Carbon Robotics raises $20M to build new AI farming robot

Carbon Robotics has raised $20 million in a D-2 extension round led by Giant Ventures to develop what founder Paul Mikesell describes as “another AI robot” beyond their flagship LaserWeeder system. The funding underscores continued investor confidence in agricultural automation despite broader agtech investment challenges, with the company targeting a new undisclosed product that will leverage their existing artificial intelligence technology.

What you should know: The new funding will support a completely separate product from Carbon Robotics’ autonomous LaserWeeder, though specific details remain under wraps.

• Mikesell describes it as “a targeted incisive bet we’re making to build something” that reuses their existing AI technology for additional farming applications.
• The company continues expanding their LaserWeeder line, including a six-foot machine launched in February 2024 that targets smaller farming operations.
• Carbon Robotics maintains direct sales relationships with customers rather than working through agricultural dealerships, citing better customer relationships and technical support capabilities.

Why weeding dominates farm automation: The repeatability of weed control across multiple crop types gives it significant advantages over more specialized tasks like harvesting.

• “With weed control, you can kill weeds in carrots and onions and broccoli and cauliflower and lettuce and spinach [with the same machine],” Mikesell explained. “Versus say a harvesting robot that would be very specific to those crops.”
• Harvesting remains challenging because machines are so crop-specific, though Mikesell notes that “some of the big growers really want harvesting robots.”
• Other promising automation areas include UV pest control and sorting/grading applications using computer vision technology.

Scaling to smaller farms: Carbon Robotics is gradually expanding their technology to accommodate smaller farming operations through modular architecture.

• Their six-foot LaserWeeder has found success on farms as small as 50 acres, with machines typically paying for themselves within one to three years.
• The company may develop even smaller robots for operations under 50 acres, potentially using one or two modules from their G2 modular system.
• For very small farms around 10 acres, ROI becomes challenging even with smaller machines due to limited field coverage opportunities.

Direct sales strategy: The company avoids agricultural dealership networks, preferring direct customer relationships and technical control.

• Mikesell hasn’t found dealership networks that provide meaningful value, noting that the technology’s complexity requires specialized maintenance and repair capabilities.
• He warns other agtech companies about exclusive territory agreements with dealers, citing examples where companies “locked themselves out of their own market” when dealers failed to perform.
• Carbon Robotics scales through direct sales teams across the United States, Europe, and Australia, managing higher travel costs for better customer control.

What they’re saying: Mikesell offers strategic advice for agtech startups navigating the current funding environment.

• “You need to position yourself correctly. For us, we’re an ‘AI robotics company.’ Because if you come to a funding source, a venture capitalist, and you start talking about agriculture, most of the time they don’t know what you’re talking about.”
• “Getting your customers to speak for you, I think, is the number one thing that has worked well for me—not just in agriculture, but across probably all of my companies.”
• “If you’re going to start a fire, you need to start with some kind of kindling. And that was the number one kindling to get things going, to just get people who can talk about [your product].”

Manufacturing expansion: Carbon Robotics has brought manufacturing in-house and established European production capabilities.

• The company moved from contract manufacturing to internal production, significantly improving margins by eliminating third-party manufacturer fees.
• A new manufacturing line in the Netherlands serves European customers locally, accelerated by tariff considerations.
• The manufacturing diversification helps balance production capabilities across different markets.

Future outlook: The company’s AI and computer vision technology positions them for potential expansion beyond agriculture.

• Mikesell anticipates eventual expansion to other industries, noting their neural networks “do the world building inside the AI” and can “understand the world around the machine and then take action.”
• The technology’s applicability to multiple sectors could help balance the cyclical nature of farming revenue.
• Current focus remains on scaling their agricultural AI team and engineering capabilities for the undisclosed third project.