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The Mistake That Cost a Founder $1.7B
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The Mistake That Cost a Founder $1.7B

The man who put a robot in every home shares the "cautionary tale" of the Amazon acquisition, the "trophy wall" of the FTC, and why he’s starting over.

iRobot was the miracle that almost wasn’t. For 33 years, Colin Angle steered the company from a living room startup at MIT to a global household name. But in early 2024, the story took a dark turn: a $1.7 billion acquisition by Amazon was blocked by regulators, leading to bankruptcy filings and Colin’s departure.

This week, we sit down with the legendary co-founder to unpack one of the most controversial moments in recent tech history. This isn’t just a post-mortem on a deal — it’s a masterclass in resilience, the “behavior control” philosophy of robotics, and a warning shot to the American innovation economy.

In this episode, we explore:

  • The Amazon Blockade — Why Colin calls the FTC’s decision a “miscarriage of justice” and how a year-and-a-half in regulatory limbo effectively froze iRobot’s ability to compete.

  • Artificial Insects (AI) — The MIT origins of iRobot where “AI” stood for artificial insects, not intelligence, and how cockroach-inspired robots led to the Mars Rover.

  • The 12-Year “Overnight” Success — How the Roomba was actually a “mishmash” of a mine-hunting algorithm, a Hasbro toy manufacturing process, and an industrial supermarket cleaner.

  • The “Pepsi” Turning Point — The bizarre story of how a Dave Chappelle commercial saved the company from a warehouse full of unsold robots.

  • 17 Years of Moats — Why it took nearly two decades for competitors to catch up, and the moment the “robot ecosystem” finally commoditized the industry.

  • Familiar Machines and Magic — A first look at Colin’s new venture and why he believes the “dark ages” of robotics are over, thanks to generative AI.

  • The Founder’s Resiliency — Colin’s advice for the next generation: why naivety is a superpower and how to get back up when the world — and the government — disagrees with you.

Chapters

(0:00): iRobot Going Bankrupt
(6:20) The Aha Moment
(13:20) 12 Years Getting Roomba Launched
(17:58) Growth Going Bananas
(24:22) The Mighty Cage Fight With Copycats
(29:46) Amazon Comes Knocking With $1.7B
(50:38) Lessons Going Through Potential Acquisitions
(56:26) Colin's New Company

Thanks for listening and see you in the next episode 👋

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