Skydio Raises $170M for Drone Product Development, Sales Expansion

Skydio has generated $170 million from its round of Series D funding with venture capital firm Andreessen Horowitz as the lead investor.

The Redwood City, California-based drone manufacturer said Tuesday it will use the new capital to develop products and launch initiatives to address a growing demand for its unmanned aerial systems.

IVP, Linse Capital, Next47 and UP.Partners participated in the transaction, which brings the total funds Skydio raised to more than $340 million with an approximately $1 billion valuation.

“This is an important milestone for us as a company, but also for the U.S. drone industry," said Adam Bry, co-founder and CEO of Skydio.

“Together with our customers, we’re proving that a U.S. company can lead the way in this industry through AI and autonomy.”

Skydio introduced its AI-enabled Skydio 2 unmanned aerial vehicle in 2019 and announced last month it will perform integration work on the Skydio X2D short-range reconnaissance platform under an other transaction agreement with the U.S. Army.

The company plans to release its X2 drone and Skydio 3D Scan visualization software later this year.

The Defense Innovation Unit named Skydio among the five companies that can sell authorized drones on the General Services Administration's Schedule program.