VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
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In business downtown robot-building company leaving las vegas for silicon valley By Joe Schoenmann staff writer In a move that some will see as a blow to the growing Las Vegas tech community, Romotive, a personal robotics company that quickly saw its fortunes rise after moving to the city in 2011, is leaving for the Bay Area. The company's CEO, Keller Rinaudo, sent an email to downtown's tech community, including VegasTechFund, which invested $500,000 in the company early on, announcing the company's departure. Neither Rinaudo nor a company spokeswoman responded to inquiries from VEGAS INC. Zach Ware, a VegasTechFund partner, said he was sad to see his friends leave town. At the same time, Ware said he didn't see the announcement as hurting the tech movement downtown that he and others are vigorously supporting. "I'm super energized about what's happening here," Ware said. "We understood (Rinaudo) making a decision he thought was important for his company." Ware said he understood how people might jump to conclusions and see the move as a negative for downtown. However, he said, "if you have the full perspective of what's happening in the tech community, you won't see it that way." Rinaudo wrote the reason behind the move, which will take place over the next three months, was the company's desire to be closer to the large pool of tech-savvy operators in the Silicon Valley. In his email, Rinaudo said the company's goal was to build the first affordable personal robot. "It's my responsibility to make sure that Romotive is located where we are most likely to achieve this vision," he wrote. He also said the company wanted to be close to "strategic partners and hiring brilliant senior talent that can take our robotics focus to the next level." Las Vegas' tech community is a baby relative to the decades-old Silicon Valley in the Bay Area. The California tech hub also is near a wealth of universities that pump out thousands of tech-ready graduates. By comparison, Nevada's four-year, public universities pale in both size and number of graduates. Rinaudo credited Las Vegas with providing fertile ground for the company, whose three founders moved here in 2011 with the idea of creating a small robot that can be operated by someone with a smartphone. By attaching a phone to "Romo," the company's robot, someone else halfway around the world can maneuver Romo with another smartphone or computer and see what Romo sees. "This was a difficult decision for us because Romotive wouldn't be the company we are without the constant support of Downtown Project, Tony (Hsieh, Zappos CEO and VegasTechFund partner), Fred (Mosler, also with Zappos and a VegasTechFund partner) and many others," Rinaudo wrote. VegasTechFund was founded after Zappos announced its move from Henderson to downtown Las Vegas in late 2010. Hsieh and others also created Downtown Project, which will invest $350 million downtown in education, small business, tech and other areas. The move has spurred growth and more interest in tech startup companies in the area. For more than a year, Romotive operated out of condos in the Ogden. Last March, when U.S. Sen. Harry Reid stopped by the Ogden to visit Hsieh at his condo, a Romotive employee showed Reid how the robot worked. Romotive now employs at least 20 people; a plant in China now manufactures the tiny robot. Rinaudo wrote that the company has signed its single largest order for 10,000 Romos. Despite his departure from Las Vegas, Rinaudo said he believed Hsieh "will succeed in building the downtown area into a bright tech ecosystem." Romotive's departure follows news in February when ecomom.com, one of the first startups VegasTechFund invested in, liquidated and went out of business. Ecomom CEO Jody Sherman took his own life in January. REINVENTING RADIO: AN EVENING WITH IRA GLASS A riveting look into This American Life, the public radio show that continues to push the boundaries of broadcast journalism. Series creator Ira Glass will recreate the sound of the show right in front of the audience by mixing live onstage stories with pre-taped quotes and music, while also featuring a 'best of' segment from the series' funniest moments. Saturday, April 27 at 7:30pm TICKETS STARTING AT $26 For tickets, please visit TheSmithCenter.com or call 702.749.2000 TTY: 800.326.6868 or dial 711 | For group inquiries call 702.749.2348 361 Symphony Park Avenue | Las Vegas, NV 89106 | 1 APRIL 2013 20130401_VI09_F.indd 9 | 9 3/28/13 2:54:21 PM