, Tashi Intelligence, Xinghaitu, Xiaoyu Zhizao, and Kuawei Intelligence successively completed a new round of financing transactions. Among them, Tashi Intelligence, which was founded in February this year, has set new records for angel - round financing in the field of embodied intelligence in both rounds, with a cumulative financing amount exceeding 1.7 billion yuan.

Xinghaitu, founded in September 2023, officially announced that the cumulative scale of its A4 and A5 - round financing has exceeded 700 million yuan. Reporters from Venture Capital Daily also learned from informed sources that Xinghaitu is currently in contact with new investors at a valuation of $1 billion.

Based on incomplete statistics by reporters from Venture Capital Daily using data from Cailian Press' VC Link - ZHIZHONG, as of now this year, there have been a total of 108 investment and financing events in the field of embodied intelligence, with the publicly disclosed financing scale exceeding 27.1 billion yuan. Both the number and the amount have exceeded those of the whole of last year.

A Review of Actively - Financed Projects in Embodied Intelligence

The market has begun to raise questions: As embodied intelligence continuously "attracts capital," is the path of Zhiyuan Robotics replicable by other projects? Will the huge profit potential brought about by capital operations squeeze the survival space of projects that simply focus on refining technology and products?

During interviews, most projects in the field of embodied intelligence denied the possibility of adopting similar complex capital operations. Their top priority is to solidify their products, refine their teams, and improve their business models.

However, the founder of one project told reporters from Venture Capital Daily that they do not exclude diversified capital paths. "But the core is whether they can truly achieve their goals. Capital operation is a common means and not a focus worthy of special attention." Regarding the financing boom in the field, the founder admitted that currently, the most intense competition among projects seems to be concentrated on the financing end. "Everyone is competing for VC investment, treating VCs as 'customers,' while the competition at the end - user delivery end is relatively limited."

The capital side has a more open attitude. Most investors told reporters that the ability to operate effectively in the capital market is one of the core competencies of startups.

A well - known institutional investor in the field of embodied intelligence told reporters from Venture Capital Daily, "I think (Zhiyuan's acquisition of a listed company) is a good thing. There should be various imaginative capital operation methods."

The investor believes that the "high - profile and aggressive" approach is one of the feasible paths for embodied intelligence startups to establish long - term competitive advantages in the vast market. The key is to be the first to enter the capital market and become the first listed company in the industry, thus quickly gathering sufficient funds. When the industry boom subsides and capital retreats, abundant cash reserves will translate into significant first - mover advantages, enabling enterprises to expand against the trend, continuously optimize their products and ecosystems, and further consolidate their leading positions.

Wang Jie also believes that with the high popularity of embodied intelligence maintained, projects will strive to be "all - around warriors" leading in various aspects such as technology, commercialization, and capitalization. "The strong signal that Zhiyuan sends to the industry is that when excellent leading companies are advancing at double - speed, 'starting with the end in mind, having a global strategy, competing differently, and iterating quickly' is very important."

During exchanges with project parties in the field of embodied intelligence, reporters from Venture Capital Daily also learned that financing is a crucial aspect from the very beginning of a project. Telling a good capital story and providing sufficient imagination space for the capital market in business narratives to ensure sustainable financing is as important and prioritized as doing a good job in R & D, production, and implementation.

However, both the capital side and the project parties are skeptical about the possibility of replicating Zhiyuan Robotics' capital path on a large scale in the industry, as the threshold for replicating this path is extremely high.

"First of all, a startup needs to raise funds in multiple rounds and have a capital strength of about 2 billion yuan in cash on its books, and few startups in the industry have this strength," the above - mentioned investor told reporters from Venture Capital Daily. In addition, the ability to access listed - company resources and the control ability for actual operations are conditions that only a few startups possess.

Special Statement: The content of this article is for reference only and does not constitute investment advice. Investors shall bear their own risks for any operations based on this information.

This article is from the WeChat official account "Venture Capital Daily." Authors: Li Mingming & Ao Jin. Republished by 36Kr with permission.