Sankaet Pathak is back. This time he’s building a robot. Just a few months after the fintech company Synapse collapsed under his leadership, Pathak is now behind a new startup called Foundation Robotics Labs.
According to an exclusive report from the information, the company is reportedly trying to raise $100 million at a $1 billion valuation. That’s a bold question, especially for a company that was founded last year and still operates stealth. But this is Silicon Valley and big bets are nothing new.
Foundation Robotics aims to value $1 billion
“The humanoid robot startup, founded by the former CEO of bankruptcy Fintech Synapse, is in discussions to raise funds at a $1 billion valuation,” the information reported.
New bets on automation
Founded in April 2024, Foundation Robotics Labs was launched by Pathak alongside Tribe Capital’s Arjun Sethi and former Cobalt Robotics executive Mike Leblanc. the goal? Build humanoid robots that can handle complex tasks in real-world settings. Pathak told TechCrunch the mission is to address labor shortages with robots that can actually get the job done.
The technology they advertise is beyond what is used in self-driving cars, claiming breakthroughs in object detection, depth perception, and unfamiliar object estimates. If true, this would be the foundations in a busy automation race.
So far, the company reportedly raised $11 million in pre-seed capital, backed by the tribal capital and other early investors. Now it aims for a much bigger round, with interest reportedly from funds affiliated with Saudi royal families.
But wait – that name sounds familiar
Pathak’s name is still fresh in the Fintech circle and doesn’t mean it in a good way. He was the founder and CEO of Synapse, a banking startup that collapsed in 2024, and at its peak, Synapse helped to provide banking services by sitting between other Fintech companies and partner banks such as Evolve Bank & Trust. Despite raising more than $50 million from investors, including Andreessen Horowitz, Synapse filed for bankruptcy in April, leaving around $85 million in customer capital unconfirmed.
A court filing revealed that Synapse’s clients and partners were all mixed in funds, which is why they tracked and retrieved the money in a nightmare. Pathak confirmed in court that Synapse has merged operational funds with client funds. Recovery efforts are underway, but many customers remain locked out of their accounts.
The repulsion is intense. Critics are bewildered that Patak could raise funds for a new venture while Synapse’s previous clients and creditors are still in scope. “It’s really incredible that VCS is willing to fund anyone just leaving the bomb crater he created,” said industry veteran Todd H. Baker. Michele Alt, a partner at Klaros Group, noted that US bankruptcy law shields its founders from personal liability unless fraud is proven.
Pathak, on his part, blames Evolve Bank & Trust for financial shortages. But evolution denies responsibility. The criticism game continues.
GM trading? There is not at all.
The foundation’s fundraising efforts have caused several conflicts. In June 2024, CNBC revealed that the startup had distributed a pitch deck claiming that General Motors was investing in, investing $300 million orders and trying to provide basic access to the factory. GM Flatout denied that. “GM has never invested in Foundation Robotics and has no plans to do so,” the company said. “All the opposite claims are manufactured.”
“GM has never invested in Foundation Robotics and has no plans to do so,” spokesman Darryll Harrison said in an email. “In fact, GM had no agreement of any kind with the company. All opposing claims are manufactured.”
Co-founder Mike LeBlanc admitted that the slide deck was misleading, and he said he was “embarrassing” with the confusion. He added that the foundation’s value lies in the engineering team, not the interest of manufactured investors. However, damage to the company’s reliability has been done.
Can the foundation catch up?
The foundation is about to break into a space already bustling with investors’ cash. Agility Robotics raised $400 million at a $1.75 billion valuation earlier this year. Another player in the space, Figure AI, has reached a valuation of $39.5 billion after raising $1.5 billion with support from Openai, Nvidia, Microsoft and others.
Big Tech is currently an all-in robotics. Companies such as Tesla, Meta and Nvidia are betting that humanoid robots will fill the crucial labor gap, especially in manufacturing and logistics. However, building a robot that can do what is actually useful in a messy, real-world environment is not easy. As Brian Heater of TechCrunch pointed out, most companies in this space are far from deploying robots on scale.
The Foundation claims it has technology that surpasses autonomous vehicle recognition systems. If it is being scrutinized, they can have something special. However, given the recent history of GM Blunder and Pathak, skepticism is high.
Investors are still interested
Despite the red flag, investors have not left. The tribal capital remains involved. The Saudi-related family office is said to lead the $100 million round. The pitch is clear: automation is booming and the foundation can become a major player.
Consulting firm McKinsey predicts that a quarter of all industrial capital expenditures will be automated over the next few years. If Foundation can provide flexible and efficient humanoid robots, it will benefit from that shift.
But there is high expectations for a big promise, and there is a short leash.
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