PrecisionHawk, which at one level was one of many largest drone business giants is not any extra. The corporate, identified for utilizing drones to seize agricultural knowledge, filed for Chapter 7 chapter in mid-December 2023. Versus a Chapter 11 chapter, Chapter 7 chapter means PrecisionHawk will stop operations. The corporate may even shut down its headquarters in downtown Raleigh, North Carolina.
“The corporate didn’t have enough capital to take care of operations,” Jason Hendren advised the Information & Observer, a newspaper serving the Raleigh, North Carolina space. Hendren is a chapter legal professional in Raleigh who’s representing PrecisionHawk
In accordance with its chapter filings, the corporate owes $242,667 in unpaid hire on its headquarters. That debt is simply a tiny fraction of the $17.5 million price of debt it holds, in keeping with its chapter submitting. The corporate has simply round $3.8 million in belongings, which a court-appointed trustee might be accountable for utilizing to pay collectors. Although, unsecured collectors ought to anticipate to get nothing out of the submitting,
A lot of the firm’s staff have posted “Open to Work” badges on their LinkedIn profiles.
A historical past of PrecisionHawk
It’s been a tumultuous yr for the corporate, which at one level was among the many darlings of the drone business. Based in 2010, it touted purchasers together with 5 of the highest 10 utility firms, the most important supplier of communications infrastructure in america, and the “Massive Six” suppliers of seed and agricultural chemical compounds.
Via its historical past. PrecisionHawk made some pivots to its enterprise mannequin. It initially leaned into being a drone producer, earlier than later specializing in drones for distant sensing functions and knowledge processing. It centered on enterprise use instances similar to agriculture, power, photo voltaic, oil & gasoline, and telecom.
And it had scored some robust wins, notably when DJI introduced it might drop PrecisionHawk-competitor AirMap and substitute it with PrecisionHawk as its new supplier of airspace knowledge in North America. With that 2018 change, PrecisionHawk grew to become the geofencing expertise supplier behind DJI’s drones. Drone geofencing is a expertise pioneered by DJI that creates a digital “fence” round areas the place it doesn’t need its drones flying, similar to close to airports.
It additionally had important authorities affect. For instance, then-CEO Michael Chasen served because the Chairman for the FAA’s Drone Advisory Committee (DAC).
Throughout its Collection A by means of E funding rounds, PrecisionHawk raised greater than $136 million. That included $10 million from Intel Capital in it collection B, and a hefty $32 million collection E in 2019. The yr prior, it raised a fair greater $75 million.
However particularly previously yr, it’s change into clear that PrecisionHawk was having bother. Most of that new got here to mild shortly after Norway-based UAV inspection and mapping firm Discipline acquired PrecisionHawk in March 2023.
On the time, Discipline noticed the PrecisionHawk acquisition as a possibility to develop to the U.S. market. Discipline acknowledged that it might use PrecisionHawk’s synthetic intelligence and drone expertise firm for infrastructure administration with its purchasers, which included a number of Fortune 500 firms. In a March 2023 press launch sharing information of the acquisition, the corporate acknowledged that PrecisionHawk would hold its Raleigh headquarters and function below the Discipline model by the tip of the yr.
As a substitute, Discipline introduced in October 2023 that it might shut the PrecisionHawk workplace in Raleigh, North Carolina.
“We knew it might be a problem to make PrecisionHawk worthwhile within the quick time period,” stated Krister A. Pedersen, who stepped in as interim CEO of Discipline in September 2023 after former CEO Cato Vevatne stepped down. “Regardless of our greatest efforts, we couldn’t flip it round in time, and we’ve needed to shut the workplace.”
What’s subsequent for PrecisionHawk and what’s going to fill its void?
As for what’s subsequent for PrecisionHawk, the Assembly of Collectors is about for Jan. 24, 2024. Discipline Group, which acquired PrecisionHawk, in itself might be beginning considerably anew in 2024. That features new possession after being acquired by current shareholders.
Whereas sure buyers will purchase Discipline Group’s conventional enterprise, former Discipline Board Chair Arild Austigard and companions are set to accumulate Discipline Group’s drone exercise. With that main change comes a full refinancing of the enterprise in a brand new firm construction.
Discipline’s UAV division will proceed engaged on unmanned expertise and inspection companies. Although, they may function below a brand new entity and a brand new model.
“I’m happy that we’ve discovered an answer for Discipline Group the place we are able to take over the possession of the drone actions within the firm,” Austigard stated in a ready assertion. “Using drones is a part of the longer term answer that each ensures environment friendly options and the environmental challenges we face, and the staff in Discipline Group working within the drone enterprise have what it takes to reach the longer term.”
So far as what different firms may fill the void set by the tip of PrecisionHawk? Different firms that supply comparable companies to PrecisionHawk embrace San Francisco-based DroneDeploy, which builds software program to automate flight and knowledge seize. With DroneDeploy, customers generate interactive maps, orthomosaics and 3D fashions.
