Sankaet Pathak, the controversial founder behind the collapsed fintech Synapse, is back in the startup spotlight. This time, he’s pivoting to humanoid robotics with a new venture, Foundation Robotics Labs, which is already stirring debate in Silicon Valley. Just a year after Synapse filed for bankruptcy, Pathak’s new company is reportedly seeking to raise $100 million at a $1 billion valuation, a bold move for a stealth-stage startup still building its credibility.
Founded in April 2024, Foundation Robotics is co-led by Pathak, Tribe Capital’s Arjun Sethi, and Mike LeBlanc, formerly of Cobalt Robotics. The company’s mission is ambitious: to develop humanoid robots capable of performing real-world tasks in factories, warehouses, and potentially homes. These robots, according to Pathak, are designed to address labor shortages with advanced AI-powered perception systems that can detect objects, assess depth, and recognize unfamiliar poses.
The startup has already secured $11 million in pre-seed funding, with early support from Tribe Capital and other undisclosed backers. Now it’s aiming for a larger $100 million raise. Reportedly, interest is coming from a Saudi royal family-affiliated fund—further evidence that the robotics space, especially humanoid robotics, continues to attract deep-pocketed investors.
However, Foundation Robotics’ $1B valuation push hasn’t come without friction.
A New Venture Haunted by the Past
Pathak’s name still echoes in the fintech world—for all the wrong reasons. His previous company, Synapse, was once a darling of the banking-as-a-service sector, helping fintechs offer banking solutions through partnerships with regulated banks like Evolve Bank & Trust. Synapse raised over $50 million from high-profile investors like Andreessen Horowitz. But by April 2024, it had filed for bankruptcy, leaving $85 million in customer funds in limbo.
In bankruptcy court, it emerged that Synapse had comingled customer and operational funds, creating a financial black hole that auditors are still trying to untangle. Pathak admitted the practice under oath. While U.S. bankruptcy law shields founders from personal liability absent proven fraud, the reputational damage has been severe.
Critics are now raising eyebrows at the fact that Pathak is once again fundraising, despite unresolved issues with Synapse creditors and customers. Industry expert Todd H. Baker said it’s shocking to see VCs still backing someone with such a recent and high-profile failure. Yet, under current law, Pathak is free to start again.
The GM Slide Deck Fiasco
Foundation Robotics’ credibility also took a hit last summer when it circulated a pitch deck that falsely claimed General Motors had invested, placed a $300 million order, and offered factory access. GM publicly refuted every part of the claim, saying no deal had ever existed.
Co-founder Mike LeBlanc later admitted the GM slide was misleading and expressed regret, but the episode raised questions about how the company represents itself to investors. For a startup seeking $100 million in new capital, misrepresentations—even accidental ones—can be costly.
Competing in a Crowded Market
Despite the turbulence, Foundation Robotics $1B valuation pitch isn’t entirely outlandish—at least by Silicon Valley standards. The humanoid robotics space is heating up. Figure AI recently landed a $1.5 billion round at a jaw-dropping $39.5 billion valuation, backed by giants like OpenAI, Microsoft, and Nvidia. Agility Robotics also raised $400 million at a $1.75 billion valuation.
Tech titans such as Tesla and Meta are pouring resources into robotics, betting that humanoid bots will fill labor shortages in manufacturing, logistics, and beyond. But the gap between flashy demos and real-world deployment remains wide. As analysts like Brian Heater have pointed out, many robotics startups still struggle with reliability and scalability.
Foundation claims its tech surpasses even self-driving car systems in perception and adaptability. If these claims prove accurate, the company could carve out a meaningful niche. But with its founders under scrutiny and recent blunders still fresh, Foundation will need more than bold talk—it’ll need proof.
Investors Still Betting on Automation
Despite the baggage, investors haven’t turned away. Tribe Capital remains on board, and reports suggest a Saudi-linked fund is leading the upcoming $100 million round. It’s a clear signal that automation remains one of the most investable sectors of the decade.
Consulting firm McKinsey estimates that over 25% of future industrial capital spending will flow into automation. For Foundation Robotics, delivering humanoid robots that are flexible, cost-effective, and capable of navigating complex environments could be a golden ticket. But its window to impress investors is narrowing fast.
In a market brimming with breakthroughs and backed by Big Tech, Foundation is fighting for relevance—and redemption.
