Amazon-backed robotics startup BionicHIVE shuts down with $18M debt
Amazon-backed robotics startup BionicHIVE shuts down with $18M debt
The Sderot-based company blames war and lost investor confidence for its financial collapse.
The Israeli robotics manufacturer BionicHIVE has accumulated debts of approximately NIS 66 million (approximately $18 million) and has filed a request with the Be'er Sheva District Court for liquidation, alongside a stay of proceedings and the appointment of a temporary trustee. The company gained international recognition in January 2021 after billionaire Elon Musk praised its technology on Twitter, writing that "The robot future is coming".
Judge Yaakov Persky approved the company's request and issued an order halting all proceedings. This means that no legal actions can be initiated against the company, nor can its debts be collected. The judge also ruled that a temporary trustee would be appointed, with their identity to be determined in a hearing scheduled for Monday.
According to BionicHIVE, its financial collapse was directly caused by the effects of the “Swords of Iron” war on the Israeli economy, particularly on the high-tech sector, which relies heavily on investment capital. The company stated that, despite significant efforts, it struggled to recover due to its primary funding pipeline—investment from foreign investors—being cut off. This was attributed to investors' reluctance to invest in Israeli companies during the conflict. Additionally, the company cited other war-related circumstances that resulted in a severe cash flow shortage, preventing it from continuing operations or meeting financial obligations.
BionicHIVE, a privately held company based in the city of Sderot, was founded in 2014 by Liran Raizer, Itamar Levy, Tomer Amit, and Olivier Haddad. At its peak, the company employed 30 workers. Among its significant investors is the global e-commerce giant Amazon. “Amazon has recognized BionicHIVE for its differentiated solution capable of optimizing safety around repeated tasks, at any height, in the supply chain workplace, and this is the kind of technology that’s pulling innovation forward,” said Katherine Chen, Head of the Amazon Industrial Innovation Fund, at the time.
Since its establishment, the company has focused on developing robotic systems for warehouses and logistics operations. Its flagship product, SqUID, is an advanced robotic system designed to automate the collection, organization, and distribution of goods in logistics warehouses. According to the company, the system is unique in its ability to convert a manual warehouse into an automated one with minimal investment while maintaining seamless collaboration between human personnel and robots. The robots operate autonomously on the warehouse floor and, when required to reach elevated locations, attach to rails installed on the shelves. This allows them to replace human workers in picking, organizing, and storing tasks at any height or location.
The company, represented by attorneys Mazal Maru and Guy Azulay from the Agmon & Tulchinsky law firm, stated that it has raised approximately $15 million from investors since its founding, along with an additional $3 million from the Israel Innovation Authority. As of now, the company has developed around 30 robots, which it claims have significant business potential.
BionicHIVE also revealed that, prior to the outbreak of the war, it was in advanced negotiations to secure additional investments and finalize agreements with existing customers for the commercial distribution of its next-generation robot systems. However, operations were abruptly halted when the company's offices in Sderot were closed due to the area being declared a military zone. Many employees, including two of the founders, were evacuated from their homes, and some were called up for military service.
As part of its court filing, the company disclosed liabilities totaling approximately NIS 66.6 million, with the majority (around NIS 65 million) owed to various investors and NIS 700,000 owed to employees.
