Embedd, a London-based startup building infrastructure for physical AI, has raised €2.3 million ($2.7 million) in pre-Seed funding to continue developing its platform and expand its work with semiconductor companies.
The round was led by Seedcamp, with participation from Cocoa, Connect Ventures, 2100 Ventures, Vesna Capital, U.ventures, Underline Ventures, Common Magic and Roosh Ventures.
Michael Lazarenko, co-founder and CEO of Embedd, said, “The next wave of AI will power factories, vehicles, robots and critical infrastructure, but today, every change in hardware creates huge complexity for software teams and that friction is already massively slowing innovation. We built Embedd to address exactly that, and we’re thrilled to have the backing of Seedcamp as we scale.”
Embedd was founded by Ukrainian tech entrepreneurs Michael Lazarenko, Maxim Gorinov and Valentin Gololobov after their previous hardware company was hit by chip shortages during COVID and later disrupted by Russia’s invasion of Ukraine.
The company states that it uses digital twins and AI agents to automate the integration of chips into software ecosystems, helping semiconductor companies make their hardware easier and faster for developers to build on.
The founders repeatedly had to rewrite software for newly sourced components, and they recognised a bottleneck they believed would only worsen as AI moved into the physical world.
The startup highlighted the fact that every intelligent machine encounters the same bottleneck before it can operate. The software running underneath it must communicate reliably with dozens of different chips, none of which share a common language.
Embedd claims to automate that layer. Instead of engineers reading thousands of pages of documentation and hand-writing the code, the company creates a digital twin of the hardware, giving its AI agents the context to run the integration, and generates the code that makes each chip usable by the software above it.
It reported that it has enabled customers to deliver production-ready software for chips up to six times faster. Since its commercial launch in April 2026, Embedd has also reported signing contracts with multiple semiconductor companies. Among them is Microchip Technology, where Embedd is enabling Zephyr support.
Lazarenko added, “The promise of physical AI is enormous, but today’s hardware fragmentation is slowing innovation. This funding enables us to expand our platform and help more semiconductor companies bring their devices into emerging software ecosystems”
Source: EU-Startups
