US-based unmanned aerial vehicle producer CyPhy Works closed a $22m series B round yesterday featuring communications technology equipment maker Motorola Solutions and logistics services provider UPS.
Motorola participated through its investment vehicle Motorola Venture Solutions while UPS contributed money through its Strategic Enterprise Fund. Venture capital firm Bessemer Venture Partners led the round, with Draper Nexus, Lux Capital and General Catalyst Partners also taking part.
Founded in 2008, CyPhy manufactures drones for use in industries including defence, natural resources management, agriculture, mining, law enforcement and entertainment.
The cash will support the commercial launch of CyPhy’s Persistent Aerial Reconnaissance and Communications technology, which enables drones to stay in the air indefinitely. The company also intends to expand its engineering, sales, marketing and customer support teams.
Draper Nexus was reported to have invested in CyPhy in May this year, though the company has not disclosed whether the investment represented Draper Nexus’ contribution to the series B round.
Motorola Venture Solutions provided $2.5m for CyPhy in March 2015, revealed in a regulatory filing to be in the form of debt. It has not been disclosed whether Motorola’s involvement in the series B round is a conversion of that debt or a separate commitment.
Lux Capital led CyPhy’s $7m series A round in 2013, which included Felicis Ventures, General Catalyst Partners and several unnamed angel investors. CyPhy had previously obtained a total of $3m in seed funding over two rounds in 2010 and 2011, with General Catalyst backing the earlier round.