Lots of drone tech going on

Fewer than five VC-backed drone deals between 2010 and 2012, morphed into more than 10 in 2013 and then 29 in 2014.

FAA drone restrictions or not, VCs are putting more money on more drone deals than ever.

CB Insights reports drone startup funding took off in 2013, ?just before Amazon announced [December 2013] that it planned to use the devices for delivery in the future.?

See related: FAA Issues Semi-Drone-Friendly Guidelines. Yes, airborne cameras; no, Amazon Prime; killer rule: VLOS only!

Top five drone companies admired most by VCs

According to CB Insights: Here are the five best-funded drone startups:

• $40 million: Airware. This San Francisco company led by CEO Jonathan Downey has raised several rounds of funding since it was founded in 2011. Its most recent funding came from GE Ventures in November and the amount wasn’t disclosed. Other backers include Andreessen Horowitz, Kleiner Perkins Caufield & Byers, Google Ventures, Shasta Ventures, First Round Capital and Felicis Ventures.
• $35+ million: 3D Robotics.More than $35 million. Led by CEO Chris Anderson in San Diego, this company has raised three rounds of funding since launching in 2009. Its latest round was an undisclosed amount from Virgin Air founder Richard Branson. Other backers include True Ventures, Foundry Group, Mayfield Ventures, SK Ventures and O’Reilly AlphaTech Ventures.
• $20 million: XAircraft. Based in Guangzhou, China, far from the FAA’s reach. It raised its only round of funding in September from Chengwei Capital.
• $13.2 million: Skycatch. San Francisco-based drone startup, led by CEO Christian Sanz. It was founded in 2013 and its backers include Google Ventures, Sherpalo Ventures, SK Ventures and ff Venture Capital.
• $10 million: Cyphy Works. Danvers, MA-based. Founded in 2008 by CEO Helen Greiner (former iRobot founder). Backers include General Catalyst Partners, Felicis Ventures and Lux Capital.

Reaction to FAA ruling from LuxCapital partner Bilal Zuberi:

LuxCapital?s website says: ?Bilal Zuberi partners with and invests in entrepreneurs working on big, bold, brave ideas in Energy, Technology and Healthcare.

Bilal manages Lux?s investments in Evolv Technology (security), CyPhy Works [Helen Greiner’s drone company], LensBricks (computational imaging) and Orbital Insight (big data analytics).

Bilal Zuberi: At Lux Capital, we believe:

• The FAA drone regulatory document is a big step forward, a watershed moment, in the future of aerial robotics.
• Investors will no longer need to discuss product and technology innovation roadmaps of drone companies in the context of baseless rumors & leaked documents regarding s confusing and regulatory environment.
• The drone industry is taking a collective sigh of relief that FAA is approaching regulations with a somewhat practical and common sense approach. Earlier leaked memos etc. had cultivated a fear of draconian, irrational laws. Those fears were unfounded.
• We hope the FAA will instill a greater degree of transparency in its process as it continues to use the regulatory process to fully integrate drones into our commercial airspace.
• Technology in the drone space is evolving rapidly, from navigation systems to control, optical stabilization, lidar based sense and avoid to fleet management, compliance and insurance. We should continue to see great things emerge form this industry that is currently attracting some of the smartest minds in engineering.

“I’ve often seen investors discussing what FAA regulatory bottlenecks might look like, and if it was ?the right time for this technology??

“Regulatory uncertainty kept many investors on the sidelines. Clarity from FAA should help all such investors, including those interested in investing in not-technology but service businesses built downstream.”