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 — Hoverfly Technologies, the leading provider of tethered drone systems for defense and security, today announced 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 leadership in 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 confidence in Hoverfly’s business model and vision for 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), a South Korean engineering and manufacturing company specializing in sensors and advanced technologies for quadrupedal robots and UAVs, invested $5 million in this round. KRM will partner with Hoverfly to establish a new U.S. facility dedicated to 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. Through this investment, KRM becomes Hoverfly’s exclusive manufacturer of key components and a 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, 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 our 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

The investment comes 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, Hoverfly’s technology offers a trusted, domestically sourced alternative to foreign manufacturers and aligns directly with U.S. national security objectives.

Hoverfly’s newest capability, NEXUS (Network Extension of Unmanned Systems), supports the growing need for unmanned ecosystems—an infrastructure highlighted by recent conflicts. Adopted by the U.S. Army in concept and demonstrated with industry partners, NEXUS allows Hoverfly to function for targeting and command-and-control, significantly extending ranges Beyond Visual Line-of-Sight (BVLOS) for ISR, FPV, and loitering systems across land, sea, and air domains.

An Expanding Market

Although the tethered drone sector remains niche, it is expanding rapidly. Industry forecasts project growth from approximately $140 million in 2023 to over $2.6 billion by 2032 at a compound annual growth rate of 38%. Hoverfly has sold more than 800 tethered drones to U.S. and allied defense customers, demonstrating strong market traction for persistent ISR, targeting, and tactical network extension solutions.

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. The company also provides training, spare parts, and global maintenance to its installed base.

SOURCE Hoverfly Technologies Inc.