Sankaet Pathak, the founder of the beleaguered fintech startup Synapse, is forging ahead with a new venture in robotics despite ongoing controversies surrounding his previous company. Pathak’s latest endeavor, Foundation, has already attracted $11 million in pre-seed funding, buoyed by notable investors including Tribe Capital and various angel investors.
Foundation’s Ambitious Vision
Foundation aims to revolutionize the robotics industry with a mission to develop advanced humanoid robots capable of operating in complex environments. The startup’s primary objective is to address the labor shortage by automating tasks that currently require human intervention. Pathak, who has been vocal about his new venture, emphasized that Foundation seeks to “automate GDP through AI and robotics to free people from labor jobs, allowing them to pursue their passions.”
According to Pathak, Foundation is focused on overcoming significant technical challenges in robotics. In a recent social media update, he outlined that the company is working towards a near-term goal of developing a walking humanoid robot by the end of the year. Pathak also asserted that Foundation’s model currently excels in scene depth, object detection, semantic segmentation, and unseen object pose estimation—claims that he believes set the company apart from existing technologies, including those used in autonomous vehicles.
Controversy Surrounding Synapse
The launch of Foundation comes on the heels of Synapse’s tumultuous end. The fintech company, which specialized in embedding banking services into other platforms, faced severe financial difficulties that led to its Chapter 11 bankruptcy filing in April 2024. The company, based in San Francisco, had raised over $50 million in venture capital throughout its life cycle, including a significant $33 million Series B round in 2019 led by Andreessen Horowitz.
As of July 2024, Synapse’s bankruptcy has left millions of customers—many from fintechs that integrated with Synapse—unable to access nearly $160 million in deposits. The unresolved issue of these missing funds has created a cloud of controversy around Pathak and his previous company. Despite this, Pathak is undeterred and is pushing forward with his new robotics venture.
In a recent statement, Pathak has publicly criticized Synapse’s former partner, Evolve Bank, accusing them of responsibility for the financial shortfall. In an August 20 post, he urged Evolve to start addressing customer payouts and cover the deficits attributed to them. Pathak has made available information on these shortfalls, inviting regulators, media, and affected customers to contact him directly for further details.
Foundation’s Funding and Strategic Direction
Foundation’s recent fundraising efforts have been noteworthy, with Tribe Capital leading the pre-seed investment round. Tribe Capital’s co-founder and managing director, Arjun Sethi, is also a co-founder of Foundation. This relationship underscores the significant backing Foundation has received, despite the financial controversies associated with Pathak’s previous enterprise.
Pathak’s ambition for Foundation is to deploy a substantial fleet of humanoid robots, a strategy he believes is critical for success in the robotics field. He emphasizes that achieving this goal requires a combination of advanced software, hardware, and the right infrastructure. Pathak’s vision reflects a broader trend in the robotics industry, where the integration of AI and robotics aims to tackle complex real-world challenges.
Industry Reactions and Future Outlook
The robotics industry has mixed views on the feasibility of general-purpose humanoid robots in the near term. As noted by TechCrunch’s hardware editor, Brian Heater, there are significant engineering challenges that must be overcome. Despite these hurdles, Pathak’s bold claims about Foundation’s technological capabilities have garnered attention and raised expectations for what the company might achieve.
The skepticism surrounding the near-term development of advanced humanoid robots is balanced by Pathak’s confident projections. He believes that Foundation’s technological advancements position it to lead in the robotics sector, particularly in addressing the labor shortage and automating complex tasks.
Conclusion
Sankaet Pathak’s new robotics venture, Foundation, marks a significant shift from his previous fintech endeavors. Despite the unresolved issues surrounding Synapse’s financial situation and the missing customer funds, Pathak is moving forward with a vision to advance robotics and AI technology. Foundation’s ambitious goals and substantial funding reflect both the potential and the risks associated with cutting-edge technological innovation.
As the robotics field continues to evolve, Foundation’s progress will be closely watched by industry observers and investors alike. The success of Pathak’s new venture could provide valuable insights into the future of humanoid robotics and its role in addressing pressing societal challenges.
With Foundation’s focus on integrating AI and robotics to automate labor-intensive tasks, Pathak is setting the stage for a new chapter in technological advancement. Whether Foundation can overcome the engineering challenges and deliver on its ambitious goals will be a key factor in determining its success in the competitive robotics landscape.