PrecisionHawk, which at one level was one of many largest drone business giants is not any extra. The corporate, identified for utilizing drones to seize agricultural information, 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 keep up 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 keeping with its chapter filings, the corporate owes $242,667 in unpaid lease on its headquarters. That debt is simply a tiny fraction of the $17.5 million value of debt it holds, in response to 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 anticipate to get nothing out of the submitting,

Many of the firm’s staff 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 most important supplier of communications infrastructure in america, and the “Large Six” suppliers of seed and agricultural chemical substances.

By way 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 purposes and information processing. It centered on enterprise use circumstances reminiscent of agriculture, power, photo voltaic, oil & gasoline, and telecom.

And it had scored some robust wins, notably when DJI introduced it could drop PrecisionHawk-competitor AirMap and exchange it with PrecisionHawk as its new supplier of airspace information 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, reminiscent of 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 by way 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 a fair greater $75 million.

However particularly up to now yr, it’s grow to be clear that PrecisionHawk was having hassle. 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 broaden to the U.S. market. Subject acknowledged that it could use PrecisionHawk’s synthetic intelligence and drone know-how 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 maintain its Raleigh headquarters and function below the Subject model by the tip of the yr.

As an alternative, Subject introduced in October 2023 that it could shut the PrecisionHawk workplace in Raleigh, North Carolina.

“We knew it could 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 have now 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 can be beginning considerably anew in 2024. That features new possession after being acquired by present 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 know-how and inspection providers. Although, they may function below a brand new entity and a brand new model.

“I’m happy that we have now 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 long run answer 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 long run.”

So far as what different firms would possibly fill the void set by the tip of PrecisionHawk? Different firms that supply comparable providers to PrecisionHawk embody San Francisco-based DroneDeploy, which builds software program to automate flight and information seize. With DroneDeploy, customers generate interactive maps, orthomosaics and 3D fashions.

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