At Aerial Cities 2024, the conversation turned toward one of the most critical — and often intimidating — topics for any drone or robotics startup: how to secure funding and scale a business in today’s economic climate.
This panel session tackled the core pillars of investment readiness; from business strategy, revenue generation, and market positioning to operational de-risking and regulatory preparedness. Panellists explored the dangers of market fragmentation, the need for companies to escape the pilot project cycle, and why financial discipline and real-world use cases are now more important than ever in attracting capital. With perspectives from both investors and founders, the session delivered clear, grounded advice for any startup looking to grow beyond proof of concept and build something truly sustainable.
Moderated by Kara Jones, Director of GENIUS NY, this discussion brought together corporate leaders and investment experts including Mark Green, Managing Director & Head of Technology Banking at Ladenburg Thalman; Eric Brock, Founder, Chairman & CEO of Ondas Holdings; Gwen Lighter, CEO of GoAero; Philip Buchan, COO at Cyberhawk; and Alex Pachikov, Co-Founder & CEO of Sunflower Labs — each offering a unique vantage point on what works (and what doesn’t) when building a venture designed for long-term, scalable success.
Why access to capital remains a challenge for drone startups
Kicking off the session, Ondas Holdings’ Eric Brock provided an honest but realistic view of the drone investment landscape.
While many point to regulatory or technical barriers, Eric argued that the drone industry’s biggest problem is market fragmentation. With too many companies chasing the same funding and customer attention, capital and revenue are being spread out across the sector and consequently weakened.
“There’s too many companies… we’re spreading capital, we’re spreading customer activity, we’re spreading revenue dollars too thinly,” he said.
Essentially, Eric explained that while regulation has advanced and technical capability is accelerating, the volume of companies chasing the same contracts and capital has outpaced market maturity.
His message was clear: Only those with differentiated offerings, clear strategies, and consolidated resources will be positioned to scale.
Ladenburg Thalman’s Mark Green expanded on the challenge by framing it from the investor’s side. He explained that raising money today requires more than just an idea or a prototype; what matters is execution.
“You need a plan, even if it might not be the right plan,” he explained, stressing that companies must demonstrate discipline, market knowledge, and perhaps most importantly the ability to stick to — and deliver on — their business roadmap.
On that note, Gwen Lighter emphasised that many startups focus too heavily on vision without grounding that vision in real markets and applications.
“I have received hundreds and hundreds of pitches where it is both pie in the sky valuation and pie in the sky execution,” she explained.
Gwen encouraged companies to articulate how their technology will be used in the real world and to anchor their fundraising efforts in operational reality.
What makes a drone company investable
The panellists agreed that for unmanned aerial vehicle (UAV) and robotics ventures, investor expectations have become more rigorous. It’s no longer enough to have impressive technology. Investors are now focused on business fundamentals: real customers, revenue potential, and operational maturity.
Mark highlighted three key strategic pillars — corporate, business, and exit strategies — and explained that founders need to be intimately connected to the numbers.
“They need to be at one with their Excel spreadsheets. They need to feel like in the Matrix with their business plan.”
He also advised startups not to become underfunded in their early stages, warning that it creates a vicious cycle that many companies never escape.
Philip Buchan brought in Cyberhawk’s experience, describing how the company spent its early years exploring too many use cases before narrowing its focus to inspections in the energy sector. Once the business concentrated on profitability and repeatable operations, it was able to reinvest earnings and scale on its own terms.
He explained, “Probably the key thing for us was getting focused on something that made us money.”
Alex Pachikov noted that how a company defines itself can shape investor perception. At Sunflower Labs, the team now distances itself from the label of “drone company.” Instead, it positions itself within the broader robotics and security space.
“Saying that we are a drone company is now a net negative… but if we’re saying that we are a robotic security company and we happen to be flying, that seems to kind of turn the messaging around,” he highlighted.
All three agreed that being able to clearly articulate differentiation, scalability, and the business model is what makes the difference when speaking with investors.
Breaking out of the pilot project phase
One of the biggest obstacles to scalability discussed on the panel was the tendency for drone startups to become stuck in the pilot phase. For investors, pilot projects are no longer impressive — they are expected and often signal that a company is still proving its viability.
Alex described how Sunflower Labs measures engagement not by number of clients but by usage: flights per day, per site, per week, etc. This kind of data demonstrates that customers are not only adopting the product but integrating it into their daily operations.
“Pilot projects are the death of every startup in the space… it’s great to get one to get the first one. But if you’re still doing pilot projects, nobody cares,” he noted.
Philip shared how Cyberhawk navigated this challenge by focusing on industries with immediate and ongoing needs, such as utilities and oil and gas.
“At one point, a couple of years into the business, this year we are going to make a profit. And all our focus went on to how we were going to do that.”
Adding to the conversation, Eric emphasised that moving past the pilot phase means thinking beyond the drone itself. Investors are interested in how companies will operate at scale — from customer acquisition and fulfilment to regulatory approvals and field service.
He explained, “Investors aren’t really looking for you to tell your vision about your platform (...) they really want to understand how you’re putting together your operating plan.”
The message across the panel was consistent: Companies must show not just that their technology works, but that it is embedded in a business model that can be scaled and sustained.
Where the funding is — and how to access it
The conversation turned toward regional trends in drone investment and where opportunities are strongest heading into 2025. Mark spoke candidly about the contrasts between the U.S. and Europe.
“The US is a place focused much more on the dream of what a company can become,” he explained, in contrast with the UK, which “wants to look at what you did last year and maybe what you’ve done in the last quarter.”
Gwen shared how GoAero has taken advantage of this by building global partnerships through its emergency response aviation programme. With support from NASA, Boeing, RTX, and others, GoAero has attracted funding by aligning with public-good missions that governments and large corporates want to support.
“We play big on that emergency response, aviation for public good mission,” she emphasised.
Eric highlighted that autonomous drone systems, especially those with security or inspection applications, are attracting strong interest from both public and private sectors. These dual-use technologies are increasingly being seen as strategic assets in national infrastructure and defence — and that opens doors to funding opportunities outside traditional venture capital.
There was agreement that while U.S. capital markets remain more active, companies can unlock funding anywhere if they align with real-world problems and regulatory pathways.
De-risking, compliance, and scaling beyond technology
Another strong theme emerged throughout the panel: De-risking is no longer just about safety or product testing — it’s about business maturity. Investors want to see that companies have thought through compliance, operations, and scalability.
Alex described the effort required to make Sunflower Labs’ system viable in multiple jurisdictions.
“The certifications, CE certification, drone class certifications, cybersecurity certifications… it almost feels like the dirty work of the business,” he noted, explaining also that this work is critical to scaling beyond proof of concept and securing large contracts with companies like Tesla.
Eric explained that Ondas focuses heavily on supply chain readiness, support infrastructure, and ecosystem integration — all essential for delivering autonomous systems at scale.
“What is your supply chain? What is your field support? How are you building the ecosystem so you can use others’ talents and capabilities?” he asked, exemplifying questions he asks himself as Ondas’ Founder, Chairman & CEO.
Gwen explained that GoAero integrates regulatory mentors from day one, embedding Federal Aviation Administration (FAA) engagement directly into their technical workflows.
“We bring in the regulatory parties from the very beginning — and it’s a grassroots step-by-step implementation,” she emphasised.
All panellists agreed: Scalable drone businesses are no longer built solely on engineering excellence — they are built on operational foresight.
What’s next: Scaling, consolidation, and the future of drone & UAV investment
As the session closed, panellists reflected on where the drone industry is heading and what startups need to prepare for next. Several of them agreed that regulatory progress on beyond visual line of sight (BVLOS) — particularly FAA Part 108 — will unlock new opportunities, but timelines remain uncertain.
Philip noted that companies are hesitating to invest in BVLOS capability until regulatory clarity improves, especially in the UK and U.S. Gwen added that emergency response operations are often seen as safer ground for regulatory experimentation and could pave the way for more commercial use cases.
Similarly, Alex cautioned that even when frameworks exist, implementation is inconsistent.
“We fly in a constrained environment, but deliveries over a city, that’s still not there,” he explained.
Eric offered a final note of optimism: “The drone economy, as we say, is surging today. Demand is surging, customers are getting more and more experienced and sophisticated. The technology is maturing. So, we’re in a boom. One of these issues is that there’s so many of the companies. No one’s really feeling it yet, but that’s going to change quite a bit over the next two or three years.”
What remains is for the market to consolidate, regulations to stabilise, and for companies to show not just potential but also performance.
Success will come to those who plan for scale, prove their value, and build the business infrastructure to sustain growth. The drone economy is evolving — and those who align their operations with this shift are best positioned to lead it.
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