Author: Andrew Kang

Translation: Deep Tide TechFlow

Deep Tide Summary: Robotics companies are moving from concept to real orders and shipments. Andrew Kang's shareholder letter reveals key progress in portfolio companies such as Standard Bots, Figure AI, and Path Robotics. The letter repeatedly emphasizes the disconnection between private valuations and fair value, which is a signal that cannot be ignored for investors focused on physical AI.

August 20, 2026

Shareholder Letter - August 2026

Andrew Kang

To the shareholders of RoboStrategy, Inc.:

It has been just over three months since RoboStrategy went public on May 11. From April 30 to July 31, NAV increased by 85%, and the NAV per share increased by 54% (1). Most of the growth came from value-added financing to institutional investors. I personally invested an additional $10 million into the fund at a market premium of approximately $36.7 per share. Although we are seeing a significant increase in investor demand and growth in portfolio companies, NAV pricing is still anchored to the last round private market valuation. We believe that private financing rounds may not fully reflect the fair value of private companies, and the disconnection between private market valuations and fair values may persist. A recent datapoint is Unitree's IPO, which opened with a market value of $66 billion (2) - approximately 39 times its last venture capital valuation of $1.7 billion (3), and seven times its IPO price (4). This value difference may not represent the overall market situation. Unitree is currently not in RoboStrategy's portfolio, but it perfectly aligns with our investment focus and may be included in the portfolio in the future.

Since our public listing, we have invested $124 million in 6 companies, increased our holdings in Standard Bots and Dexmate, while also making new investments in Nox Metals, Eccentric Machines, Prometheus, and a robotics company set to emerge from stealth mode (5). As we scale up, we are more inclined to lead investments in those companies we have the most confidence in. So far, we have led investments in Dyna Robotics, Standard Bots, Eccentric Machines, REK, and a stealth robotics company (5). As a lead investor, we are fortunate to work more closely with these truly outstanding founders. For RoboStrategy shareholders, this means the fund may benefit from the terms negotiated as lead investors. These lead terms may include board seats, information rights, pro-rata co-investment rights, warrants, preemptive rights, and additional investor protections.

The industry has undergone significant changes, such as the U.S. banning foreign mobile robots through the FCC, the rise of open-source models, and an accelerated timeline for developing robotic foundational models - all of which we predicted in advance. This positions our portfolio favorably, turning these changes into tailwinds rather than headwinds. Many of our portfolio companies have moved from pilot phases into growth phases, with substantial progress in real deployments and shipments.

Portfolio Highlights

Standard Bots is the largest AI-native industrial robotic arm manufacturer in the U.S. (6). We led its $200 million Series C funding round at a valuation of $1 billion (7). They expect to deliver 10% of the new industrial robot deployments in the U.S. next year. Their robotic arms are already in use in hundreds of companies across nearly every state. Their factory in Glen Cove will expand to 70,000 square feet to meet demand. In June of this year, CEO Evan Beard attended a roundtable on U.S.-first industrial policy hosted by Secretary of Commerce Howard Lutnick and White House Trade Advisor Peter Navarro. He was the only founder of a U.S. robotics company in the room. Politico recently reported that the Department of Defense's Strategic Capital Office is underwriting a financing deal for Standard Bots.

Figure AI has begun ramping up the production of Figure 03, with humanoid robot production surpassing 1,000 units in July (8). Their existing BotQ factory has an annual production capacity of 12,000 robots. CEO Brett Adcock stated the goal is to reach an annual production of 1 million units within a decade. Figure has expanded from its initial pilot with BMW to more complex sorting applications in logistics at the BMW Spartanburg plant (9). They have signed a commercial agreement with Catalyst Brands for large-scale deployment of humanoid robots. Catalyst operates iconic brands such as JCPenney, Aéropostale, and Brooks Brothers.

Apptronik has opened Robot Park (10) in Austin, Texas, a new 90,000 square foot data collection facility designed to train Apollo 2 in collaboration with Google DeepMind. Apollo 2 continuously generates training data to train and optimize Gemini Robotics models, preparing commercial fleets for real-world deployments. Apollo 3 is expected to become the first fully commercialized, mass-produced product, aiming for a 2027 launch. They have also hired Waymo's former product head, Daniel Chu, as CPO, as well as executives from Boston Dynamics and Amazon.

Dyna Robotics released DYNA-2, its flagship world-action model trained on over 1 million hours of human video, estimated to be two orders of magnitude higher than the human video data of previous robotic foundational models. DYNA-2 demonstrates a scaling law from humans to robots, with the core finding being that robotic performance improves smoothly and predictably with more human data, without plateauing. The model breakthrough brings trainability and physical capabilities to the agents, combined with strengthened robotic hardware, placing them in a favorable position to win broader deployment markets.

Dexmate has become the leading humanoid robot vendor in the U.S., having shipped hundreds of units. They are featured in almost every major physical AI team, with clients including Nvidia, Amazon, Google, LG, Skild AI, Generalist, and top university laboratories such as UC Berkeley, Carnegie Mellon, Harvard, Columbia, and NYU. We led their seed and Seed Plus rounds, with post-investment valuations of $123 million and $216 million, respectively, as we believe that a U.S. company has the opportunity to replicate Unitree's business model by providing a high-quality humanoid robot platform for developers and researchers, and they are indeed executing this.

Path Robotics signed a performance-based production agreement (11) with HII, involving up to $600 million in shipbuilding work, aiming to deploy advanced robots in U.S. Navy shipbuilding projects. This is one of the largest contracts ever awarded to a physical AI company. Path also launched Rove, a welding quadrupedal robot that can move to the workpiece instead of bringing the workpiece to the robot. This is the only method to achieve welding automation on structures too large to fit into work units, making it very suitable for shipbuilding. Saronic, which has raised over $2.5 billion for building autonomous vessels, will receive the first Rove units in Q1 2027.

Eccentric Machines is building Sentor, an AI-native actuator that replaces the standard "single gear motor" architecture with a new form of motion that can directly respond to unexpected loads at the joints, rather than waiting for the robot's central brain to process. Solving this issue could bring robots closer to reflex capabilities, embedding the subconscious layers of physical AI into the joints, much like biology does. Sentor's design considers manufacturability and addresses some of the most critical performance, efficiency, and mechanical trade-offs faced by modern actuators.

REK held what is reportedly the first six-foot humanoid robot fight in the U.S. this month at its San Francisco venue, attracting a group of athletes and creators. Previous events sold out a venue with 2,500 seats, and REK is now seeking venues several times larger than this.

GMI is building a $500 million AI factory in Taoyuan, with about 7,000 Nvidia GB300s distributed across 96 racks, generating 16MW, processing nearly 2 million tokens per second. It has also launched a $12 billion sovereign AI infrastructure initiative in Japan and is co-developing a global sovereign AI factory network with Magna AI.

Nox Metals completed a $11.5 million seed round funding after about seven months of establishment, with participants including Palmer Luckey, Y Combinator, and us. Nox has been cutting custom aluminum for approximately 100 customers nationwide, from small machine shops to Anduril and SpaceX, and is moving into a 75,000 square foot factory in Detroit to meet demand.

Team Growth

Our goal is not just to build a passive investment tool. We want to establish a high-level investment institution that creates excess value for the RoboStrategy, Inc. fund. We aim not only to deeply understand the companies and industries we invest in, but also to leverage our expertise in media to help portfolio companies convey their stories to more potential customers, talent, and investors. Since our establishment, we have built the core of our marketing engine, covering short video content on X, high-production videos on YouTube, as well as long-form research papers and investment theses. Our own content has garnered over 20 million impressions on X, and our team's media appearances have amassed over 1.5 million views across various channels. Our reports have been cited by Bloomberg, Reuters, CNBC, TechCrunch, BBC, and Yahoo Finance. In the coming months, we will roll out comprehensive coverage across various channels, including in-depth reports, industry short films, expanding content creator and influencer relationships, growing newsletter subscribers, live streaming, and podcasts covering all content related to robotics and physical AI. We plan to expand beyond the core English audience to build a global influence, initially targeting countries such as South Korea, Japan, Taiwan, and China. The goal is to become the primary source of information for all dynamics in the robotics field.

The RoboStrategy Advisors team has grown to 14 people, and is expected to expand to 17 by September. Functional departments now cover investment, research, marketing, compliance, finance/operations, and legal/policy. The U.S. is formulating a national robotics strategy. This month, the FCC issued a notice banning the import of new foreign mobile robot models. The government can and will take many measures to boost the development of domestic companies, potentially including long-term debt financing programs, direct investments, and tax incentives. We hope to share our insights with policymakers alongside those of our portfolio companies. To that end, Bill Hughes has joined us as Vice President of Legal and Policy. Bill previously served as Deputy Assistant Attorney General at the U.S. Department of Justice and was a Special Assistant to the President at the White House.

We are also forming an institutional capital formation and distribution team. Robotics will attract the growing interest of various investors, and I believe our fund offers a unique value proposition that will be appealing to RIAs, private wealth platforms, and various institutions. These capital channels are currently untapped by us, but have always been core growth channels for most large asset management firms. Approximately $200 billion flows into semi-liquid asset funds from private wealth channels each year (12). Expanding the scale of our fund will enable RoboStrategy to dominate more financing rounds, benefiting both our invested companies and shareholders, while also strengthening our distribution engine.

About Research

To underwrite an investment, you need to form a clear judgment on a large number of interrelated technological trends in order to accurately assess risks and returns. The growth prospects of a robotics foundational model company depend not only on the strength of its researchers and models but also on the trajectory of open-source models, the feasibility of cloud-based models across different environments, and numerous variables affecting robotic production capacity, such as the feasibility of innovative new actuators and the supply elasticity of gear grinders produced by a few small companies. These gear grinders are the bottleneck for harmonic reducers, which are key components in many robotic forms. We plan to publish some of this research to share knowledge with the world and enhance our brand and influence. Our investors know we adhere to high standards in investment due diligence and extend this standard to all our work.

Industry Outlook

The first half of this year has sounded the alarm for the venture capital industry. People have realized that the scale of venture capital in the pure software field should be significantly reduced, while investing in companies building the atomic world can yield extreme power law returns. We have heard internal and external pressures from many investment firms' LPs calling for a reallocation of strategy. Sometimes investors need undeniable evidence, and companies like SpaceX and Anduril that are entering the growth stage have already provided such proof. In fact, SpaceX alone has created about $2 trillion in liquidity events (13) for investors and employees, potentially driving significant downstream funding towards other deep tech companies.

Compared to the previous few quarters, venture capital in the robotics sector significantly increased in the first quarter, reaching the highest level in the chart. However, venture capital investments in the robotics field are still only a small portion of the venture capital in the AI sector before the emergence of ChatGPT in 2021. This is the inflection point for financing in the industry, and we expect the robotics field to catch up with AI in the coming years.

We believe it is a good time for fund investments in private robotics companies, but financing for some companies is getting out of control. Discernment is crucial. Differentiation is key. The rising tide is currently lifting many boats in the field, but many companies building towards the wrong goals or lacking necessary talent may run aground even if the tide does not recede. Winner valuations continue to climb, while some overhyped participants hit walls; both situations can exist simultaneously. We have seen this in the AI sector over the past four years.

The deployment of industrial capacities is entering the early scale-up stage. We believe many key architectural issues of robotics foundational models have been largely resolved, and this year the focus is mainly on expanding the scale of data collection and processing. I believe we have always been in the era of GPT-3, and the emergent intelligent capabilities of the physical version are becoming apparent and will accelerate towards GPT-5 level performance next year. These emergent capabilities include contextual learning, memory, and natural language instruction following. Researchers have grasped the overall approach to achieving general physical intelligence. We are about to encounter a significant unlock, greatly enhancing sample efficiency post-training, reducing deployment time for robots on any specific task from weeks to hours or even minutes. There will not be a ChatGPT moment for robots; it will look more like autonomous vehicles. Not recognized suddenly one day globally, but new types of autonomous machines of various shapes and sizes will quickly permeate. By next year, intelligence will no longer be the bottleneck; the real bottleneck will be the robots themselves. If you have any questions, please feel free to contact the RoboStrategy team. Thank you for your support.

Andrew Kang

Chief Executive Officer

Notes:

1 RoboStrategy, Inc. supplementary prospectus (Form 424B3), submitted to the SEC: Supplementary document submitted on August 13, 2026 (NAV per share as of July 31, 2026, $11.32); Supplementary document submitted on July 8, 2026 (NAV per share as of June 30, 2026, $10.51); Supplementary document submitted on June 24, 2026 (NAV per share as of June 22, 2026, $8.92).

2 "Unitree Robotics surges 629% on first day of trading in Shanghai, market value reaches $66 billion," South China Morning Post, August 19, 2026.

3 "Chinese robotics manufacturer Unitree valued at $1.7 billion in Series C funding," Forbes, June 20, 2025.

4 "Chinese humanoid robot manufacturer Unitree IPO valued at $9 billion," CNBC/Reuters, August 6, 2026.

5 Supplementary prospectus (Form 424B3) submitted by RoboStrategy, Inc. to the U.S. SEC on August 13, 2026. This document discloses a portfolio investment under confidentiality obligations, to be named publicly after the company announces the financing round.

6 Standard Bots company website, standardbots.com, accessed on August 21, 2026.

7 "Standard Bots completes $200 million Series C funding at a $1 billion valuation, expanding U.S. manufacturing of AI-native industrial robots," PR Newswire (official press release), June 9, 2026; see also The Robot Report linked above.

8 Brett Adcock (@adcock_brett) posted "Headcount vs Robots" on X, 2026.

9 Figure AI, "F.03 at BMW," figure.ai (see the link above).

10 Forbes, "Apptronik announces Robot Park," June 30, 2026 (see the link above).

11 HII, "HII signs performance-based production agreement with Path Robotics and Graymatter Robotics" (see the link above; total agreement value up to $900 million); "Path Robotics secures up to $600 million share in $900 million U.S. Navy shipbuilding mega deal," Ohio Tech News, 2026 (source for Path Robotics’ specific $600 million share).

12 "Alternative asset fundraising nears $200 billion in 2025; credit strategy dominant," AltsWire, citing Robert A. Stanger & Co., 2025/2026.

13 "SpaceX IPO highlights: SPCX closes at $161, surging 19% post-record debut," CNBC, June 12, 2026.

Before investing, carefully consider the investment objectives, risks, fees, and expenses of RoboStrategy, Inc. The fund's prospectus contains this information and other relevant details, available at RoboStrategy.co or call (787)722-6881. Please read the prospectus carefully before investing.

Past performance is not indicative of future results. Net asset values and market prices fluctuate, and current performance may be higher or lower than the numbers above.