INDUSTRY SPOTLIGHT

Drones

Enter the burgeoning yet fiercely competitive drone industry and find the keys to effective market positioning, securing funds, propelling business growth, and tackling obstacles head-on.

Drone future takes off today

Fueled by technological advancements, societal needs, law adjustments, and global collaboration, the drone industry is skyrocketing. And the record $7 billion funds infusions in 2021 fan the flames. As the world continues to recognize the multifaceted applications of drones, from delivering packages to saving lives, the market is destined for further expansion. And so are the opportunities for startups…

If only it weren’t so hard to make a splash

In the drone industry, progress and competition walk in lockstep. The market is promising and bountiful, thus appealing to newcomers. Smelling the fresh blood, the top dogs like DJI and Parrot are donning their armor, preparing to face the mounting pressure.

Regulations also play hard on startups. First, drone specifications vary widely by jurisdiction. Second, law implementation is still in its middle-to-final stage. Thus…

You’ll need more than a cool idea!

With substantial expertise in devising effective go-to-market strategies, delivering sharp pitches, and helping startups secure venture capital, Waveup is well-equipped to drive your business growth. We’ll help you unlock the key to successfully executing your idea, turning potential into reality. Let’s take the first step and check the drone industry market research.

2x growth
The drone industry is projected to double in size by 2030.

 

40%
The expected increase of drones usage in agriculture within the next five years.

 

30+
Countries have already established regulatory protocols for commercial drones.

Propelled by technological advancements, regulatory shifts, and diverse applications
>65%

More than 65% of the total revenue in the drone industry goes to the consumer drone market.

2x growth

In drone startup funding between 2018 and 2020.

$9.6B

Is spent on drones by the military.

VENTURE LANDSCAPE

In 2022, the drone industry funding reached $4.8B

Core segments, the major funds infusions go, are:

  • Consumer Drones and Agriculture Drones
  • Military and Defense Drones
  • Commercial and Industrial Inspection
  • Drone Delivery and Logistics
  • Healthcare and Medical Drones

Leading drones venture capital firms we worked with

Write to us to know more

WAVEUP VIEW

Barriers drone startups come across

Running with the big dogs

With the deep pockets for research and development coupled with strong brand recognition, drone giants such as DJI, Parrot, Yuneec, and Autel Robotics dominate the market, making it harder for new entrants to stand out. But harder doesn’t mean impossible. Judging by the recent deals where Zipline secured mind-blowing $330M in funding, with unconventional tactics, agility, creativity, and innovation, newcomers have every chance to break ahead.

A tightrope walk of compliance

There is no bigger hurdle than drone regulations. Compliance with the diverse legal requirements across different countries can be both expensive and time-consuming. Some issues, such as SORA standards, can be resolved in the short term, while others, such as BVLOS standards, may take 3 to 5 years, seriously affecting businesses’ top line.

Climbing the financial mountain

High development costs, regulatory concerns, monetization challenges, long sales cycles in B2B markets… And this is only the tip of the iceberg when it comes to fundraising-related issues. Nimble startups like Percepto are hitting the jackpot, raising $67 million in funding, while others like Lily Robotics are throwing in the towel.

How we can help

Startups
Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning drone pitch deck.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for drone startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQ

What makes the industry appealing for drone financing opportunities?

Judging by how the drone venture capital has been growing during the last 5 years, jumping from $2.4 billion to $7 billion, the drone industry is of great interest for potential investors.

What is the current size of the drone market, and its potential for future drone startups?

According to our drone market research, the market value constituted $38.03 billion in 2022 and is going to grow at an annual rate of 10%. The drone industry is expanding rapidly, providing various opportunities for startups, starting from solving delivery issues and ending by contributing to government affairs.

How challenging is it to secure funding for drone startups nowadays?

While there is growing interest in the drone industry, especially in sectors like agriculture, logistics, and surveillance, investors may still be selective, focusing on innovation, feasibility, regulatory compliance, and a clear path to profitability.

How long does it take to create a drone pitch deck and a financial model for a drone startup?

The duration of project execution is influenced by its complexity and our current worldload. Generally, we can craft the materials in a span of two to three weeks, but occasionally, the timeline may extend to an entire month. Therefore, it’s advisable to discuss time frames on a case-by-case basis.

What are the key mistakes drone startups make in their pitch decks?

The absence of a compelling investment story, evidence of market momentum, insights into the founders’ choice of this specific field and timing, coupled with an overload of technical jargon, diminish the appeal of drone pitch decks for potential investors.

What are the main challenges drone startups face, and how are they tackling them?

Fierce competition and legal hurdles make the path to success more challenging. However, close cooperation with regulatory bodies and participation in shaping the regulations along with pursuit for innovation and agility help drone businesses to address the following obstacles.

How competitive is the drone market?

The drone market is highly competitive, flooded by well-established tech giants and innovative newcomers, all vying for a share in various sectors such as agriculture, delivery, surveillance, and entertainment.

What services do you provide for investors who are either considering or have already invested in drone startups?

We help investment funds conduct thorough due diligence on potential drone projects to determine their investment viability. Additionally, we offer complete fundraising assistance to the portfolio companies of our partner funds.

Do you provide drone M&A support?

Certainly, we offer assistance in finding M&A opportunities, creating CIMs, and performing modeling for both buy-side and sell-side transactions.

Do you make intros to drone VCs?

If the funding round size, your team, and product line up, we can connect you with some leading drone venture capitalists. What we’re really great at, though, is crafting outreach strategies to ensure those first meetings with interested investors run smoothly.

Do you provide comprehensive drone market research on request?

We’ve got the tools to provide custom research solutions using the latest data on the drone market. Since the drone world is full of different bits and pieces—like various product types, regions, and business models—we’re ready to mix and match our research to fit exactly what you need.

Which drone startup funding stages do you assist with?

We know the ropes when it comes to guiding projects from the Seed stage right up to Series B in the drone industry. Additionally, we provide support to companies in the pre-seed phase, the Series C+ stages, and also foster collaborations with the top market players and investment funds.

Industries we work with

Have a drone project in mind? Talk to us

One of our unique advantages lies in our constant exposure to the new & emerging industries and sectors, thus giving us an unparalleled expertise in the areas of innovative business models, disruptive technologies and the latest industry trends.

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