Funding to drone delivery firms rises as tech investment drops generally: report

Despite the general cooling of previously hot investor enthusiasm for tech – especially companies pursuing next-generation aviation aircraft and services – startups pursuing what now remain largely conceptual drone delivery operations continue attracting a remarkable flow of development capital according to recently published figures.

Although the number of firms actually transporting food and merchandise orders from businesses to consumers remains limited – in no small part due to regulatory restraints – venture capitalists continuing banking that even still grounded drone companies will eventually deliver on investment. That’s the conclusion of a recent analysis by the finance and funding data site CrunchBase, which says firms working to replace existing car, motorcycle, bike, and even sea ferry couriers took in nearly as much investment in the first half of this year as all of 2022.

Read: Flytrex reports enormous surge in 2022 drone delivery activity

The first semester 2023 total for companies focusing on or involved with drone delivery activities clocked in at around $1.5 billion, according to CrunchBase. That was nearly as high as the $1.6 billion figure cited for all last year. Given the deals signed and network developments in the sector over the past six months, it seems unlikely those funding inflows will considerably weaken any time soon. 

That decidedly enviable allure of drone delivery startups contrasts the increasing wariness for tech companies investors have developed over the past year, as even giants like Meta, Amazon, Microsoft, and Google owner Alphabet have slashed staffing awaiting a much feared (and thus far entirely imaginary) recession. Capital flows of $144 billion to sector firms dropped by 51% in the first half of 2023, according to CrunchBase, compared to the $293 billion received during the same period last year.

Read: Cash-pinched Lilium secures additional $192 million for eVTOL air taxi development [Update]

Even once irresistible advanced air mobility activity has experienced a dramatic tightening of investor purse strings, despite its leaders continuing their progress toward certification, production, and 2025 launch goals. Several, including German firm Lilium, have made considerable effort to raise additional funding needed to meet those objectives, amid money-reducing observer concerns the over-crowded market is heading toward serious consolidation.

Not surprisingly – given the recent deals and network developments it has announced – Zipline topped the CrunchBase first half investment ranking of “drone and drone delivery related companies” with a total if $813 million. That represents around one-fifth of its total estimated valuation of $4.2 billion, placing it behind global giant DJI’s calculated $15 million.

Also included in the top 11 firms listed are Wingcopter’s $66.2 million, Skyports with $32 million, Ireland’s Manna Drone Delivery’s $30 million, Drone Delivery Canada’s $13.6 million, and MightFly with $5.1 million. 

Read: Manna drone delivery CEO Bobby Healy discusses EU, US expansion

The ranking also cited a few startups not considered involved with drone deliveries, but which do produce vehicle and systems used in the activity, like Skydio’s number two $570 million in first half fund raising, Altitude Angel’s $10.8 million, and smart mailbox company Arrive’s $6.3 million.