Mentioned:
Lockheed Martin’s venture capital arm is doubling down on cargo drones. But, why?
What’s happening:
- Elroy Air has publicly stated they have $175M USD in funding commitments for an equity financing round concurrent with their SPAC transaction with Inflection Point Acquisition Corp VII (NASDAQ: IPXG)
By the numbers:
- $75M USD of the equity financing round is already funded and the remaining $100M USD is contingent on the SPAC transaction closing
Why it matters:
- Lockheed Martin’s (NYSE: LMT) venture capital arm has committed to participating in the new equity financing round in Elroy Air
Going deeper:
- Elroy Air’s flagship hybrid-electric Chaparral aircraft is capable of autonomously transporting more than 300 pounds of cargo and taking off and landing vertically without a runway
- Elroy Air’s SPAC deal with Inflection Point Acquisition Corp VII gives them a valuation of roughly $800M USD
- Lockheed Martin’s venture capital arm previously invested in Elroy Air in a private funding round
The intrigue:
- The United States Army, Marine Corps and Air Force all have existing research and development contracts and demonstration programs with Elroy Air focused on autonomous aerial cargo and resupply missions
