Key Takeaways
- • CyPhy Works, led by iRobot cofounder Helen Greiner, closed a $22 million Series B funding round led by Bessemer Venture Partners, bringing total funding to over $30 million since inception.
- • The funding round includes strategic investors UPS Strategic Enterprise Fund and Motorola Solutions Venture Capital, signaling corporate validation for the drone technology across logistics, public safety, construction, agriculture, and defense applications.
- • CyPhy has previously raised $7 million from Lux Capital (November 2013) and secured nearly $900,000 through a Kickstarter campaign (June 2015) for its six-rotor LVL 1 drone, demonstrating dual pathways to capital (institutional and consumer crowdfunding).
- • The investment underscores accelerating venture capital interest in unmanned aerial vehicle (UAV) hardware startups in the U.S. and China, though CyPhy's corporate partnerships do not necessarily indicate immediate plans for consumer drone delivery services.
- • Company plans to scale manufacturing and commercialize its Persistent Aerial Reconnaissance and Communications (PARC) vehicle system across multiple enterprise sectors.
Summary
CyPhy Works, a Danvers, Massachusetts-based drone manufacturer founded by iRobot cofounder Helen Greiner, has secured $22 million in Series B funding led by Bessemer Venture Partners. The round, announced on October 14, 2015, brings the company's total raised capital to more than $30 million and marks a significant expansion in venture funding for commercial unmanned aerial vehicle (UAV) developers competing for market share in enterprise and industrial applications.
The funding syndicate reflects institutional confidence in CyPhy's platform and strategic market positioning. Beyond Bessemer Venture Partners, the round includes UPS Strategic Enterprise Fund—the shipping company's corporate venture arm—and Motorola Solutions Venture Capital. These strategic co-investors signal validation across logistics, communications, and enterprise mobility sectors, though the inclusion of UPS does not necessarily indicate imminent deployment of drone delivery systems. Rather, the partnership suggests CyPhy is leveraging corporate relationships to accelerate technology adoption and market penetration.
CyPhy's capital trajectory demonstrates diversified funding channels. The company previously raised $7 million from Lux Capital in November 2013 and completed a Kickstarter crowdfunding campaign in June 2015 that generated nearly $900,000 for its six-rotor LVL 1 drone. This combination of institutional venture backing and consumer crowdfunding reflects both B2B enterprise potential and direct-to-consumer viability. The company's PARC (Persistent Aerial Reconnaissance and Communications) vehicle system is positioned for deployment across public safety, construction, agriculture, journalism, mining, and defense applications—markets increasingly receptive to autonomous platforms.
The funding round arrives amid accelerating venture activity in drone hardware startups across both the U.S. and China, indicating investor conviction that UAV technology will penetrate multiple commercial verticals beyond the consumer delivery narrative popularized by Amazon. CyPhy's strategic investor roster—combining logistics, communications, and venture capital expertise—positions the company to scale manufacturing and pursue enterprise commercialization across fragmented markets with distinct regulatory, operational, and technical requirements.
The funding syndicate reflects institutional confidence in CyPhy's platform and strategic market positioning. Beyond Bessemer Venture Partners, the round includes UPS Strategic Enterprise Fund—the shipping company's corporate venture arm—and Motorola Solutions Venture Capital. These strategic co-investors signal validation across logistics, communications, and enterprise mobility sectors, though the inclusion of UPS does not necessarily indicate imminent deployment of drone delivery systems. Rather, the partnership suggests CyPhy is leveraging corporate relationships to accelerate technology adoption and market penetration.
CyPhy's capital trajectory demonstrates diversified funding channels. The company previously raised $7 million from Lux Capital in November 2013 and completed a Kickstarter crowdfunding campaign in June 2015 that generated nearly $900,000 for its six-rotor LVL 1 drone. This combination of institutional venture backing and consumer crowdfunding reflects both B2B enterprise potential and direct-to-consumer viability. The company's PARC (Persistent Aerial Reconnaissance and Communications) vehicle system is positioned for deployment across public safety, construction, agriculture, journalism, mining, and defense applications—markets increasingly receptive to autonomous platforms.
The funding round arrives amid accelerating venture activity in drone hardware startups across both the U.S. and China, indicating investor conviction that UAV technology will penetrate multiple commercial verticals beyond the consumer delivery narrative popularized by Amazon. CyPhy's strategic investor roster—combining logistics, communications, and venture capital expertise—positions the company to scale manufacturing and pursue enterprise commercialization across fragmented markets with distinct regulatory, operational, and technical requirements.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.