A Closer Look at Drone Company Funding Patterns

As the infographic above shows, drone companies received $1.7 billion in 2023, which is half of the total amount they received in 2022 ($3.3 billion). After more than doubling between 2020 and 2021, funding for drone companies declined in 2022 and was cut in half in 2023 (-49%). Is this an anomaly or a trend? Was there a bubble that has now burst? Let's take a closer look at the new patterns in drone company funding, and why it may not be all bad news for the industry.

Perhaps the biggest factor in the decline of drone company funding boils down to a common problem: growing beyond the startup stage. The value of later-stage venture capital investments has declined significantly, and this has not just happened in the drone industry. So at this stage, even if a drone company has developed its product, proven that there is a market opportunity, and has significant revenues, recent global financial trends show that there is now a lower chance of receiving further [substantial] investment. And what about the companies that make it past this stage?

The value of IPO and post-IPO deals more than doubled, which was certainly a strong sign for companies entering financial markets around the world. However, the number of IPO/post-IPO deals was down from last year. So, on the one hand, fewer companies benefited from these deals, but on the other hand, the companies that did benefit did so in a big way. So it is hard to call this a positive or negative development, and it just remains an observation to be considered.

Find more data about the drone market and download the free infographic in our blog post about the database below:

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