PrecisionHawk Raises $32 Million to Advance Next Phase of Growth in Commercial Drones
BY Isabella Lee12 December 2019
PrecisionHawk, Inc., a leading provider of drone technology for the enterprise, has announced a $32 million investment from venture investors including Millennium Technology Value Partners, Third Point Ventures, Eastward Capital Partners, and others.
This is an exciting time at PrecisionHawk and the commercial drone industry overall as adoption of drones continues to grow at exceptional rates…We are pleased with this latest round of funding which will help us better address this surging demand…
— Michael Chasen, CEO of PrecisionHawk
The financing will fuel continued innovation in PrecisionHawk’s software tool, PrecisionAnalytics that uses artificial intelligence/machine learning, to help enterprises better utilize data collected by drones to solve business challenges. The financing will also accelerate sales initiatives and further market expansion.
Who is Using PrecisionHawk’s Software and Drone Tools?
Some of the world’s largest organizations, including five of the top 10 utility companies, the largest provider of communications infrastructure in the United States and the “Big Six” providers of seed and agricultural chemicals, rely on PrecisionHawk to help them apply innovative drone hardware, software and services to address critical business challenges.
From managing asset inventory to measuring the health of telecommunications towers, electricity distribution lines or even crops, PrecisionHawk’s drone-based solution delivers a flexible and cost-effective path to inspect and manage valuable assets.
The demand for UAS technology is remarkable and demonstrates the great confidence investors have in a solid and growing market for years to come.
— Brian Wynne, President and CEO of the Association for Unmanned Vehicle Systems International (AUVSI)
PrecisionAnalytics, launched by PrecisionHawk in May 2019, provides enterprise markets with a more efficient way to inspect their assets and analyze data in large quantities—whether inspecting thousands of oil well pads or hundreds of thousands of utility towers. The platform has tremendous value in the energy, utility, renewables, and oil and gas markets. PrecisionHawk says customers can expect cost reductions up to 80% and dramatic improvements in safety in the field when they use the platform.
Which Drone Companies Rose to the Top and Which Fell in 2019?
The commercial drone industry has grown faster than anticipated and the FAA forecasts that it could triple between now and 2023, with an estimated 823,000 drones flying by that time. With this new funding, PrecisionHawk is well positioned to support the next phase of unmanned aerial vehicle (UAV) deployments.
Not all drone technology companies can say the same. Many have fallen victim to what Bloomberg describes as the “drone bubble burst.” The changing drone landscape has caused the “drone bubble” to burst and forced dozens of startups to shut down or consolidate over the past few years. Like AirWare for example, a developer of software analytics tools for drone-based data, which was acquired by Delair in November 2018. Then there was Parrot, a French drone manufacturer, that had to halt the manufacturing of most of its toy drone models in 2019 to focus on more profitable areas of business.
However, PrecisionHawk was able to rise above the tumultuous period by modifying their business model and prioritizing drone services over products. PrecisionHawk made five acquisitions of its own in 2018 and reported 300% growth in 2019 during CEO Michael Chasen’s Keynote at InterDrone.
[We] believe PrecisionHawk is well positioned to capitalize on the huge market opportunity ahead of it.
—Sam Schwerin, co-founder and Managing Partner of Millennium Technology Value Partners
Since its founding in 2010, PrecisionHawk has led policy and technology development efforts to foster global adoption of commercial drone technology. Michael Chasen was recently appointed by U.S. Secretary of Transportation Elaine Chao to serve as the Chairman for the Drone Advisory Committee (DAC), a group established by the FAA to advise on key challenges and opportunities for drones in United States airspace.
We imagine that PrecisionHawk will continue to lead the way, assisting regulators and encouraging industry participants to adopt innovative policies and technologies that can support not only today’s drone use cases, but those of tomorrow. Share your thoughts on PrecisionHawk’s most recent funding round in this thread on our community forum.