Just months after the collapse of Synapse, a fintech startup mired in scandal and bankruptcy, its founder Sankaet Pathak has resurfaced with a bold new venture: Foundation Robotics Labs. The stealth-mode robotics startup is reportedly seeking to raise $100 million at a $1 billion valuation, according to The Information. That’s an ambitious ask for a company barely a year old, still unproven, and led by a founder whose last company left a trail of unresolved financial chaos.
Building Robots to Solve Real-World Labor Gaps
Founded in April 2024, Foundation Robotics Labs is developing humanoid robots designed for real-world applications—think factories, warehouses, and possibly even homes. Pathak launched the startup alongside Arjun Sethi of Tribe Capital and Mike LeBlanc, a former executive at Cobalt Robotics.
According to Pathak, Foundation’s goal is to close growing labor gaps using robots that can actually get work done—not just demo well. The company claims to be working on advanced perception systems that exceed the capabilities of today’s self-driving cars, with innovations in object detection, depth perception, and pose estimation.
Backed by $11 million in pre-seed funding from Tribe Capital and others, the team is now aiming to raise a far larger round, reportedly attracting interest from a Saudi royal family-affiliated fund.
But Pathak’s sudden return is raising eyebrows. In early 2024, Synapse, his previous startup, collapsed into bankruptcy. The company had offered a banking-as-a-service layer for fintechs, serving as a middleman between platforms and partner banks like Evolve Bank & Trust.
Despite raising over $50 million, Synapse failed catastrophically, leaving $85 million in customer funds unaccounted for. Court filings revealed that Synapse commingled operational and customer funds—an error Pathak admitted under oath. The bankruptcy left thousands of users without access to their accounts and sparked multiple lawsuits from regulators and creditors.
That backdrop makes Pathak’s new fundraising push all the more controversial. “It really is incredible that VCs are willing to fund someone who just walked away from the bomb crater he created,” said longtime industry analyst Todd H. Baker. Bankruptcy laws shield founders from liability unless fraud is proven—something that continues to frustrate former Synapse customers.
GM Investment Claims Spark Credibility Concerns
Adding to the scrutiny, Foundation Robotics Labs was recently caught making false claims in a pitch deck. The company allegedly stated that General Motors (GM) was planning to invest, place a $300 million order, and provide access to its factories. GM denied any involvement.
“GM has never invested in Foundation Robotics and has no plans to do so,” a GM spokesperson told media outlets. “Any claims to the contrary are fabricated.”
Co-founder Mike LeBlanc acknowledged the error, calling the inclusion of GM “a mistake” and expressing embarrassment over the incident. Still, the damage to Foundation’s credibility has already raised concerns among observers.
Competing in a Crowded Robotics Race
Foundation enters an increasingly competitive field. Agility Robotics raised $400 million this year, while Figure AI secured a $1.5 billion mega-round, pushing its valuation to nearly $40 billion. These companies are backed by industry giants like OpenAI, Microsoft, and Nvidia, all betting that humanoid robots will become core to solving labor shortages in manufacturing, logistics, and even consumer services.
While most robots in this category are still far from real-world deployment, the sector is heating up fast. According to McKinsey, nearly 25% of all industrial capital spending in the next few years will go toward automation technologies.
If Foundation Robotics Labs can deliver on its technical claims—especially around perception and adaptability—it could find itself in a valuable position. But skepticism remains high due to past missteps and recent controversies.
Despite the red flags, investor appetite hasn’t cooled. Tribe Capital remains involved, and reports suggest that a Saudi family office is leading the current $100 million funding round. The allure? A massive market shift toward automation—and the belief that humanoid robots could be the next frontier
But high expectations come with a short leash. For Foundation Robotics Labs, the road ahead requires not only delivering on its ambitious tech promises, but also rebuilding trust in its leadership team and proving it can scale without repeating the mistakes of the past.
