How Robotics and Automation are Reshaping Business: Fady Saad on Talent, Technology and Growth

Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics, is a celebrated entrepreneur and visionary in the realm of robotics and AI. With a proven track record of fostering innovation and driving growth, Saad's expertise lies in his ability to align talent and business strategies, leveraging cutting-edge technology to propel companies forward. His insights have shaped the trajectory of numerous robotics and automation startups, positioning them for success in an increasingly digital world.

Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of Mass Robotics

I recently sat down to chat with Saad about future of work trends as part of my research to produce Season 1 of The Lever with Drew Fortin. This show highlights how the rise of artificial intelligence (AI), robotics, and Web3 will shift the paradigm of humans at work for the better. I wrote this article based on my notes and transcripts from the interview. You can also watch a video of my interview with Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics, below.

Journey to Building and Scaling Companies

Saad, originally from Egypt, embarked on a remarkable journey that led him to become a passionate advocate for building and scaling companies. Armed with a background in mechanical engineering from the American University in Cairo, Saad began his career at Siemens, where he gained valuable experience in project management, marketing, and business development strategy. As the company merged with Nokia, creating Nokia Siemens Networks, Saad's expertise expanded as he traveled throughout North Africa and Europe, honing his skills in various functional domains.

However, after eight years in the corporate world, Saad realized his true calling lay in helping small companies and the art of building and scaling them. Intrigued by the notion of viewing companies as complex systems, he delved into extensive research on systems design. This pursuit eventually led him to the prestigious System Design and Management program at MIT, a joint initiative between the Sloan School of Management and the School of Engineering.

In 2011, Saad made the life-changing decision to leave his job and relocate his family from Egypt to the United States, immersing himself in the vibrant city of Boston and the intellectual atmosphere of MIT. Here, he embarked on a transformative journey, exploring the intersection of entrepreneurship, management, system design, and innovation. During this time, Saad took a leap of faith and started his own company, inspired by the belief that the best way to understand companies is to create one. Collaborating with a fellow student, he launched the venture, which, while not achieving monumental success, provided invaluable learnings and insights into the entrepreneurial landscape.

"It was an amazing experience and I actually started the company while in the program because I came across a book that said that the best way to learn about companies is to start one."  - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Upon completing his graduate studies at MIT, Saad delved into the robotics ecosystem in Boston, joining a local company involved in government grants and cutting-edge technology development. This experience shed light on a global issue: the challenge of commercializing robotics technologies. Saad recognized that despite the abundance of incubators and accelerators, there was a dearth of resources tailored to robotics and hardware-based ventures.

Saad's journey has been marked by a relentless pursuit of knowledge and an unwavering dedication to uncovering innovative solutions. Through his unique blend of engineering, management, and system design expertise, he continues to empower growth and success, aligning talent and business strategies while leveraging technology to drive sustainable change. Saad's story inspires aspiring entrepreneurs seeking to navigate the complexities of building and scaling companies in a rapidly evolving world.

Accelerating Commercialization and Championing Early-Stage Robotics Funding

Saad's deep passion for driving the commercialization of robotics technologies was palpable. He recognizes the unique challenges faced by startups in this field. Drawing inspiration from his own experiences, he co-founded MassRobotics, an organization dedicated to creating a thriving ecosystem in Boston that would expedite the path to market for robotics companies.

At MassRobotics, Saad played a pivotal role in shaping the organization's business model and establishing strategic partnerships with corporate entities. Utilizing his expertise in fundraising, he led successful efforts to secure funding for the organization, facilitating its growth into one of the largest hubs for robotics startups in the United States.

Recognizing a gap in early-stage funding tailored to robotics ventures, Saad embarked on a new venture and co-founded Cybernetix Ventures. This $50 million fund focuses on providing pre-seed and Series A investments to promising robotics companies, filling the void between the software as a service (SaaS) and biotech sectors.

Teaming up with Mark Martin, a former VP at Analog Devices with extensive experience in industrial automation, Saad launched the firm, making significant investments across both the United States and Europe.

"Wow, there is a problem in commercializing robotics technologies and in the US and later on I realized it's worldwide." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Through his relentless dedication and entrepreneurial spirit, Saad continues to empower robotics startups, championing their growth, success, and access to early-stage funding. His endeavors have not only shaped the robotics ecosystem in Boston but also fostered innovation on an international scale.

Tackling Problems in Robotics with Entrepreneurial Spirit

Saad has been at the forefront of tackling some of the popular problem spaces in robotics today. With a keen understanding of the challenges faced by different verticals, Saad has identified key areas where robotics can make a significant impact and drive innovation.

Manufacturing and logistics are among the top problem spaces that are being addressed by robotics. Saad recognizes the need for automation to evolve and embrace robotics and smart machines to enhance productivity, efficiency, and safety in these industries.

Another nascent vertical that Saad has been championing is construction. Understanding the labor shortage, the need for increased productivity, and improved working conditions, Saad has been instrumental in fostering the adoption of robotics in the construction space. Today, half of Cybernetix Ventures' portfolio comprises robotics startups in the construction industry.

Healthcare, medical devices, and biotechnology are also emerging problem spaces where robotics can play a transformative role. Saad envisions leveraging robotics to expedite drug discovery, create closed-loop systems for testing and formulation, and automate repetitive tasks in labs and healthcare settings. The maturity of robotics technology and the lessons learned during the COVID-19 pandemic have further emphasized the potential of robotics in healthcare.

Through Cybernetix Ventures, Saad has already invested significantly in these problem spaces, supporting companies like Land, Florida Path, and Imago Rehab.

"There is a lot of repetitive tasks in biomanufacturing and healthcare in general. Technology has reached a level of maturity that we can do a lot here." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Saad's entrepreneurial spirit and dedication to driving innovation have positioned him as a leader in the robotics industry. He empowers growth and success in the robotics sector by focusing on problem spaces and aligning talent and business strategies.

Robotics as a Catalyst for Reshaping Manufacturing and Automation

Saad recognizes the transformative potential of robotics in bringing manufacturing back to the United States. He asserts that robotics and automation are critical enablers in revitalizing domestic manufacturing.

Although China currently leads the market in robotics and automation, it's widely known that the Chinese economy needs to shift away from labor-cost competitiveness and embrace technology-driven solutions. Saad believes that the next frontier of competition lies in speed, cost-effectiveness, accuracy, and precision, with advancements in robotics technology paving the way.

Machine vision technology, capable of distinguishing minute details even in transparent items, has made significant strides in Europe. This progress opens up possibilities for handling delicate components such as transistors, zippers, and transparent tubes used in biotech and lab testing.

"The technology is getting there in terms of allowing robots to be more precise, faster, more compact, and safer to be around. We have machine vision technologies that may be getting close to human capability and even better." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

While technological advancements in robotics are promising, Saad highlights a persistent challenge—the disconnect between manufacturers seeking robotics solutions and the innovators creating those products. To address this, he emphasizes the importance of understanding the problems faced by manufacturers and working collaboratively to develop targeted solutions.

Saad's approach, which focuses on engaging with markets and collaborating with key corporate players, ensures the alignment of technology and business strategies to tackle real-world challenges. By bridging the gap between manufacturers and innovators, he drives the adoption of robotics technologies that empower growth and success in the manufacturing sector.

Embracing the Evolution of Robotics and AI for a More Human Experience

Saad advocates for integrating robotics and AI into our society and addresses common concerns and misconceptions surrounding their impact on jobs and human existence. Drawing from historical examples of technological advancements, he emphasizes that the rise of robotics is a natural evolution in improving economies and industries.

It is crucial to distinguish between robots and humanoids. While popular media often blurs this distinction, robotics represents the realm of smart machines and automation rather than humanoid beings. Saad highlights the importance of understanding this fundamental difference to alleviate unnecessary fears and negative perceptions of robotics.

Throughout history, humanity has witnessed significant shifts due to technological progress. From the invention of the wheel to using animals as motors and later the development of engines and automobiles, industries have transformed and displaced specific job sectors. Saad suggests that the current evolution in robotics and AI is no different and should be considered part of our ongoing quest for increased productivity, efficiency, and improved working conditions.

"There is no doubt the technology is getting there, but a key problem that have seen consistently is the disconnect between the manufacturers, the people who need robotics and automation and the people who create the products, the innovators." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Automation and robotics offer the opportunity to eliminate repetitive, dangerous, and dirty tasks, allowing humans to focus on more meaningful and fulfilling experiences. By offloading mundane responsibilities, individuals can engage in higher-level thinking and explore their potential.

Integrating robotics and AI aligns with humanity's hunger for progress and improvement. Rather than succumbing to fear, Saad encourages us to perceive this evolution as a pathway toward creating a more human-centered society free from monotony and hazard.

A Paradigm Shift in Work and Productivity

Saad believes that the integration of technology in the workplace offers a unique opportunity to redefine the concept of work and enhance productivity. Despite advancements in automation and machine learning, he emphasizes the need for human supervision to ensure quality and consistency.

As machines take on repetitive tasks, humans can transition into roles supervising and collaborating with these technologies. Saad acknowledges that while machines have made significant progress, they are not yet reliable or accurate. This reliance on humans for supervision allows individuals to move away from monotonous and dangerous tasks, enabling them to engage in higher-level thinking and find meaning in their work.

Reflecting on the traditional Industrial Revolution work model, Saad highlights the limitations of measuring productivity solely based on hours spent in the office or items processed per minute. He urges managers to reconsider these outdated methodologies, especially regarding knowledge workers involved in creative and strategic thinking. By embracing flexibility and allowing individuals to tap into their natural sources of inspiration, businesses can unlock more significant innovation and employee satisfaction.

"Technology will offload us from these tasks and make us think and experience - what is really meant for us humans." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

The changing work landscape calls for reevaluating productivity measurements and the relationship between managers and employees. Saad encourages a shift towards more holistic approaches that consider individual strengths, preferences, and the diverse ways in which people thrive professionally. Remote work has gained momentum as a prime example of this shift, providing flexibility and empowering individuals to achieve their best work.

Saad's insights prompt us to reimagine the concept of work in the modern age, incorporating the advancements of robotics and AI to create a more fulfilling and productive environment for all.

How We'll Rely on Human Workers in the Future

As the workforce undergoes a profound transformation, Saad provided insights into the evolving role of humans in the future of work. In an era where machines handle objective and transactional tasks, humans are poised to shoulder subjective and relational components of work, thereby becoming supervisors, problem solvers, and anticipators.

Supervising robots will be a critical responsibility for humans, ensuring quality consistency and addressing issues that arise along the way. Additionally, human expertise will be invaluable in debugging and fixing robots, requiring a deep understanding of hardware and software aspects.

However, one of the areas where humans will continue to excel is anticipation. Humans can connect the dots, think critically, and plan strategically, making sense of complex factors such as economic trends, supply chain crises, and customer sentiments. This higher-level thinking and synthesizing will be crucial in industries where automation and AI cannot fully handle such complexities.

"So we need to think about the whole concept of work, and that includes measuring productivity and the whole relationship between managers and employees." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Saad emphasized the importance of cultivating skills that go beyond technical proficiency. System thinking, in particular, becomes increasingly valuable in a world where human-machine collaboration is the norm. Understanding how systems operate and their underlying principles enables individuals to navigate the larger picture and maintain control over the integration of technology into various aspects of work.

Moreover, Saad highlights the positive impact of automation and AI on job creation. He cites Amazon's example, where the use of robots in warehousing led to increased market share and economic power, ultimately creating more jobs. Organizations can expand their reach and generate employment opportunities by leveraging technology effectively.

He also envisions a future where humans play vital roles as supervisors, problem solvers, and strategic thinkers, complementing the capabilities of machines in the workforce. By embracing system thinking and combining technical expertise with higher-level cognitive skills, individuals can navigate the changing work landscape and contribute to its growth and success.

Assessing the Value of Founders in Early-Stage Companies

Investing in early-stage companies requires a unique approach, focusing on the product or innovation and the founders themselves. Saad shared his perspectives on evaluating the value of founders in this context.

As an investor, Saad emphasizes the importance of being a system thinker, considering multiple factors contributing to a startup's success. Unlike the stock market, where AI algorithms can rely on quantitative data, early-stage companies often lack revenue or historical financial metrics. To make informed assessments, investors must consider various aspects, including market trends, evolving technologies, team dynamics, execution plans, and business modeling.

Assessing a founder goes beyond a quick judgment. Saad believes that experience plays a crucial role in developing good judgment. Having been involved in academia, research, entrepreneurship, and working with numerous startups, he has acquired valuable insights and patterns of successful entrepreneurs. This experiential knowledge allows him to identify founders who align with those patterns and identify potential blind spots that require further due diligence.

"I think the best investors out there are system thinkers because really investment is one of the most complex jobs, and lots of people try to use AI to invest." - Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics

Investors must also anticipate future challenges and disruptions. Factors such as the emergence of new technologies or competition from established incumbents can significantly impact the success of an early-stage company. Considering the long-term investment horizon typically spans five to ten years, investors need to evaluate how a startup will evolve over time and navigate potential obstacles.

Ultimately, Saad highlighted the complexity and intricacy of assessing the value of founders in early-stage companies. While there is no definitive formula, a comprehensive evaluation encompassing market knowledge, technology understanding, team dynamics, and a track record of achievement can guide investors in making informed decisions.

Want to hear more from Fady Saad?

• Catch Fady in episodes 2 & 5 of Season 1 of The Lever with Drew Fortin
• Watch my full-length interview with Fady Saad, General Partner at Cybernetix Ventures and Co-Founder of MassRobotics, on YouTube
• Follow Fady Saad on LinkedIn