Using Funds to Expand Worldwide
Skydio, the drone-making startup, said it will use the substantial proceeds to invest in global expansion and boost product development. The drone startup raised $100 million in the previous round in July 2020 and launched its first dedicated enterprise drone — “X2.” The startup has also rolled out a set of software for commercial and business clients, its first product outside the consumer drone market.
“It turns out that developing all the software and hardware to do that has set them up to be best in class at competing in the enterprise markets,” said David Ulevitch, general partner at Andreessen Horowitz.
The company’s first-ever drone, “R1,” won the accolades and hearts of many users thanks to its original capabilities. In contrast to its rivals at the time, R1 was able to track a target and record them while avoiding obstacles all on its own.
After that, the drone business rolled out its second drone, “Skydio 2,” in 2019 and priced it twice as low while upgrading its tracking and recording capabilities.
“The potential for drones has really caught people’s imaginations in the consumer world, capturing amazing video — and in the industrial world for inspection, mapping, and monitoring,” said Adam Bry, CEO of the company.
In late 2020, the startup hired an additional senior official to improve the service to business and government clients, as well as a senior software developer who previously worked at Tesla and Carbon. The company also brought on two Samsara officials to handle product and engineering.
One of Skydio’s biggest business strengths is its diverse client base. The company already has a number of deals with fire departments, public utility companies, construction businesses, and so on. The drone business provides various services to those companies, including remote inspection, emergency response, urban planning, and more.
Since it is a US-based company, Skydio is very well-positioned to take advantage of the rising interest in applications from the defense sector.
The drone startup Skydio has raised $170 million in the latest Series D round led by Andreessen Horowitz’s Growth Fund. The startup has now raised a total of $340 million in funding and reached a post-money valuation of more than $1 billion.
About the Author
Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.