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In 2016, Kensington Capital Partners welcomed Clearpath Robotics into our portfolio, a global leader in autonomous technology for industry. We first met Clearpath and Matt Rendall through our partnership with iNovia, who had invested in the company. Initially, we were impressed with the company’s technology and prospects, and decided to complete a modest investment from our venture fund to engage with the team and monitor their progress. As passive investors, we closely followed the company’s growth and development, when Clearpath initiated its series C financing round in 2020, we stepped forward as lead investors, making a substantial commitment from our Private Equity Fund, shifting into an active investor role with Kensington Senior Managing Director Rick Nathan joining the Board.
As the journey unfolded, culminating in the recent acquisition by Rockwell Automation, we had the privilege of conversing with Matt Rendall, the CEO and Co-founder of Clearpath Robotics. Our discussion delved into the company’s origins, the challenges faced along the way, and the remarkable trajectory it carved in the industrial automation sector.
Q: Matt, can you share why you started Clearpath Robotics and your initial vision?
A: Absolutely. We were incredibly passionate about robotics, particularly autonomous mobile robots, which, at the time, were mostly confined to university labs. Wanting to pursue careers in this niche field of technology led to a kind of “forced entrepreneurship.” We aimed to make a living doing what we loved amidst a challenging job market in 2008 and 2009.
Q: With no previous job experience outside of Clearpath, how did you manage the transition leading you to a major company like Rockwell?
A: Having spent 15 years as the underdogs and now achieving success is a humbling experience. We went from being passionate about an obscure technology to being deeply involved in the industry. Joining Rockwell gives me the chance to work alongside people who share our vision and values. Although the adjustment to having a boss is new, there’s a strong cultural alignment that makes the transition smoother.
Q: What were some inflection points for Clearpath, and how much did the product vs. market readiness contribute to your success?
A: One major point was pivoting into autonomous material handling — which involves applying technology similar to what’s used in self-driving cars in industrial factories for inventory management. After rigorously fine-tuning our products to achieve industrial reliability, we reached a point where the market demand for our technology reached a critical peak. Our customers needed solutions for logistical challenges within their plants, and when our tech was ready to meet these requirements, the market was also at a breaking point where they couldn’t wait any longer.
Q: How did you navigate the massive growth and challenges brought by the COVID-19 pandemic?
A: It was indeed a challenging time as supply chains were disrupted, and we were experiencing a significant inflection point. We had to adapt rapidly, grow our executive team remotely, and restructure our organization. Support from Kensington’s talent network was invaluable. We brought in leaders from another former Kensington portfolio company, Prodomax, who dramatically helped us manage our growth. In the first year with their assistance, we tripled our sales and shipments.
Q: What is your view on the fear of technological unemployment with the rise of automation?
A: That’s a common concern, but historically, technology disruption has resulted in net job growth, not job loss. With Clearpath’s automation solutions, we’re not replacing jobs, but rather facilitating the transfer of labour to more critical roles. Most manufacturers today struggle not from an oversupply of labour but from a shortage, and automation helps to keep operations domestic and efficient.
Q: Do you believe that automation and your company’s recent exit signal the end of a wave, or are we beginning a new chapter in industrial automation?
A: We’re just at the dawn of the golden age of industrial automation. The demand is high, and the space for innovative solutions is far from saturated. With the significant challenges facing the industry in terms of labour shortages and manufacturing demands, this sector presents tremendous opportunities for growth and investment over the next decade.
Q: What impact does automation have on manufacturing jobs and offshoring trends?
A: Automation has the power to bring many manufacturing jobs back to North America by making domestic production more cost-effective and efficient. As the founder of Prodomax highlighted, automation has historically not reduced job numbers — it’s the offshoring and outsourcing that did. Automation positions us to strengthen local economies by revitalizing a robust manufacturing sector right here in North America.
We want to thank Matt Rendall for his time and for providing insight into his journey!
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