Drone Maker 3D Robotics Trying To Raise Additional $45 Million In Shift To Enterprise Market
Drone maker 3D Robotics, which has struggled with high-level departures and layoffs, is seeking to raise $45 million, according to a new document filed with the Securities and Exchange Commission.
The document details that the company is offering $45 million worth of shares, but has only sold $26.7 million of them. It still has another $18.3 worth of shares to sell to meet its goal.
Previously, the company had raised a total of $106 million, with last year’s Series C round valuing the startup at $334 million, according to PitchBook.
The company has faced challenges lately. Earlier this year, it laid off an undisclosed number of people. Last year, its cofounder Jordi Munoz also left the company. In an interview with MarketWatch, 3DR co-founder and CEO Chris Anderson said the company would be shifting its focus towards the corporate market, where profit margins are typically larger.
Its latest consumer drone, Solo, launched last year with a base price of $1,000 to decent reviews, but the company is having a tough time competing against Chinese-based drone maker DJI. DJI currently accounts for half of the drones sold in North America, whereas 3DR achieved only a 7% share, according to NPD Group. DJI’s new $1,399 Phantom 4 drone comes with a number of sensors and processor that enables it to sense and avoid objects.
Meanwhile Chinese smartphone maker Xioami is also getting into the drone market as it searches for new growth opportunities. Its Mi Drone comes equipped with a 4K resolution camera and costs just $460.