Hoverfly Technologies Secures $20 Million Series B Investment to Accelerate Growth and Strengthen U.S. Drone Capabilities

Rhea-AI Summary

Hoverfly Technologies (DRS) closed a $20 million Series B on October 8, 2025, led by existing investor Leonardo DRS with $15 million and new investor Korea Robot Manufacturing (KRM) with $5 million. The round is the company's largest to date and includes a manufacturing agreement with DRS to expand production of the Hoverfly Sentry and a new line for the Hoverfly Spectre.

KRM will be exclusive manufacturer of key components, establish a U.S. production facility, and serve as a reseller alongside DRS. Hoverfly has sold over 800 tethered drones and promotes its NEXUS BVLOS networking capability adopted in concept by the U.S. Army.

Positive

• $20M Series B — largest capital raise in company history
• Leonardo DRS invested $15M and signed a manufacturing agreement
• KRM invested $5M and will establish U.S. component production
• KRM and DRS named official resellers and integrators
• Hoverfly sold > 800 tethered drones to U.S. and allied customers
• NEXUS capability demonstrated and adopted in concept by U.S. Army

Negative

• Tethered drone sector currently small at about $140M in 2023
• Market remains niche despite forecast growth to $2.6B by 2032

Insights

Defense-industrial analyst

Hoverfly closed a $20 million Series B led by Leonardo DRS to scale U.S. production and supply chains.

Leonardo DRS contributed $15 million and signed a manufacturing agreement to expand production of the Hoverfly Sentry and launch a new line for the Hoverfly Spectre. KRM invested $5 million, will build a U.S. facility for key components, and secured an external supplier to avoid traditional high-risk regions. The round makes DRS and KRM official resellers and integrators of Hoverfly systems.

Key dependencies and risks include successful ramp of the new production lines, timely transfer of component manufacturing to KRM, and fulfillment of reseller/integrator responsibilities by DRS and KRM. The announcement cites alignment with U.S. defense priorities and notes Hoverfly has sold over 800 tethered drones and lists its product NEXUS as adopted in concept by the U.S. Army; those facts underpin demand claims but require delivery evidence.

Watch for milestones such as initial output from the DRS and KRM production lines, component supply chain confirmations, and any concrete delivery or contract notices in the next 12–24 months. Also monitor announcements tied to domestic sourcing and the stated market growth trajectory to $2.6 billion by 2032 at a 38% CAGR.

The investment comes from existing production partner and leading defense technology company Leonardo DRS and new investor Korea Robot Manufacturing (KRM)

SANFORD, Fla., Oct. 8, 2025 /PRNewswire/ -- Hoverfly Technologies, the leading provider of tethered drone systems for defense and security, is proud to announce the successful close of its $20 million Series B funding round, led by existing investor Leonardo DRS (DRS) and new partner Korea Robot Manufacturing (KRM).

The investment is the single largest capital raise in company history and will support Hoverfly's continued dominance of the tethered drone sector, which is at the forefront of U.S. and allied defense initiatives.

Learn more about Hoverfly Technologies at hoverflytech.com.

KEY HIGHLIGHTS

Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, invested $15 million in this round, reaffirming its confidence in Hoverfly's business model and vision for sustained growth. As part of the investment, Hoverfly signed a manufacturing agreement with DRS to expand production of the Hoverfly Sentry and to launch a new production line for the Hoverfly Spectre system.

"Our continued investment in Hoverfly Technologies reflects our unwavering confidence in their innovative tethered drone solutions," said Aaron Hankins, Senior Vice President and General Manager of the Leonardo DRS Land Systems Business Unit, and a member of the Hoverfly Board of Directors. "This partnership enables us to bolster U.S. defense capabilities through expanded domestic production and aligns with our shared commitment to strengthening national security."

Korea Robot Manufacturing Co., Ltd. (KRM) is a South Korean engineering and manufacturing company specializing in sensors and advanced technologies for quadrupedal robots and UAVs. KRM invested $5 million in this round. As part of its U.S. expansion, KRM will partner with Hoverfly to establish a new facility dedicated to the domestic production of key components—strengthening support for the U.S. defense sector and enhancing supply chain resilience.

To ensure long-term stability in sourcing critical materials, KRM has secured a reliable supply of high-performance components through a strategic partnership with a supplier outside traditional high-risk regions. This move ensures Hoverfly access to a stable, U.S.-based supply of essential inputs. Through this investment, KRM becomes Hoverfly's exclusive manufacturer of key components and preferred vendor for future component needs.

"Partnering with Hoverfly enables us to establish a U.S.-based supply chain for critical UAV components—a strategic move aligned with national security priorities, especially amid restrictions on imports from traditional high-risk regions," said Kwangsik Park, CEO of KRM.

Both DRS and KRM will now serve as official resellers and integrators of Hoverfly's Sentry and Spectre systems, further expanding Hoverfly's global reach and production capacity.

"This funding round marks a defining moment for our company," said Steve Walters, CEO of Hoverfly Technologies. "With the backing of world-class international partners like DRS and KRM, we are poised to rapidly scale operations, expand product offering, and capture new markets, to further establish our market leadership and continue delivering systems that advance and unleash U.S. drone dominance."

ALIGNING WITH U.S PRIORITIES

Hoverfly's investment comes at a pivotal time as the U.S. Department of Defense prioritizes the development of secure, American-made unmanned systems. As the only tethered drone on the DIU Blue List, the company's technology offers a trusted, domestically sourced alternative to foreign drone manufacturers, aligning directly with U.S. national security objectives.

By partnering with KRM, Hoverfly is taking its first strategic steps into custom and broadly adopted, expendable drone key components. The goal is straightforward: leverage KRM's leading engineering and reliability to supply U.S. end-users with cost-effective, high-performance technology.

Hoverfly's newest capability NEXUS (Network Extension of Unmanned Systems) also supports the rapidly growing need for unmanned ecosystems—a critical infrastructure that emerged from the war in Ukraine. Adopted by the U.S. Army in concept and demonstrated alongside industry partners, NEXUS allows Hoverfly to function as both targeting and command-and-control system, significantly extending ranges Beyond Visual Line-of-Sight (BVLOS) for Intelligence, Surveillance, and Reconaissance (ISR), First-Person View (FPV), and loitering drone munitions across land, sea, and air domains. This innovative capability positions Hoverfly as a combat multiplier ready to lead the next wave of U.S. drone defense evolution.

AN EXPANDING MARKET

Though the tethered drone sector remains niche, it continues to expand rapidly with industry forecasts projecting growth from approximately $140 million in 2023 to over $2.6 billion by 2032 at a combined annual growth rate of 38%. Hoverfly has already sold over 800 tethered drones to U.S. and allied defense customers, demonstrating strong market traction and underscoring that our technology addresses mission-critical needs for persistent ISR, targeting, and tactical network extension.

ABOUT HOVERFLY TECHNOLOGIES

Hoverfly Technologies (Sanford, Florida) is a U.S. based innovator and supplier of tethered drone systems tailored for defense and security applications. Its flagship platforms, Sentry and Spectre, enable extended duration, persistent aerial surveillance, and network extension. Founded to serve mission-critical needs, Hoverfly delivers trusted, American-made systems with expanding production and industry partnerships. Hoverfly also provides training, spare parts, and global maintenance worldwide to its large installed base.

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SOURCE Hoverfly Technologies Inc.

FAQ

What did Hoverfly announce in the October 8, 2025 Series B financing?

Hoverfly closed a $20M Series B led by Leonardo DRS ($15M) with KRM investing $5M, plus manufacturing and reseller agreements.

How does the Leonardo DRS (Nasdaq: DRS) investment affect Hoverfly production?

DRS committed $15M and signed a manufacturing agreement to expand Sentry production and launch a Spectre production line in the U.S.

What role will KRM play after its $5M investment in Hoverfly?

KRM will be exclusive manufacturer of key components, establish a U.S. facility, secure a stable supplier outside high-risk regions, and act as a reseller.

How many Hoverfly tethered drones have been sold to date?

Hoverfly has sold over 800 tethered drones to U.S. and allied defense customers.

What is Hoverfly's NEXUS capability and its significance for DRS investors?

NEXUS extends BVLOS networking for ISR and targeting; it was demonstrated and adopted in concept by the U.S. Army, positioning Hoverfly as a systems integrator for unmanned ecosystems.

What does the Series B mean for U.S. drone supply chain resilience?

The round funds expanded domestic production and KRM's U.S. component facility, aiming to reduce reliance on traditional high-risk regions for critical inputs.