Pentagon Buys Counter-Drone Tech Draw Investor Interest

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The Defense Department is seeking technology to counter rivals such as China and Russia, and a wave of government spending on anti-drone technology and other autonomous systems has attracted the attention of venture capitalists.

Government buyers have spent nearly $1 billion in unclassified “unmanned” contract awards, according to Bloomberg Government data, and innovative offices like the Air Force’s new Task Force 99 are calling for more.

The technology behind DOD’s anti-drone capabilities has applications beyond security and warfare, providing a vision for future urban mobility and logistics networks.

Several anti-drone startups have received funding from venture firms and large defense contractors this year.

Fortum Technologies announced a $17.8 million investment on February 21 from investors Lockheed Martin Ventures, Hanwha Aerospace and AIM13|CVP. On the same day, Hidden Level announced a new round from Booz Allen Hamilton’s venture arm. Details of that round have not been disclosed.

Both treaties use innovations in anti-drone technology.

“It’s defining a new generation of warfare,” Fortum Technologies CEO John Gruen said in an interview. “All governments and companies need to re-evaluate what systems they are purchasing, and the US government is no different.”

Fortum develops technology designed to intercept or neutralize incoming drones. Its purpose is to prevent or minimize collateral damage from an unmanned aerial vehicle falling to earth in an uncontrolled manner after being shot down or disrupted.

The company’s equipment has been deployed in Ukraine to combat Iranian drones used by Russian troops.

More than protection

The future of aviation is not limited to airplanes and helicopters, but includes thousands of drones, vertical aircraft such as air taxis, and a whole host of autonomous aerial vehicles.

Programs such as the Air Force AFWERX Technology Initiative aim for research and development into electric vehicles and similar goals — leveraging the DOD’s desire to move startups to present their offerings to domestic regulators.

Hidden Level CEO Jeff Cole relayed that working with the DOD on anti-drone capabilities is simply to provide cities with the infrastructure needed for advanced urban mobility and drone-powered logistics networks.

Our goal is not to focus on what we call the point guard of an entity, but ‘how do we cover really large areas like entire cities with minimal infrastructure?’ “We finally said, ‘Hey, we can do this very cost-effectively.’ The same hardware we use in that space is very similar to what we can use with our defense customers.’ So it’s very integrated.”

This infrastructure is the missing link in the future of urban mobility and logistics, even as modern drone and autonomous aircraft technologies continue to grow. Without a way for governments to monitor and coordinate air traffic, these new systems cannot be deployed.

Wes Blackwell, with Booz Allen Ventures, recalls his time as a naval aviator 15 years ago working with vertical takeoff aircraft: “You go in there and they have Ospreys and they still have Harriers flying and all kinds of helicopters. And then I was flying the Seahawk and, like, ‘I’m in Transformers, right?’ But if you think about Jeff’s painting, that’s the future,” he said. “It’s closer than you think, and it’s coming to every city near you.”

Defense contracts that fund the creation of these networks for the battlefield have given these industries a boost.

Counter Drone companies like Fortem and Hidden Level promote services to sports venue and airport owners, event organizers and anyone else looking for drone-based security. Fortum recently provided security services for the FIFA Men’s World Cup in Qatar.

“The core technology we’re building and delivering in this defense market will be applicable to the infrastructure needed for future mobility, even autonomous vehicles, and how future urban environments will operate,” Gruen said.

“We’re working with a number of partners—state governments, municipalities, people like Walmart and their last-mile delivery—all with forward-thinking mobility and logistics. There is certainly a strong desire to see it implemented,” he said.

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