PrecisionHawk, which at one level was one of many greatest drone trade giants is not any extra. The corporate, recognized 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 will even shut down its headquarters in downtown Raleigh, North Carolina.
“The corporate didn’t have enough capital to take care of operations,” Jason Hendren instructed the Information & Observer, a newspaper serving the Raleigh, North Carolina space. Hendren is a chapter lawyer in Raleigh who’s representing PrecisionHawk
In keeping with its chapter filings, the corporate owes $242,667 in unpaid lease on its headquarters. That debt is just a tiny fraction of the $17.5 million price of debt it holds, in accordance with its chapter submitting. The corporate has simply round $3.8 million in property, which a court-appointed trustee will likely be accountable for utilizing to pay collectors. Although, unsecured collectors ought to anticipate to get nothing out of the submitting,
Many of the firm’s workers 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 trade. Based in 2010, it touted purchasers together with 5 of the highest 10 utility corporations, the most important supplier of communications infrastructure in america, and the “Large Six” suppliers of seed and agricultural chemical compounds.
By means of 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 circumstances similar to agriculture, vitality, photo voltaic, oil & gasoline, and telecom.
And it had scored some sturdy wins, notably when DJI introduced it will drop PrecisionHawk-competitor AirMap and exchange it with PrecisionHawk as its new supplier of airspace knowledge in North America. With that 2018 change, PrecisionHawk turned the geofencing know-how supplier behind DJI’s drones. Drone geofencing is a know-how 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 Sequence A via E funding rounds, PrecisionHawk raised greater than $136 million. That included $10 million from Intel Capital in it sequence B, and a hefty $32 million sequence E in 2019. The yr prior, it raised a good larger $75 million.
However particularly previously yr, it’s grow to be clear that PrecisionHawk was having hassle. Most of that new got here to mild shortly after Norway-based UAV inspection and mapping firm Subject acquired PrecisionHawk in March 2023.
On the time, Subject noticed the PrecisionHawk acquisition as a possibility to increase to the U.S. market. Subject said that it will use PrecisionHawk’s synthetic intelligence and drone know-how firm for infrastructure administration with its purchasers, which included a number of Fortune 500 corporations. In a March 2023 press launch sharing information of the acquisition, the corporate said that PrecisionHawk would preserve its Raleigh headquarters and function below the Subject model by the tip of the yr.
As a substitute, Subject introduced in October 2023 that it will shut the PrecisionHawk workplace in Raleigh, North Carolina.
“We knew it will be a problem to make PrecisionHawk worthwhile within the brief time period,” mentioned Krister A. Pedersen, who stepped in as interim CEO of Subject 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 now have 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 ready for Jan. 24, 2024. Subject Group, which acquired PrecisionHawk, in itself will likely be beginning considerably anew in 2024. That features new possession after being acquired by present shareholders.
Whereas sure traders will purchase Subject Group’s conventional enterprise, former Subject Board Chair Arild Austigard and companions are set to accumulate Subject Group’s drone exercise. With that main change comes a full refinancing of the enterprise in a brand new firm construction.
Subject’s UAV division will proceed engaged on unmanned know-how and inspection companies. Although, they may function below a brand new entity and a brand new model.
“I’m happy that we now have discovered an answer for Subject Group the place we are able to take over the possession of the drone actions within the firm,” Austigard mentioned in a ready assertion. “The usage of drones is a part of the long run answer that each ensures environment friendly options and the environmental challenges we face, and the workers in Subject Group working within the drone enterprise have what it takes to reach the long run.”
So far as what different corporations would possibly fill the void set by the tip of PrecisionHawk? Different corporations that supply related companies to PrecisionHawk embody San Francisco-based DroneDeploy, which builds software program to automate flight and knowledge seize. With DroneDeploy, customers generate interactive maps, orthomosaics and 3D fashions.