Vantora, formerly UP.Labs, raises $100 million to build "physical AI" startups

A startup with an unusual business model has just entered a new stage of development. UP.Labs, the company that builds startups on behalf of industrial corporations, has announced $100 million in funding along with a complete rebrand under the name Vantora, according to TechCrunch.

A business model built on "manufacturing" startups

Unlike traditional investment funds, which only finance companies that already exist, Vantora operates as a startup-building studio. In practice, the company identifies specific needs of large industrial corporations and builds businesses from scratch designed to solve those problems. It's a hybrid model, sitting somewhere between a venture capital fund, an incubator, and a strategic consulting firm.

This approach allows traditional corporations, often slow-moving when it comes to internal innovation, to benefit from the agility of a startup without taking on the risks and costs of developing such projects in-house.

Betting on "physical AI"

The new $100 million in funding comes with a clear strategic direction: Vantora is now focusing almost exclusively on what the industry calls "physical AI" — artificial intelligence applied directly to physical industrial processes such as robotics, factory automation, logistics, and manufacturing operations.

This trend reflects a broader shift in the technology market. While investor attention in recent years has centered on generative AI and software applications, more and more companies are now betting on integrating artificial intelligence into real-world equipment and physical processes, where the economic impact can be immediate and measurable.