Bear Robotics, the U.S. robotics subsidiary majority-owned by LG Electronics, is seeking up to 400 billion won (approximately $300 million) in pre-IPO funding as it prepares for a potential Nasdaq listing, according to people familiar with the matter1,2. BofA has been selected as lead underwriter for the round.
The target valuation is around 2 trillion won (approximately $1.5 billion), more than double the 700 billion won (approximately $523.5 million) at which the company was valued during its Series C round in 2024. LG Electronics holds a 56.9% majority stake in Bear Robotics.
Bear Robotics, which built its name on the restaurant-serving robot Servi, is expanding into industrial autonomous mobile robots and physical AI. In June, the company acquired UK-based Kinsi Robotics to internalize robotic arm technology for logistics and manufacturing applications. Proceeds from the pre-IPO round are intended for R&D and business expansion.
The fundraise comes as the company continues to post losses. From May 7 through the end of last year, Bear Robotics recorded revenue of 17 billion won and a net loss of 42.2 billion won.
ANALYSIS The more-than-double valuation jump from the 2024 Series C to the current pre-IPO target reflects the company's bet that its pivot from hospitality robots into industrial autonomy and physical AI can command a premium from late-stage investors, despite persistent operating losses.
A potential complication sits on the regulatory side. South Korea's government is revising dual-listing regulations to cover overseas subsidiary listings, which would impose shareholder impact assessments and shareholder protection obligations on parent company boards. Because LG Electronics is publicly traded in Seoul and holds a controlling stake in Bear Robotics, a Nasdaq listing could trigger these requirements.
ANALYSIS The dual-listing regulatory revision adds a layer of uncertainty to the Nasdaq timeline: even if the pre-IPO round closes successfully, the path from capital raise to public listing runs through evolving Korean governance rules that did not apply when the subsidiary was first established.
The broader South Korean robotics sector is drawing fresh government support. Seoul's record 2027 budget proposal sharply boosts robotics spending and expands support beyond R&D into purchases and mass production. Meanwhile, South Korea's main board IPOs are heading toward a four-year low amid stricter corporate governance rules and heightened market volatility, with major unicorn startups eyeing 2027 listings instead.
ANALYSIS Bear Robotics' choice of Nasdaq over a Korean exchange sidesteps the domestic IPO drought but does not fully escape Korean regulatory reach, given LG Electronics' majority ownership and the pending dual-listing rule changes.