Hoverfly Technologies, a leader in tethered drone systems for defense and security, announced the completion of its Series B funding round at $20 million. This funding round was led by existing investor Leonardo DRS (a well-established player in advanced defense technologies) alongside new partner Korea Robot Manufacturing (KRM), a South Korean company specializing in robotic and sensor technology.
This investment stands as the largest single capital raise in the company’s history, and is set to propel Hoverfly’s continued leadership in the tethered drone sector, an area vital to U.S. and allied defense initiatives. Leonardo DRS contributed a substantial $15 million to this funding effort, reinforcing its unwavering confidence in Hoverfly’s innovative business model and its strategic vision for sustained growth in an increasingly competitive market.
As part of this deal, Hoverfly and DRS have entered into a manufacturing partnership to boost the production capabilities for the Hoverfly Sentry, while also initiating a new production line for the cutting-edge Hoverfly Spectre system, which has garnered significant interest within defense circles.
Korea Robot Manufacturing Co., Ltd. (KRM), with its expertise in engineering and manufacturing advanced technologies for both quadrupedal robots and unmanned aerial vehicles (UAVs), invested $5 million in this funding round. This collaboration marks KRM’s strategic entry into the U.S. defense market.
To facilitate this expansion, KRM will work with Hoverfly to establish a state-of-the-art facility dedicated to the domestic production of essential components. This joint venture aims to enhance logistical support for the U.S. defense sector while simultaneously strengthening the resilience of the supply chain, which has become increasingly important in today’s geopolitical landscape.
In a move to ensure long-term stability and reliability in sourcing critical materials, KRM has secured a dependable supply of high-performance components through a strategic partnership with a supplier located outside traditional high-risk regions. This proactive approach ensures that Hoverfly has continuous access to a stable, U.S.-based supply of these critical inputs, thereby mitigating potential risks associated with global supply chain disruptions. Through this investment, KRM will be positioned as Hoverfly’s exclusive manufacturer for key components and will also serve as the preferred vendor for any future component requirements.
Both Leonardo DRS and KRM will take on roles as official resellers and integrators of Hoverfly’s Sentry and Spectre systems. This partnership not only enhances Hoverfly’s production capacity but also expands its global reach, allowing it to better serve clients across different regions and sectors.
Hoverfly’s investment comes at a notable time, aligning perfectly with the U.S. Department of Defense’s increasing focus on developing secure, American-made unmanned systems. As the only tethered drone featured on the Defense Innovation Unit’s (DIU) Blue List, Hoverfly’s advanced technology provides a reliable, domestically-sourced alternative to foreign drone manufacturers, thus directly supporting U.S. national security objectives amidst growing concerns about reliance on foreign technologies.
By partnering with KRM, Hoverfly is strategically positioning itself to delve into the development of custom, widely adopted, expendable drone key components. The objective is straightforward: capitalize on KRM’s superior engineering capabilities and reliability to deliver U.S. end-users with cost-effective, high-performance technological solutions tailored to their operational needs.
Hoverfly’s latest technological advancement, known as NEXUS (Network Extension of Unmanned Systems), responds to the rapidly increasing demand for comprehensive unmanned ecosystems—an essential infrastructure that has surfaced prominently due to the war in Ukraine. NEXUS has been conceptually recognized and adopted by the U.S. Army, and its capabilities have been demonstrated alongside a range of industry partners.
This capability enables Hoverfly systems to act not only as targeting instruments but also as command and control systems, significantly extending operational ranges Beyond Visual Line-of-Sight (BVLOS). This capability is crucial for Intelligence, Surveillance, and Reconnaissance (ISR) efforts, First-Person View (FPV) operations, and loitering drone munitions across diverse operational domains, including land, sea, and air. As such, this innovative function establishes Hoverfly as a combat multiplier, positioning the company at the forefront of the next evolution in U.S. drone defense technologies.
Hoverfly has already made a significant impact in this market, having sold over 800 tethered drones to both U.S. and allied defense customers. This level of sales demonstrates strong market traction and highlights how Hoverfly’s innovative technology effectively addresses mission-critical needs for persistent ISR, targeting capabilities, and tactical network extension for defense operations.
KEY QUOTES:
“Our continued investment in Hoverfly Technologies reflects our unwavering confidence in their innovative tethered drone solutions. This partnership enables us to bolster U.S. defense capabilities through expanded domestic production and aligns with our shared commitment to strengthening national security.”
Aaron Hankins, Senior Vice President and General Manager of the Leonardo DRS Land Systems Business Unit, and a member of the Hoverfly Board of Directors
“Partnering with Hoverfly enables us to establish a U.S.-based supply chain for critical UAV components—a strategic move aligned with national security priorities, especially amid restrictions on imports from traditional high-risk regions.”
Kwangsik Park, CEO of KRM
“This funding round marks a defining moment for our company. With the backing of world-class international partners like DRS and KRM, we are poised to rapidly scale operations, expand product offering, and capture new markets, to further establish our market leadership and continue delivering systems that advance and unleash U.S. drone dominance.”
Steve Walters, CEO of Hoverfly Technologies
