This Week in Startups - These robots could cut delivery costs by 80% | Next Unicorns

Starting point is 00:00:00 Hey, everybody. Welcome back to Twist. My name is Alex. Okay, rewind the clock back to the COVID era. There was a boom in warehouse hiring because we pulled forward quite a lot of e-commerce growth, effectively overnight. Now, today we hear more about how e-commerce giants are adding automation to their fulfillment systems and really getting a lot of benefits from that, cost control, speed efficiency. But what about the smaller sellers? Are they reaping the same rewards from automation? If they are dependent on existing third-party logistics providers, maybe not. But there's one startup that wants to change that by bringing a fleet of robots and smart software to a warehouse near you. So please join me and welcoming to the show. It's Kevin Gibbon, the co-founder and CEO of Citronic. Kevin, how are you? Great. Glad to be back.

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Starting point is 00:01:09 Go to Squarespace.com slash twist for a free trial. When you're ready to launch, use offer code Twist to save 10% off your first purchase of a website or domain. I'm so glad you're here. Now, we've spoken over the years. I covered a couple of your companies. And it's one, lovely to see you again. Your hair is still in place. How dare you?

Starting point is 00:01:25 It is. It is. I'm sorry. But why are you doing this again? You build ship. You scaled it. Didn't work out the way we wanted it to. Then you built airhouse.

Starting point is 00:01:35 That you sold to a company last year. And here we are with Citronic. You're taking another bite of this Apple. Why is this itch not sated yet inside of you? I think that building a really great company and it's just really hard. And I think every single time that I do it, it just learns something new. And then I just get interested in where it's kind of pulled me. So I started ship, what, 13 years ago, something like that.

Starting point is 00:02:01 And I was an eBay power seller. And it was just really hard. And it was a great consumer shipping service. It was not a great venture-backed business. Learned a ton and then took it to Airhouse where I learned a lot about the warehousing aspect of things. And I was like, well, I don't actually want to have a bunch of like, we had our own warehouses and fleets of couriers at ship. I'm like, I don't want to deal with the people problem. like I'm just going to go just purely software.

Starting point is 00:02:28 So Airhouse was a marketplace for 3PLs. So we would work with the 3PO. We'd figure out which ones are good. And then we'd have a network across the U.S. and then globally. And it worked really well. And then I just kind of like continue to fall into like what is the big like this. Shipping and logistics is a huge, huge category.

Starting point is 00:02:47 But like across the board, what is the biggest pain point? And really it's cost. And then with especially the e-commerce, it's speed. So if you can fundamentally change that in some way, you can, like, you can just build something that everybody's going to want and use. And that's what I kind of, I figured out at when we started at Citronic. Yeah, okay. But also, yes, you can make a good business out of it. But there are some benefits to, I would say, the broader economy at the same time.

Starting point is 00:03:16 Because if you can help the smaller seller, the smaller DTC brand, dare I say even the mom and pop, have a fulfillment system that is competitive. with what Amazon is built for itself, then they can better compete with the incumbents, yeah? Yes. Yeah, totally. And we see that all the time. Like half our customers right now is Svetronic. They're TikTok sellers.

Starting point is 00:03:36 They're people that are just blowing up overnight. So it's really empowering those people and then scaling with them. I think we all kind of like look down our nose a little bit of companies that are like big on selling on Instagram. But like how much stuff in your house, dear listener and viewer came from Instagram? So none of us can judge. And frankly, these are a small. businesses. We should support them. And that brings us to what you're actually building with electronics. So I want to talk about the robots you have. There's a number of different robots

Starting point is 00:04:04 you're bringing to these warehouses that are then essentially orchestrated through software. It's kind of IRL orchestration. Forget agents for a minute. Everybody will talk about the real world today. But I think these are off the shelf. So tell me about which robots you've picked and what they do and then how they kind of work in concert to replace human labor inside of warehouses. Right. So it really is its physical. for commerce is what we're building. And it's really looking at a use case that I'm very familiar with, which is e-commerce fulfillment.

Starting point is 00:04:33 And really just like thinking through how can you get the cost, how can you actually bend that cost curve, what's available today that wasn't available to five years ago. And it really is robotics. And so looking at the different point solutions, like any one of these companies independently is not like transformative to an individual business. But if you put together enough of them and then manage them as a service, it can become one. So some of the major systems that we have. So we actually do a combination of both buying and also we do some light manufacturing today. That may change as we continue to scale.

Starting point is 00:05:08 So we have a robotics team and we do some of the stuff and we have to work. We are like a hardware robotics company at the end of the day, whether we actually buy the robots or we build them, we still need to maintain them and all that stuff and all the stuff in between. Yeah, you'd have to have the parts and know-how in-house and also across all over different warehouses. Yeah. Exactly. So I don't even take it a step further. It's, it's also the, the real estate side. So what kind of site are you actually going to put these in? So we actually operate micro-fulfillment center. So about 30,000 square feet. And because we use robots, we could actually be closer to the city centers. So we don't have to worry about the high

Starting point is 00:05:45 labor cost of people traveling. We just have a very, we still do have employees that that will do a lot of the managing. But it really, enables us to get close to the customer, have a really tight space, and then use a lot of these different robotics. So one of the, there's kind of like four different components within our warehouse today, which definitely will change. But again, I think it's a really important, and especially for any robotics founder or whoever, you can't do everything with these today. You can't. So like, I kind of stumbled across a use case that is very, very great for robotics. And that is you're taking it you you a brand has call it a hundred different skews

Starting point is 00:06:23 And you you store it around typically in a warehouse and what you need to do is that when you're the buyers buy something You need to take those whatever they've ordered three of a skew B sq whatever and you need to collect it and put it into an actual order so either like a poly bag or a box and so that operation is actually quite expensive on the human side So it requires like if it's not completely non auto automated warehouse, you have people walking miles per day and these warehouses, and it is still the majority of the market doesn't have any automation at all. And so we're able to take that task that cost, like even the best out there, like in labor costs, like $2.50 per order, that's their cost. That's not what they will charge you. And we're able to take it down to cents with doing the actual robotics. And I could get further into that. Let me let me back a couple of things.

Starting point is 00:07:15 So some off-the-shelf robots, some stuff you're working on in-house, and these robots, the idea is essentially robotic automation inside of warehouses and fulfillment. So when something arrives at your warehouse, let's say I'm a seller and I'm selling donut keychains. And I deliver them. Once they get dropped off, are the robots able to essentially handle them from intake to storage to picking to packaging and then to dropping them off into the truck without a human touching them? So not all of those. No, there are some pieces. So I'll break it down. So you have the receiving process. That today is like probably the biggest need still for human labor. You have a bunch of different products coming from a bunch of different manufacturers. It's not all the same.

Starting point is 00:08:00 It's really hard to automate that. But also, if you look at the percentage of time that actually takes to put it into a storage system is not that much. And then the next step is that you store it into whatever racking system you have. have, and then you have to actually pick things. And so what we use is we use was called an ASRS system, automatic storage and retrieval system. So there's dozens of these companies worldwide out there, and typically they're only available to like the Walmarts of the world.

Starting point is 00:08:30 So Walmart will pay like a systems integrator, probably $50 to $100 million per warehouse, and then they use a combination of these ASRS systems. And then also some of them, not a lot of them, will actually have robotic pickings. arms and the actual conveyance and sortation and all of these different pieces, but it's only available to like the largest retailers. It hasn't even made it into the 3PLs that other smaller companies have done. 3PL industry is not automated at all. It's just the Walmarts and a lot of these grocery stores. I know. It's crazy. This is the place we've seen so much progress in automation. I mean, how many generations of robots is Amazon built to move around its racks inside of its

Starting point is 00:09:10 warehouses? Like, yeah. The problem actually with Amazon is interesting is that you just have too much historical stuff on there. So, like, everybody points out Amazon is the leader. And I would say hard to argue with that. Sure. But they're using a 20-year-old system. Like, Kiva Robotics is not the ideal for e-commerce picking. It doesn't make sense.

Starting point is 00:09:30 They're literally moving aisles to a picker. Like, think of that for a sec. Like, like, it's many, like, short warehouse, like, like, to a picker. It's like bringing the gas station to the car. Exactly. It's like bringing the movie theater to your backyard. Like, what are we doing here? Exactly. And that's why it looks like chaos and, well, it looks very nice and it's maybe like an orchestra playing with all the film and stuff. But it's just a lot of moving stuff. And it's really inefficient. That's what it is. And they need thousands of these robots, yes.

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Starting point is 00:11:00 better phrase, you can still offer dramatic cost reductions to your customers because you're taking out as much of the human labor as possible. And if anyone listening is concerned about automation killing off human labor, we're automating the worst jobs. Amazon warehouses are not places that are based on everything that I've read, a lovely place to spend your time. So I think this is a great example of where automation does help a lot. So I'm with you on that. Now, you guys talk about up to 80% cost reductions for your customers.

Starting point is 00:11:30 That is a staggering amount of savings. So I'm curious, is that best number for the exact product that happens to fit well? Or is that a number that you think maybe half of your customers can achieve? We do that today. Yeah. So let's talk real numbers. Yeah, yeah, yeah. 3PL typically will charge you like $3, maybe $3.50 for fulfillment, like, depending on how many, like, average number of skews per order, let's call it two.

Starting point is 00:12:03 And we could get that. We charge you. It's 50 cents per order, 10 cents per pick. So that same order would be 70 cents. And we still make like really good money on that on gross margins because it's mostly robots. Okay. But but blah, but, but, but, but, but great gross margins off 70 cents are still cents. And the robots you're buying can be cheap.

Starting point is 00:12:26 Robotics is not famous for its low costs. Yep. And you do have to have real estate, as you said, you know, closer to your customers, which is higher cost than having it out in the sticks. So what kind of volume do you need to run through one of your smaller, you know, 30,000 square foot centers to make. to make the math pencil out. Yeah, it's roughly, it's about 10,000 orders per day

Starting point is 00:12:48 to when we start getting into some real profits. We can, we've tested it out. We could do about 30,000 orders a day. And just like people understand, I know a lot of people really understand fulfillment, but just think of robotics in like its simplest terms. Like, this is what it was meant to do. Like robotics was supposed to like be a step change.

Starting point is 00:13:10 in like cost or speed or whatever it's not supposed to like replicate what a human was doing so instead of walking the warehouse floor like we don't have humanoid's good doing all these things and so we could bring down the cost just so dramatically and then the only real way that this stuff really is going to get adopted it's not because you want robots in your warehouse because also you have to upkeep and all that there's more overhead you have to completely change the cost curve and the only way you could do that is if you fully vertically integrate you have all all these facilities Yeah, you have to purchase them up front. So I'll give you some real numbers.

Starting point is 00:13:45 Sure. One point two million dollars in upfront CapEx per warehouse. That's not that much. It's not that much. No. But to be fair, like we have a very experienced team and a lot of great. Oh,

Starting point is 00:13:55 no, I'm not talking down your investments. I'm just saying like I thought there was going to be another zero in that thing. That's what, that's what I want it. Yeah. It's, I think that somebody going like say a small business to try to do this.

Starting point is 00:14:07 Or you honestly, even Walmart. They're going to go to a system's integrator, they're going to, they are going to pay at least like probably four or five times that. So that's our costs because we are the system generator. It's all of our software. We work inside of all of these different separate systems and then bringing them together. But that's the actual hard cost for the actual hardware. So you can imagine like when you're doing 20, 30,000 orders a day. And yeah, even if you are only making 50 cents, 60 cents, that's a pretty damn good bit.

Starting point is 00:14:38 When you're operating like 30 days a week, like per warehouse, the payback on that is very, very fast. No, all that checks out. I wasn't sure about the how much volume you could push through a 30,000 square facility. But it sounds like if you make, as you said, reasonable profit at 10K and that can scale up to 30, well, then the economics look absolutely beautiful. And the repayment period for the investment is going to be, I'm not going to run the math in my head, but like less than a year.

Starting point is 00:15:02 I mean, it's going to be pretty quick. It's faster than that, yeah. Yeah, faster than that, yeah. I was trying to be, try to put a loose, loose cap on that, I think. Yeah, no, I'll, yeah, that's a good number, yeah. So I'm confused about one part, though. Now, I don't think we should have humans walking 47 miles in an Amazon warehouse, putting toothbrushes into little carts.

Starting point is 00:15:20 I think that's pretty silly. But I'm not sure about why labor costs don't scale linearly with essentially volume. On your side, you guys talk about how, like, labor costs kind of spiral as you grow. And to me, that doesn't make a lot of sense because if you have 10 orders, one person, then you do 30 orders. Three people seems kind of like one, two, three. What am I missing in that calculation? Overhead, as far as management and facilities costs.

Starting point is 00:15:44 That's where you just pack on so much cost, but also the complexity gets really hard. Quality typically goes down. And so that's why you don't see a lot of like a single 3PL really owning everything. Amazon is a great example, but that's because they do their own products, right? Like that's different. They're not doing it. They're not competing in the open marketplaces with all of these other, for providers. So there's a very long tail of like billion dollar three PLs out there. And that's because

Starting point is 00:16:14 it's just really hard to scale it. You can't scale it linearly. Like I was in the like not only the ship arguably that was a 3PL. We actually did our own labor and all that. But it's like I saw this airhouse all the time. We worked with dozens of different 3PLs and they'd all have the same problem. It's like the management of people. It just breaks. Every single one of these warehouses break and it comes down to the human element. And that's because they just don't have enough leverage. It's like, you still have to get more and more people and it's usually a lot of temp labor. And also, you're typically have to locate these, like to get your cost down, you got to get your labor cost down, which means you're in a location that it's probably in the middle of nowhere.

Starting point is 00:16:54 Like, so it, and you probably are competing with other warehousing jobs. It's just really tough. So it's like, it takes a bad supervisor, bad GM, it takes a misalignment and management. And And then all of a sudden, everything comes crumbling down. And that's why, like, fulfillment is, like, one of the only things that as you scale, it actually gets more expensive on a per unit cost. That's crazy. But I, and I'm glad you told me that because I never would have guessed that. Right.

Starting point is 00:17:20 So it really makes the idea of having your smaller facilities with automation. Yes. Make a lot of sense because you don't have the same problem. And also, you can be closer to customers for faster ship time. So it's kind of like, it feels kind of win, win, win. in that case, if you are an existing 3PL who are going to get the rug ripped out from underneath them.

Starting point is 00:17:41 But short of that, right. Yeah. Well, look, we're in a competitive marketplace. And I think ultimately, like, who are the people that are going to benefit?

Starting point is 00:17:51 It's going to be consumers and brands, right? Like, yeah, like we're all competing. We all want our stuff faster and cheaper and, and, like,

Starting point is 00:17:57 I'd love for more of my favorite brands to be like, have same day delivery and everything. And they can't afford it. Yes. Which brings you to a question. So we talked, you know, getting the cost of picking storage and, you know, getting something ready to go out of a warehouse.

Starting point is 00:18:10 Super key, get that down. Lovely. Yes. Now, on the shipping side of this, I presume that you plug into existing delivery services. Yes. Yeah. So we will use today's standard carriers. So the UPS is that whoever, international carriers, DHS, whoever, they'll come to our warehouses today.

Starting point is 00:18:31 It's very simple. We're not trying to invent everything. but yeah, that's what it is today. I was just curious if there's going to be any possibility to work with some of the the drone delivery companies. We thought the Zipline here on the show, I feel like they've kind of proven early scale.

Starting point is 00:18:47 There's also a company called Manna from Ireland that we had on the show. They're moving into the U.S. And so it seems that when we think about low-cost, local, quick deliveries, drones are becoming less of a pipe dream and more of a possibility. I think so.

Starting point is 00:19:00 And absolutely. For us, we will use whatever is cheapest and fastest and not high quality. So we're into partnering, potentially we'll look at maybe even like doing some of it for our actual like delivery. Like the fulfillment is really our wedge into like the broader ecosystem. And wherever we can trim costs and pass those savings to our customers, we're going to. The highest cost of an actual like e-commerce transaction outside of the marketing and

Starting point is 00:19:29 the product, it is shipping and fulfillment. sugar is actually more expensive than fulfillment. So we're taking off the fulfillment piece, which really is just like an extra tax. Like why wouldn't you as a brand just want an extra 2 to 5% gross margins just in your, like, it's like a no-brainer. Extra 5% gross margins could revolutionize someone's business from break even to consistently profitable.

Starting point is 00:19:50 People don't really even believe what we're selling. It's like, no, it's real. We're alive. I mean, like, I've known you for a minute. Yes. I know you're a real legitimate entrepreneur. And I still kind of want to go see when you're, for your facilities and be like, really 80%.

Starting point is 00:20:04 Come. Come. Well, actually, that's a great segue because according to some news I read about your funding announcement. Yes. You have facilities in the San Francisco Bay Area. You're building one in Dallas and you have a third, where's the other one? Chicago. Chicago, right. So why those two locations?

Starting point is 00:20:19 How did it set up go? And how much volume are you currently handling as your company, kind of leave stealth and goes to market? Regular listeners already know that if you've got a great idea for a new business, are friends that Northwest registered agent want to help you bring it to life. They're going to be the most amazing partner you've ever had. Even if you're not ready to form an LLC, you still need to take care of some basics. So Northwest registered agent is now offering free identity services.

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Starting point is 00:21:13 Learn more at Northwest Registeredagent.com slash twist domain. So we started off in the Bay and really because that's where myself and the founding, my co-founder and the team live and also great place to. start a venture back company. And our first facility was our R-D facility. And that's where we just tried to make the... Like, I knew this company is going to be a really important one if we get the cost down. Yeah, I was as skeptical as you were.

Starting point is 00:21:44 I, but I needed to see it. And I needed to prove it. And so we did that at a very small scale. So the actual facility is... It's about a tenth of the size of the ones that were now expanding out. So it's about 2,000... Yeah, two, three. thousand yeah yeah yeah with the exact same technology that we are are using for our

Starting point is 00:22:05 rollout we proved it and just with with us and in turn we actually had our own brand that we just were just selling a bunch of stuff on and it worked great and we were doing all the film like we were we were managing the robots and we were debugging stuff and all that and then we got at the point where I was like okay we're ready to start thinking about taking on more capital and then gonna expand this and and then offer it to the broader market. And that's when it's like, okay, if you're, if you are in, uh, e-commerce logistics, like there's a few things. You need to have a central operations because you need to, your first location needs to be central. So Chicago, Dallas, somewhere in the middle of the country.

Starting point is 00:22:44 So you're able to reach the coast in a relatively like short amount of time. So that's what we launched Chicago first. And then it's going to be about the coast. So we're, we're getting ready to launch LA. New Jersey is going to be at the, at the end of the year. And then it'll be about kind of just expanding this to every other major market, getting closer to your customers, and then spreading a brand's inventory across our different locations. These facilities that we're talking about that you're going to bring on this year, are those the, I think you said like 30,000 square feet, you know, up to 10 to 30,000 packages today? Okay, so they're the full Zoot.

Starting point is 00:23:19 The full Zoot. Okay, awesome. So how are you getting brands to sign up with you? Because the PPL market is quite large. You're competing to some degree to Amazon and their fulfillment network. I presume it's not that easy to get a lot of folks to show up. At the same time, you do have a lot of history here. You probably know a lot of people.

Starting point is 00:23:34 So how goes the getting brands to pick you side of ticks? So I think that what gets everybody's attention is the robotics, obviously. And that's kind of like, hey, we're automating this. And everybody's like, yeah, that makes sense. It's like, of course. Okay, we'll take a call or whatever. And where we get people to actually sign on is the cost. It really is.

Starting point is 00:23:54 It is such a no-brainer after you trust us. That's the biggest hurdle we had to overcome early days when we were nothing and just like we did our R&E facility, but now we have real customers and all that. But it really, like, I've been in this industry for a long time. Like Airhouse was arguably solving the same problem. Our, like, close rates are unbelievable. And also the other important thing, I know we talked a lot about small business, but our ability to go upmarket is unlike anything I've ever seen before.

Starting point is 00:24:25 So the exact product is the same. Same for like a $50 to $100 million brand. I was thinking about this when you said you built your test facility with a couple thousand square feet and the same system. To me, that implies a lot of modularity. Yes. So you can scale it up and down. So I don't see a reason why, I mean, correctly if I'm wrong, you couldn't go from

Starting point is 00:24:43 3,000 to 30,000 to 300,000 square feet and just have more of the machines in there. Like, they're robots. They don't smell bad. You don't get mad about being packed in. Right. Well, well, actually, so the benefit of having a more module smaller footprint is that you can be located in city center. So one of the things we actually didn't talk about is like the real estate. Where do you get these facilities? And like I like we don't need to be in the middle of nowhere.

Starting point is 00:25:08 Like we don't need to be from a cost standpoint. We don't have the per unit costs that a labor heavy three pill would be. So it makes sense for us to be closer to the city. So and that lends itself to being in smaller facility. You're not going to get 300,000 square feet, uh, in the middle of San Francisco or something. I have you guys. You guys. could, but it, but then you'd had no money. Exactly. Yeah, totally. And so the smaller nature, it de-rests a lot of things. So you prove out one, and then you replicate them, and then you're able to have this like containerized unit that it is more on the small side, sure, but you don't get a lot of the economies of scale by just expanding it. You actually get more benefit to go in

Starting point is 00:25:50 more places because then you're not only like changing the fulfillment curve on the cost, but you're now moving the shipping needle. And that's how we're able to go upmarket. It's like a brand that is a hundred million dollar brand, they should probably be in, I don't know, four or five different locations across the US, and they'll see substantial savings on the shipping side. And so for us being able to be in so many different markets,

Starting point is 00:26:18 is actually better than having fewer larger facilities. Which is the inverse of how things had been going, which was enormous distribution facilities that serve many, many markets. I mean, if you've been on the highway and you've driven past, an enormous building with like 5018 wheelers out there. That's what we're talking about. Okay. So you guys only raised, I think it's $13.5 million.

Starting point is 00:26:37 Yes. And I say only that's a very large seat round and well done. Thank you. Thank you. 10 points. Sorry. I didn't mean. I was so dismissive.

Starting point is 00:26:46 Don't delete what I said before, but here's another take at that. You just raised $13.5 million. Congratulations, Kevin. Thank you. No, but I mean, clearly very large aspirations here. And I think there's actually some pretty cool things you could do. I was just friend to Google and try to remember the name of the company, serve robotics. They have the little delivery bots that go on your sidewalk.

Starting point is 00:27:05 They're public and they're only worth $450 million, which is like for the public markets, like a plug nickel and a piece of gum. And like, think about how cool it would be if your facilities in these urban areas, have their own dedicated fleet. So you can tell people, like, look, not only will we cut all your fulfillment costs, but we also have if your deliveries nearby, we can just do it for you too. Like there's so much you can add here. There's even assets in market that are relatively cheap.

Starting point is 00:27:29 So are you guys going to be, I don't know this is kind of a silly question, but super aggressive in trying to like capture market share quickly. Because I don't want anyone else to like come behind you. So my question is how aggressive are you guys going to be? Because I can see a lot of inorganic growth opportunities ahead for such a tonic. So for us and how we've even gotten here is focus. Like we're not getting like I, we turn down customers all the time. When they want to do a lot of B to B stuff, they wanted to do some customers. some like packaging or inserts or anything at that, we just say no.

Starting point is 00:27:58 We're like when you're ready to really want, you want cheap and fast fulfillment operations, you come see us. And so the answer is we have to stay focused. And I think that is the only way that that that's going to be the start of like where you see robotics companies actually chip off at the incumbents are these very focused use cases. But one other thing is that I think that the broader like you bring out the different point solutions, which we use them. We love them.

Starting point is 00:28:23 It's amazing. It's amazing. the venture kind of is backing this industry. But as an actual like business and even maybe as an investment, these point solutions are really tough because there's a lot of competition. There's not really a lot of defensibility. So like my broader thesis on the market is that there is going to be a service layer on top of a lot of these different point solutions, whether that's in logistics or something like that. And the people that are able to roll up a lot of these technologies and continue to use the cheapest, fastest, whatever it is, whether they

Starting point is 00:28:54 manufacture themselves or they go in partner, that is where all the value is going to increase to, is those service levels versus the actual point solutions, the individual robotic arm piece, whatever. I just believe that it's going to mostly get colonized, which I think for a lot of industries is going to be a great thing because it's going to enable a lot of stuff. Yeah. But fundamentally, what you're doing is making e-commerce even better, which I think means that if you own a mall, this is the last chopper out.

Starting point is 00:29:23 Drop that asset because we're not going back. Kevin, an absolute treat. The website is Citronic. com.a.c-R-O-N-I-C-R-N-I-C-R-N-I-C. And is there a job you're hiring for? You'd love to shout out to our... Everything. Yeah, you want to be in tech

Starting point is 00:29:37 and you want to be part of something really awesome. And, yeah, hit me up. I'm Kevin Gibbon also on Twitter. All right. Thank you very much. We'll see you soon. As you may have noticed, if you've ever seen this show in video format, I'm at Glasses Wear.

Starting point is 00:29:51 I've worn glasses since third grade. I've had glasses of all types, fancy sunglasses, very basic regular glasses, you name it, I've worn them. I even had sports goggles back in my high school wrestling days. A little out of fashion now, but they were a real thing. Now, I learned about a company called IBot, and what they are doing is putting kiosks into places around the world where you can go walk up and get a new glasses prescription in 90 seconds. I love this idea. I love the idea of bringing health care to the people, getting people what they need at a lower price point, applying technology to long-standing issues to make them just easier to solve. So please join me in welcoming Matthias Hoffman, CEO and co-founder of IBot to the show to tell us all about how he's going to make everyone see that much better.

Starting point is 00:30:29 Matthias, welcome to the show. Thank you for having me. Our show is filled with helpful and practical advice for founders, but there's another reason to become a regular twist listener. Amazing deals on essential products to help you run your company more effectively. So I'm super excited to announce our new deal with Agree.com, the all-in-one contract to cashflow workflow workflow. Go right now to agree.com, sign up and tell them you're a J-Cal listener, and they'll give you 50% off for life. Agree is the number one fastest way to go from contract to cash. That means gathering e-signatures, invoicing, billing, payments, and revenue recovery.

Starting point is 00:31:05 No more jumping between four or five different platforms just to write out a contract. Get it signed, that set up billing, and start sending out invoices. 99.64% of all invoices on the entire platform are paid within just 10%. 10 days. So if you want to stop chasing invoices, go right now to agree.com. And if you tell him Jason sent you, you're going to get 50% off for life. I'm very glad to have you here because I do feel like around the world getting the correct prescription for your eyes is much harder than it should be. And I kind of think of iBot as a company that could help a lot more folks have more accurate and regular prescriptions. But let's talk about the technology first. Most

Starting point is 00:31:44 people listen to this, I think when they get their eyes checked, they go in to see probably an ophthalmologist. and they have a big workup, like I was describing in the intro. You guys are offering something a little bit simpler and a little bit more targeted. So why don't you explain to us how it works? Yeah, so IBOT is a vision testing technology. It's really in the format of a kiosk that anyone can walk up to. And you go through a battery of tests. The whole thing only takes about 90 seconds.

Starting point is 00:32:09 And then within that time, you know, you punch in your, after you do the test, you punch in your name, information, email. And then it goes, all that information that gets packaged goes to the cloud. and gets paired with one of our tele doctors who then review that session and then write a script to your eyes. So you can essentially get an eyeglass prescription within minutes. So no plan, no scheduling. You just walk up. Well, one, that's fantastic. A lot of people just need to get their eyes checked once every couple of years. They're not like myself and maybe you need a little bit more. But I think we're kind of talking about the difference between an eye exam and a vision

Starting point is 00:32:43 test. And I think that for most people, those are quite literally the same thing. So can you break down what you're offering and how it might be different from people who are accustomed to getting their eyes dilated once a year. Right, exactly. So the comprehensive eye exam is really a battery of tests. So it's quite a big, a bundle of tests, actually, if you want to call it that. Sure. And it's the first portion of a comprehensive eye exam when you go to an eye doctor or an optometrist is division testing portion. So like you sort of put your head into a machine maybe. I look at a balloon. Maybe there's like a flippy lens machine that, you know, you look at and look at some letters. And there's a couple more things. But really, that's all to test the clarity of your vision. And from there,

Starting point is 00:33:29 the doctor can then tailor a prescription to you so that when you wear a pair of glasses or contact lenses, you see better, right? That's the whole point. And we've, as a human species, we've figured that out. Like, this is a really solved problem. Now, there's a second portion, actually of the comprehensive eye exam, and that is checking your eye health. So that's when you kind of do the puff test and maybe sometimes you dilate your eyes. Nowadays, actually, it's kind of falling out of favor, but, you know, kind of dilating your eyes and you actually see the back of the eye. So you see the retina. And there's a many more tests that you do to check the health of the eye.

Starting point is 00:34:10 And so like I said, the comprehensive eye exam, which I bought, you know, encourages anyone to do that on a very free basis is important. It's really essential to maintaining our health. So the eye is essentially the window to our health. It's actually one of the few spots or only spots where you can directly see your blood vessels without actually having to cut yourself. And so you can diagnose diabetes actually through a comprehensive eye exam, believe it or not. So there's many things that can be diagnosed through that. So eyes are not the window to the soul. They're the window to watching our blood pump around. Yeah, exactly. There's a tremendous amount of opportunity beyond just, you know, being able to get to a prescription. Like there's many more things that can be diagnosed,

Starting point is 00:34:57 including cancers, certain kinds of cancers or neurological issues. And that's essentially what you get out of a comprehensive eye exam. You get a full battery of things. Now the, and what we identified, and I think that resonates in general when I talk to people about this, is that getting an eyeglass prescription just to get a new pair of glasses is unbelievably hard and frustrated for people. Like it's a multi-week, multi-month process sometimes for people. Now, in many cases, people should get that comprehensive exam, but if you've broken your glasses or you have scratched lenses or you're just unhappy with your current glasses, you may actually not need to go through that whole suite or bundle of tests. Actually, all you need is,

Starting point is 00:35:44 a pair of new glasses or contact lenses, which for that you only need an eyeglass prescription. And that's really where I bought today comes in. So our technology is very mature and very accurate. And it allows people to get to that eyeglass prescription very quickly. And to the point where it's a matter of minutes where you don't need to do any scheduling or planning, you just essentially our I bought technologies and our units are in eyeglass stores. in some of the biggest, most prominent retailers like Walmart and Sam's Club. And so it allows you to just walk in, take a test, get an eyeglass prescription, and buy a pair of glasses.

Starting point is 00:36:24 You should be able to buy a pair of glasses like you buy anything. It should be that easy, right? And that's what we're doing. So, but we're not doing the health portion yet. Right. Okay. Well, we'll talk about that in a second. But this makes a lot of sense to me because whenever I now go from a yearly exam, they send me done in front of an automatic machine.

Starting point is 00:36:40 it goes and then like makes a perfect image for my eyes and then they just kind of check it and then I think well are we done

Starting point is 00:36:48 and the answer is no because I need some other stuff but like I'm amazed at how good that's become when I feel like when I was a child they really had to start

Starting point is 00:36:56 with all the flippy lenses you know it took a while to actually kind of dial it in whereas now they jumped to like the 99th percentile of it

Starting point is 00:37:04 so this makes a lot of sense to me what does a person pay to use your kiosk and then also So where do the tele doctors come into the loop? Yeah, great question. So the first question is the cost.

Starting point is 00:37:18 So it's anywhere between $0 to $25, right? So we want to not only make it unbelievably easy for people to get their eyes checked and to get an eyeglass prescription, but also we want to lower the costs so much that you really have no reason to not do this. and really unblocking and removing all the hurdles and barriers that people have to getting an essential service. Like getting a new pair of eyeglasses is like getting a new pair of shoes. It's a fundamental thing that we need. And so that's why we're really focused on this low-cost approach. The way we actually solve this is that we have business relationships with the retailer with the enterprise.

Starting point is 00:38:04 so that they have some agency on how much to charge for that prescription. In most cases, our partners actually charge $0 to the customer because it is obviously a benefit that drives people in. Absolutely. And so it's sort of this win-win solution that we have great business relationships with the retailers. The retailers get more traffic to get incremental customers and revenue. and the consumer and the patient gets a free prescription.

Starting point is 00:38:37 That's amazing. And we know that drives people in because, I mean, there's many statistics out there, but the lower third of income level in the United States is half as likely to go see an eye doctor. Yeah. Yeah. And it's a money problem, right? Like they don't have vision insurance. Half of Americans have vision insurance.

Starting point is 00:38:57 And the other half just doesn't. That was me growing up. So I'm intimately aware of this. And also I read a study that showed the. impact of going to a lower income school and giving all the kids eye exams and glasses and what happened to their reading scores. It turns out they couldn't not read. They just couldn't see. And that was one of the most heartbreaking things that I've ever read because think about these kids who don't know better and are kind of walking through the world effectively. And I say this

Starting point is 00:39:23 as someone who's really not blind, but like, you know, pretty poorly visioned, walking through the world in a day's. And so I'm an enormous fan of the idea of getting the cost down here and baking this into essentially other services to make it more available. Exactly. Ibot is here to really level the playing field. Like it's the, if you have vision insurance or not, it doesn't really matter, right?

Starting point is 00:39:45 Your co-pay is more than $25. So it's basically even for everybody in terms of cost, in terms of access, and especially we do really well in rural communities where there's frankly just no doctors around. Where there's frankly no doctors around. I mean, we talk about food deserts quite a lot and kind of modern culture,

Starting point is 00:40:02 but I think we don't talk enough about, specialist droughts or deserts as well. And like, ophthalmology is, well, you can make a lot of money doing it in big city, but I don't think

Starting point is 00:40:09 you're going to set up shop in the sticks, probably. Yeah, exactly. On the business part, though, my understanding, and I'm not mad about this. So don't take this the wrong way,

Starting point is 00:40:19 but is that when we buy a pair of frames, we're paying quite a lot of margin to the company in question. And is that margin what allows partner frames companies to essentially subsidize the cost of having the kiosk and the telehealth doctor, because I can see how that math could work out. I just want

Starting point is 00:40:37 to make sure that I'm understanding kind of the model. Oh, yeah, I guess I didn't answer your previous question on the teledoctor. So yeah, so it's our own teledoctor network, right? So we have our ophthalmologists and we have our optometrists. And yeah, they get queued in depending on which state it is. And obviously they're all licensed in the state that they work in and prescribe in. The data that we collect goes to doctors and they look at the data. We even present the data the same way in a chart, the same way they wish in their own clinic. So that's sort of the ramp up speed and time for doctors to work with eye body is very quick because they, you know, it looks like it's the same kind of layout.

Starting point is 00:41:19 And they use their clinical judgment and training and schooling to write and craft eyeglass prescription the same way they would with patients in their own clinic. Yeah. So that's the answer to the previous question. What's the doctor vibe on this? Because on one hand, I can see if I'm an ophthalmologist, I don't maybe want to see my patients less frequently, but also I don't want to be the person who's just helping people adjust their eye

Starting point is 00:41:45 prescription. That seems like a misuse of my time. And also people could also moonlight with you guys, I presume, and add to their overall clinical load. So where do doctors land in terms of viewing you as a helper versus is, um, politely a competitor. Yeah. I mean, that's, that's obviously the big question here. And that's something we're, you know, even, uh, in terms of making the industry understand about what we're doing, we're here to fill a gap, right? We're not here to displace doctors. We're not here to, um,

Starting point is 00:42:15 to, uh, you know, like take people's jobs or anything like that. In fact, what's happening right now is that, uh, the amount of the, the gap of doctors right now, uh, in terms of patients that need care is actually growing. So 10 years ago when I when I joined this industry, I think it was one optometrist would have to care for about 3 to 4,000 patients a year. Today it's one in 5,000 per year. It's almost impossible. And in 10 years, it's going to be about 8,000. One in 8,000. So it's just the amount of doctors actually is decreasing. decreasing in the United States. Is that because ophthalmology is a less attractive specialty for doctors leaving medical school and they choose residency?

Starting point is 00:43:04 Or is that just because why is it going up so fast? Yeah, there's a very rapidly decreasing pipeline into residency programs for ophthalmology. And optometry is relatively flat right now. And you could argue on the decline in terms of how many students are actually getting the boards certified per year. It's actually on the decline. So our population is growing. Yeah. Our need for eyeglasses is actually increasing because our kids are 80% more myopic than they were 20 years ago. Screen reading, exactly, like not enough outdoor time. And so those are going to, those kids are going to be adults soon. And they're going to wear glasses.

Starting point is 00:43:46 Or glasses. 100%. So yeah, if you're in the glasses, contact lens business, you know, the revenue is going up. The demand is going up. But the amount of available doctors is actually. decreasing. And that's the surprising thing. So iBot is here is simply here to fill the gap. And I think once the community understands that, and we talk to many doctors, they totally understand the need. They see it themselves. Optometrists are oftentimes with their own independent clinic booked out for weeks and months, right? And same is true for ophthalmologists. the ophthalmology is projected to have 20 to 30% fewer ophthalmologists in 10 years. And this is coming from the community.

Starting point is 00:44:32 This is not like an independent study. Yeah, yeah, yeah. It's like a red alert from some of the big trade associations in ophthalmology. It's kind of incredible how I feel like every medical specialty is just under my spouse is in medicine. So I have some insight into different specialties. And everyone has the same kind of story that you're telling me now, which is like patient loads going up. Number of available providers is flat or heading down. Everyone wants to get into something that's super specialized because it's higher value, blah, blah, blah.

Starting point is 00:44:58 No one wants to be. It's American health care, man. Yeah, exactly. Got some holes in it. What we're seeing here is that the only way to meet the demand of today and even into the future is that we need to automate healthcare and by extent. And what we're doing is automating eye care. And there's no other way. The four-wall clinic with a room full of equipment does not scale to the demand today and the demand to the future.

Starting point is 00:45:22 It's impossible. Especially if you found a place where it is mechanically done even by the doctors, as we talked about earlier, like similar technology. Okay, so what does a kiosk cost to build? I think we're all familiar with kiosks. Mostly they give us candies or whatever. Yours is a bit more technical. I presume it has a higher kind of bomb. So what does it cost to kind of put one of these into a location?

Starting point is 00:45:44 Yeah, I can't speak to like how manufacturing costs, but it is a, it is by far the most high-tech kiosk out in the world. That I can say. And it is gone through eight generations of R&D over multiple years. It is the state of the art on multiple kinds of technologies actually that you use in the optometry clinic. So we have a very advanced auto-refraction technology. We have a very advanced visual acuity system that compresses the letters. When you look inside, everything is 20 feet away visually, and your eyes have to focus at 20 feet. But obviously, the kiosk is not 20 feet long.

Starting point is 00:46:28 It looks like it's about 12, 14, 15 inches, like deep, I think. Yeah, yeah, yeah. And so the distance actually even shifts when you get through the balloon part. We also have a balloon part. That's familiar to people. and you look inside and look at the balloon and it's actually scanning your eyes while you're just standing there casually.

Starting point is 00:46:47 So it's, you know, everything is built from the ground up and developed from the ground up. And we also have a lensometry technology built in that also scans your existing glasses and extracts all those settings. And so we can transfer those settings to new pair of glasses

Starting point is 00:47:03 with, of course, adjustments that update your current settings that need to be done so that you have that, absolute best settings that you need today. I ask about the cost of building this because you are not a asset light business. Like you're not making enterprise software, right? This is a thing you have to go out and put it into the world. So with your, I think it was a $20 million series A, right? Matisse? Yes, that's correct. Yeah. So how far does that get you in terms of being

Starting point is 00:47:31 able to put kiosks out into the market? I don't know if you're sharing costs with partners or not, But what I don't know is, is this 100 kiosks or is this 10,000 kiosk? I don't even know the zeros, you know? Well, one unit makes us a good amount of money. But hundreds, hundreds of kiosks, yes. And how long will it take to build those and get them out into the market? I know that supply chains have had a rough couple of years. I'm not sure if that impacts your production process.

Starting point is 00:47:56 A little bit, but it's actually, in terms of the tariffs, it's not really been too impactful to us. It's not something that keeps me up at night. It's not a top 20 problem. Oh, wow. So it's quite down there. Yeah, yeah. And so we can really efficiently make these units now. And we have big orders coming in on containers on ships right now.

Starting point is 00:48:19 So we're patiently awaiting, you know, we just got a new place. We got a new staging and research and manufacturing facility in Boston. And we're filling that up with inventory. because we have a lot of units to put out there. Which brings us to partnerships. Now, I know you guys have talked about partnering this January with the Framery and the company behind 1-800 contacts. Who else is in your partner portfolio?

Starting point is 00:48:46 And can you work with everybody in the eyeglasses space? Because I don't see a reason why you need to pick one partner over another or have exclusivity. Yeah, I mean, we want to work with everyone, right? The selling glasses is not our business. We're in here to help do vision testing and getting people to the solution they need. Typically, that's the prescription or contact lenses. And so we're not a retailer. And so we work with retailers and provide our services.

Starting point is 00:49:16 That's as simple as I can explain that. Now, different retailers have different products they sell. Broadly characterize that between the traditional eyeglass retailers, where they sell glasses. And you actually ask the question about margin. I can, happy to talk about that too. And the AI glasses, which is a sort of a new, nascent industry that's growing now. And we're working with all of them. That's what I can share at this point.

Starting point is 00:49:45 So from the traditional big logos that sell glasses or chains and all the way to midmark and independent stores. And then in the AI glasses, which, you know, you've seen the meta ray bands and Google, of course, also came up with new versions and some other logos that I can't name are bringing out their own versions. And so all that is happening. It's the new, exciting, fast-growing market as well. And I bought us here to help unlock that bottom-like is the prescription, right? Because if you want to get a new pair of meta-ray bands or you want to get a new pair

Starting point is 00:50:24 of AI glasses, you also need to have a prescription. And people don't walk around with that in their pocket. No, and also you're talking about products that retail for a higher unit cost than your average set of frames. Admittedly, the pair that I just bought, this is my backup pair. My kids broke my main pair twice. Shout out to toddlers, just lovely people. I want to go get like an Applevision pro, but what I don't want to do is go through the ridiculous annoyance of dealing with my prescription, its intensity. But if like I was a normal person and I wanted to get a pair of those and I wore a normal prescription, I would just go to the Apple store,

Starting point is 00:50:58 stand in front of the I bought kiosk for 90 seconds, have that input it into my order. It feels like this is a thing that should be brought into the physical location of a lot of places. So I really like the approach of this. So you're going to see exactly that kind of business model in the coming months. I hope so because I don't know, man.

Starting point is 00:51:18 I'm still staring at monitors like I did when I was, you know, 10. It feels a little archaic. I would like to try something else. How is consumer reaction to this been? Because you and I clearly know, well, you know a lot. I know a little. we understand the space a little bit and how the technology works to some degree. The average person doesn't. Are they comfortable with this? Yeah. Actually, what's been surprising to us

Starting point is 00:51:38 is the kind of uptake that we're seeing in terms of demographics, right? So this is the stuff that gives me goosebumps. And this is why the entire I bought team is, if you ask anyone on our team, like, why are you working on this? It typically revolves around that the fact that we have a solution that works for so many different kinds of people. people. And what I'm saying here is like all ethnic backgrounds, all cultural backgrounds, all skin colors, all like rich or poor, educated, not educated. It doesn't matter. Rural. Rural. We see everybody. We see doctors. We see bikers. We see grandmas. We see Amish people. Right. We have Amish people getting eyeglass prescriptions from I-Bot. Like how is that possible, right?

Starting point is 00:52:25 but because there is a real, like, strong demand for this kind of service and the alternatives, of course, waiting weeks. And so that's really what gets us super excited is just the humanity of what's using this. That's one thing. That's one clear sign of something that's working for us. Now, the other thing, of course, that we always track is how happy are people with the glasses that they're using I-Bod prescription? And what we're happy to report, and we have a ton of data on this now, is that not only do we have really high MPS score or customer satisfaction scores and, you know, 80 plus scores, we also have extremely low remake rates. Remake rate is, you know, how often do people go back and say, hey, I want this prescription change. I don't like it.

Starting point is 00:53:19 We beat the industry average by a considerable amount. So if you were to compare that to like how good our doctors are, we're in the top 10% of doctors nationwide. That's fantastic. I want to go back to the this works for everyone thing. And I was going to bring this up dead last, but I'll just bring it up docs. I'm legitimately curious what you're thinking is. On the point of American health care being a little bit uneven based on who it reaches and how and the quality of care that they get and what they have access to, frames can still be relatively expensive. And I feel like what you guys have done as a company in a for-profit sense is great technology, good distribution, and I think it's a great, great product.

Starting point is 00:54:00 But for a lot of folks who don't have money or insurance or access to it, getting those prescription isn't going to be the entire process. And you guys can't take that on because that's not your job. But are there any major charitable groups or programs that you could maybe supply a handful of I bought kiosks to allow them to bring them on the back of a truck or whatever to places. where they're needed to give you guys the ability to help more people faster than you might be able to with a more traditional commercial only rollout. Yeah, exactly. So we are actually in discussions with multiple organizations, including the WHO. And I mean, there's so much opportunity overseas, right, like in the Philippines or in certain nations in Africa. Like, there's just, there's a lot of folks that need access to care. The statistic that I

Starting point is 00:54:53 saw recently is like 1.5 billion humans on this planet right now are not seeing well and all they need is a pair of glasses. It's crazy. Man, for people who don't have vision problems, they don't understand how bad that that can be. Now, not everyone has really bad vision, but like you can't read signs when you're driving. You can't see the fork you dropped. You can't see your kids smile when they look at you. Like this is a real loss. This is in 1.5 billion people is, what, 22% of the population? whatever. Yeah, exactly. And the funny thing is that as a human race, as species, you know, intelligent species, we figured out how to solve this problem. It's a curve piece of plastic that makes you then see well. And making them nowadays, and this actually goes back to your original question about like margin. This pair of glasses that I have here right now cost $5 to make. $5.

Starting point is 00:55:54 Yes. Okay. Not the highest end pair, but they work great for me. Now, of course, there are like more specialty lenses and if you're going to grow progressives, it costs more. But in general, most pairs of eyeglasses cost less than 20 bucks to make all in, right? Like sort of the general purpose ones. Then you can get up to like specialty coatings and specialty lenses, of course, but really

Starting point is 00:56:17 the coatings don't cost that much money to add. I won't say what margin that is. Don't tell me how much money I just wasted on my pair that I have coming in soon because yeah. Yeah. So making the product, making this solution, including contact lenses is actually very economical for the manufacturer to do. But then why is it still so hard to get them? This should be unbelievably commoditized and it's not.

Starting point is 00:56:47 And the big bottom leg, that's where we're stuck as a humanity is, as a species is like getting to the numbers to getting those glasses. And that is the next piece that is getting automated. You can't stop it. It's the next piece that's getting automated. It's the next piece that's getting commoditized.

Starting point is 00:57:07 Okay. And that's where it's heading. So let's be rude. Let's be rude here. Let's just go for it. So I personally, me, with the current state of AI technology, I think that right now

Starting point is 00:57:20 it makes good sense to have doctor in the loop, reviewing prescriptions in a format that they understand, making sure that it's correct, making tweaks as they need to, Viva. Fast forward three years, right? In just another couple trillion data points, will we still need doctors in the loop? Because that will be a rate limiting step to bring this to 100 million people in the Philippines, Africa, parts of Asia, et cetera, right? Yes, 100%.

Starting point is 00:57:47 So doctors need to be in the loop. And as it turns out that in our case, writing great eyeglass prescriptions is not many people know this, but it is science and also art. Like you need a tremendous amount of experience to craft well-tolerated settings. And that's really one of our big benefits is sort of this hybrid solution where we collect all the data electronically, but we still have that. experience in the back end from licensed, very experienced tele doctors. But also as far as, you know, treating goes and finding solutions, I think that will be human driven for a long time. The decision making, the agency, all of that will be doctor driven.

Starting point is 00:58:43 Like who takes the responsibility, right? Like, do we really want a computer program to just make decisions on our care and our treatment? And this is actually a broader question in healthcare, right? It is. Ultimately, I think that's kind of where the buck stops in terms of AI is like, well, who makes that decision on your treatment and care? And I think it will take a long time for humans to give up that kind of agency. And so, yeah, as far as IBOT goes, we're going to have, you know, doctors, we have doctors to review every session and deal with every session the same way it happens in a clinic.

Starting point is 00:59:27 I think there's a common misunderstanding out there about how Aibot does it. But yeah, it's the, we're effectively just kind of reorganizing the care model. Yeah. Collection that happens digitally. Yeah, I just think that for the 1.5 billion people who need them, I think they would rather have a 95% solution than a 0% because there's a chance of an issue. So I'm thinking about that versus like in Utah or whatever. But it seems like all we need is you guys to have a huge commercial success so you can donate a couple of units, get someone to make the, what's that Mark Cuban prescription drug company? Cost Plus.

Starting point is 01:00:06 Cost plus for frames and lenses. And then, you know, get some doctors to donate a block of their time every month to review scripts for. poor kids around the world and we can really change the world. But it'll come down to how big I bought can get. So tell me about what's coming up for the company. New partnerships, kiosk upgrades. What's next? Yeah, we have numerous partnerships. Probably more than I can put on my fingers today that we're going to be announcing. And yeah, so there's just a tremendous amount of pull in the market because, you know, there's just simply no doctors available. And we are a very practical drop-in to solve that problem. And that goes for the AI glasses companies and also

Starting point is 01:00:49 traditional optical. And just before I let you go, you are building in the Boston area. I'm here in Providence, Rhode Island. It is rare that I get to speak to someone who I can drive to in, you know, less than three days. So tell me about building in the Northeast and how the ecosystem is for founders, for venture capital, for just, you know, networks of people that are also interested in the same things that you are. I mean, I'm going to maybe do some hot takes here, but the, so overall Boston is a fantastic place for robotics for hardware engineers. There's been no shortage of talents in the Boston area, and we have a fantastic team. And it's sort of like if once you're in that community, once you're in the hardware community, and I used to work at a company of a forum

Starting point is 01:01:33 labs. It's a three to three printer company. That whole network has been, you know, that Boston kind of network has been super valuable for us and finding great talent and or knowing people that know people, right? That's kind of how it goes. But as far as venture capital goes, Boston does have some good VC firms. But what I would say, and this is my hot take, is that the mentality and the sort of the vision of East Coast versus West Coast venture capital is very different. So while what I mean is more that West Coast venture capital is very much dream big, you know, be disruptive, try something radically new. And East Coast is more traditional kind of capital where you need more proof and you need to have a clear business case already sorted out. And so that's kind of the differences.

Starting point is 01:02:29 And depending on where you are or what kind of business you're building, one of the other is better. but for something extremely ambitious as I bought, West Coast type VC just is better suited. Well, I'm an Oregon boy living on the East Coast, so I like it either way. I'm just glad to see companies building outside of like, you know, eight square blocks in Soma in San Francisco, a neighborhood that I love, a neighborhood where I used to work.

Starting point is 01:02:49 But it's not the entire world. And I think as we think about all the problems that we need to fix, I think we're going to need to have more centers. So I'm glad you're making your footprint in Boston. Maybe you can teach those VCs how to be a little bit more freewheeling with their checks. But in the meantime, Matias, what's the website? And is there a role you're looking to hire for?

Starting point is 01:03:06 You love to shout out to the audience. Yeah, so we're looking for more salespeople. We're looking for more marketing people. We're looking for more R&D engineers. We're looking for more scientists. We're looking for more across the board, right? Certainly. That's, I would say in that order.

Starting point is 01:03:26 Yeah. And our website, yeah, it's iBOT.co. So, E-Y-E-B-O-T-C-O. All right, well, announce those partnerships and then come back and tell us all about them. But in the meantime, Matias, thank you so much. You can go out there and save the world, please. Thank you.

Starting point is 01:03:42 Awesome. Thank you.

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