Takeaways from #XPONENTIAL24, as this was actually one of the most insightful conferences I’ve attended in my career.
There wasn’t as much “game-changing technology” introduced as last year, yet it also highlighted/clarified where the industry is going in the short and medium term:
#insights:
- Much bigger show than anticipated.
This was one hell of a show (I was clearly very wrong about dwindling numbers despite the increase in attendees) that is getting close to pre-pandemic levels in terms of scale and size.
Love the momentum, shows growing interest in the technology.
- *Most* UAS companies still have difficulty productizing their technology.
Many of you (objectively) need the help UAS Nexus offers ??.
- #innovation is slowing but maturing, and that’s better.
Listen, we can’t expect to get radically new products every year - there are a handful of supremely #disruptive products that were launched or teased at the show.
Untethered will be releaseing videos and interviews about the best new #technology from the show, stay tuned.
- greater need than ever to build an industrial base for #drones in the #West.
And it will be the #component #oems who get us there.
- The majority of the revenue in this industry comes from defense, which is shifting product #strategy for many firms.
Make your bets wisely, drone companies… be sure to build it for the customer of tomorrow, not just today.
BIGGEST TAKEAWAY:
Most of you are not making money.
The drone industry really is in a #consolidation phase, not a #growth phase - the firms that are profitable are being acquired by much larger organizations.
This ‘Darwinism’ is partly explains the aforementioned ‘innovation curve’ dipping - some companies have found their niche and have organized their R&D budgets appropriately, while others continue to set cash on fire.
This is prompted myself and few other industry leaders to organize a private, invite-only, conference this Summer for drone companies looking to be acquired or IPO.
Think of it as a drone #mergers and #acquisitions conference - we we are bringing together some of the best companies in the industry, along with some of the best funding teams and industry leaders with prior successful exits to help steward this.
Reality is that some of your companies think you are worth much more than you really are, but the inverse is also true.
The industry needs more wins/buyouts (like the recent Robinson Helicopter Company acquisition of Ascent AeroSystems) in order to scale and flourish.
I ended up having an #epiphany or two about this industry, which I will share in later posts.
