Bankruptcy Wave Hits Robotics Hardware Startups: iRobot, Luminar, Rad Power

The recent bankruptcies of iRobot, Luminar, and Rad Power Bikes signal a troubling trend in the robotics hardware sector. According to TechCrunch, these companies have faced a combination of tariff pressures, supply chain issues, and shifting market dynamics that have made it difficult for them to sustain operations. iRobot, known for its Roomba vacuum cleaners, was reportedly on the brink of being acquired by Amazon before its financial troubles escalated.

Meanwhile, Rad Power Bikes struggled with reliance on Chinese supply chains, which contributed to its downfall. This wave of bankruptcies serves as a warning for other hardware startups, emphasizing the difficulties of manufacturing physical products in a challenging economic landscape.

TechCrunch's Equity podcast discusses these issues further, shedding light on the challenges that hardware companies face today.