Hoverfly Technologies Announces $20 Million Series B Funding to Drive Expansion and Enhance Domestic Drone Capabilities
Hoverfly Technologies, a leading company in tethered drone systems for defense and security, has announced the successful closing of its $20 million Series B funding round. This investment was led by existing investor Leonardo DRS Inc. (Nasdaq: DRS), and new partner Korea Robot Manufacturing (KRM). The funds will support Hoverfly’s continued leadership in the fast-growing tethered drone sector, which plays a key role in U.S. and allied defense efforts.
Leonardo DRS (DRS) a provider of advanced defense technologies, contributed $15 million to this round, reinforcing its confidence in Hoverfly’s business strategy and future growth. As part of this investment, Hoverfly entered a manufacturing agreement with DRS to expand production of the Hoverfly Sentry and establish a new line for the Hoverfly Spectre system.
“Our ongoing investment in Hoverfly Technologies highlights our strong belief in their innovative drone solutions,” said Aaron Hankins, Senior Vice President and General Manager of Leonardo DRS Land Systems Business Unit and member of the Hoverfly Board of Directors. “This collaboration improves U.S. defense capabilities through increased domestic production and supports our shared commitment to national security.”
Korea Robot Manufacturing Co., Ltd. (KRM) is a South Korean engineering and manufacturing firm specializing in sensors and advanced technologies for quadrupedal robots and UAVs. KRM invested $5 million in this round and, as part of its U.S. expansion, will collaborate with Hoverfly to set up a new facility for producing key components domestically - strengthening support for the U.S. defense industry and improving supply chain resilience.
To ensure long-term stability in sourcing critical materials, KRM has established a secure supply channel for high-performance components through a strategic partnership outside traditional high-risk regions. This guarantees Hoverfly access to essential inputs from reliable U.S.-based sources. With this investment, KRM becomes Hoverfly’s exclusive manufacturer of certain components and preferred supplier for future needs.
“Working with Hoverfly enables us to build a U.S.-based supply chain for vital UAV parts, a move aligned with national security priorities, especially given import restrictions from high-risk areas,” commented Kwangsik Park, CEO of KRM.
Both DRS and KRM will now act as official resellers and integrators of Hoverfly’s Sentry and Spectre systems, further increasing Hoverfly’s global market presence and production capacity.
“This funding round is a landmark event for our company,” stated Steve Walters, CEO of Hoverfly Technologies. “With the support of world-class partners like DRS and KRM, we’re ready to quickly scale operations, expand our product range, and enter new markets, solidifying our market leadership and advancing U.S. drone capabilities.”
Hoverfly’s latest investment comes at an important time as the U.S. Department of Defense prioritizes secure, American-made unmanned systems. As the only tethered drone on the DIU Blue List, Hoverfly’s technology offers a trusted, domestically sourced alternative to foreign drones, directly supporting U.S. national security goals.
By partnering with KRM, Hoverfly is taking initial steps toward developing custom and widely used expendable drone components. The goal is simple: leverage KRM’s engineering expertise and reliability to provide U.S. users with affordable, high-performing technology.
Hoverfly’s newest capability NEXUS (Network Extension of Unmanned Systems) meets the growing need for unmanned ecosystems, a critical infrastructure highlighted by the war in Ukraine. Adopted by the U.S. Army and showcased with industry partners, NEXUS allows Hoverfly drones to operate as targeting and command-and-control systems, greatly extending ranges Beyond Visual Line-of-Sight (BVLOS) for ISR, FPV, and loitering munitions across land, sea, and air. This innovation positions Hoverfly as a leader in the next phase of U.S. drone defense evolution.
Although the tethered drone market remains specialized, it is rapidly expanding, with forecasts predicting growth from about $140 million in 2023 to over $2.6 billion by 2032, a combined annual growth rate of 38%. Hoverfly has already sold more than 800 tethered drones to U.S. and allied defense clients, demonstrating robust market demand and proving that its technology fulfills mission-critical needs for persistent ISR, targeting, and tactical network extension.