PrecisionHawk, which at one level was one of many greatest drone business giants isn’t 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 may also shut down its headquarters in downtown Raleigh, North Carolina.
“The corporate didn’t have ample 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 response to its chapter filings, the corporate owes $242,667 in unpaid lease on its headquarters. That debt is barely a tiny fraction of the $17.5 million price of debt it holds, in line with its chapter submitting. The corporate has simply round $3.8 million in belongings, which a court-appointed trustee can be accountable for utilizing to pay collectors. Although, unsecured collectors ought to count on to get nothing out of the submitting,
A lot 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 business. Based in 2010, it touted purchasers together with 5 of the highest 10 utility firms, the biggest supplier of communications infrastructure in the US, and the “Large Six” suppliers of seed and agricultural chemical compounds.
By 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 resembling 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 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, resembling 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 sequence B, and a hefty $32 million sequence E in 2019. The yr prior, it raised an excellent larger $75 million.
However particularly prior to now yr, it’s turn into clear that PrecisionHawk was having bother. Most of that new got here to gentle 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 develop to the U.S. market. Subject acknowledged that it will 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 preserve its Raleigh headquarters and function below the Subject model by the top 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 quick time period,” stated 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’ve needed to shut the workplace.”
What’s subsequent for PrecisionHawk and what is going to fill its void?
As for what’s subsequent for PrecisionHawk, the Assembly of Collectors is about for Jan. 24, 2024. Subject Group, which acquired PrecisionHawk, in itself can be beginning considerably anew in 2024. That features new possession after being acquired by current shareholders.
Whereas sure buyers will purchase Subject Group’s conventional enterprise, former Subject Board Chair Arild Austigard and companions are set to amass 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 expertise and inspection providers. Although, they’ll function below a brand new entity and a brand new model.
“I’m happy that we’ve discovered an answer for Subject 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 resolution that each ensures environment friendly options and the environmental challenges we face, and the staff in Subject Group working within the drone enterprise have what it takes to achieve the longer term.”
So far as what different firms may fill the void set by the top of PrecisionHawk? Different firms that supply related providers 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.