Mentioned:
Axon is betting over a billion dollars on a private drone company. But, why?
What’s happening:
- Axon (NASDAQ: AXON) has committed $1.2B USD in funding to drone maker Skydio
Why it matters:
- This is the single largest strategic investment that Axon has ever made
Going deeper:
- Axon will fund the new $1.2B USD investment through a mixture of cash and issuing equity
- Skydio will make Axon their exclusive public-safety distributor in the United States and Canada as part of the new investment
- Skydio has publicly stated that they have more than 1,500 public-safety agencies as customers, many of which dispatch their drones as first responders to 911 calls and emergencies
The intrigue:
- Legendary Silicon Valley venture capital fund a16z is a seed investor in Skydio
The fine print:
- Roughly 80% of Axon’s new funding will go towards buying out existing shareholders of Skydio through a secondary sale
