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Controversial drone company Xtend leans into defense with new $40M round | TechCrunch


Close to a decade ago, brothers Aviv and Matteo Shapira co-founded Replay, a company that created a video format for 360-degree replays — the sorts of replays that have become part and parcel of major sports broadcasts.

Replay caught the attention of Intel, which acquired the company in 2016 for a reported $175 million, and led Aviv and Matteo to a chance meeting with Rubi Liani, the founder of Israeli’s official drone racing league (FRIL).

Liani turned the brothers on to drone racing and planted the seed of the idea for their next startup, Xtend, which he helped found.

“As founders, we saw an opportunity to bridge the gap between our experiences,” Aviv told TechCrunch. “We recognized the exceptional skills required to control advanced robots, particularly drones. Our vision was to develop technology that would make controlling these robots intuitive and accessible, like how users interact with smartphones without needing in-depth technical knowledge.”

Xtend provides a platform that lets operators manage drones and robots developed both in-house by Xtend and third-party vendors. With Xtend’s platform, operators can directly control drones and robots — optionally with a VR headset — or train AI models to be deployed on drones that identify objects and help navigate indoor/outdoor environments. Today, the company announced a $40 million funding round led by Chartered Group at a post-money valuation around $110 million.

“Our platform empowers drones and robots to handle specific tasks autonomously, like entering buildings and scanning floors,” Aviv said. “Crucially, it allows the ‘common sense’ decisions — like judging situations or adapting to unforeseen circumstances — to remain in the hands of human supervisors.”

Xtend allows operators to orchestrate teams of drones and robots — not just individual machines — and have them perform certain tasks autonomously, like moving from waypoint to waypoint. All the while, Xtend analyzes data from past deployments to recommend actions that an operator might take.

Xtend’s Wolverine drone.

“Xos empowers a single supervisor to oversee a team of robots performing tasks at various locations simultaneously,” Aviv said. “We believe complete autonomy isn’t the ultimate goal, but rather a subset of capabilities.”

Xtend pitches its technology as general-purpose, aimed at customers in industries ranging from public safety to logistics. But the company leans heavily into military, defense and law enforcement applications.

Xtend has contracts with the Israel Defense Forces (IDF) and the U.S. Department of Defense to “develop and deliver its systems,” including drone interceptor systems, for “operational evaluation” — including a $9 million deal with the Pentagon’s irregular warfare office. And Aviv isn’t shy about the company’s ambitions to move into what he calls “new civil market opportunities,” like private and public security.

“Imagine a police officer coordinating drones to search a large area for a suspect,” Aviv said. “Xos can empower these professionals to leverage robotic assistance.”

This could be problematic, given that regulations are still largely lacking for law enforcement usage, and drones have been used to surveil legal demonstrations. For instance, in 2020, Congressional Democrats raised the alarm that drones and spy planes had been used by the administration of then-President Donald Trump to watch demonstrations in Las Vegas, Minneapolis and Washington, D.C., according to Al Jazeera.

In addition, Xtend has recently found itself in the crosshairs of international monitors.

Statewatch and Informationsstelle Militarisierung (IMI) found in an analysis that Xtend, among other Israeli military companies and institutions involved in drone deployment, received an R&D grant from the EU’s Horizon Europe fund despite a prohibition on EU funding for military and defense projects.

Aviv has taken a strongly pro-Israel stance in the country’s ongoing war with Hamas, telling Ctech that Xtend has “redirected energies to supporting the IDF 100%.” On its website, which features testimonials from Israeli troops in Gaza, Xtend says that it enables “soldiers to perform accurate manoeuvres in complex combat scenarios.”

In an interview with The Wall Street Journal, Aviv said that Xtend has been working with the IDF for some time — initially to take down incendiary balloons originating from the Gaza Strip. Since then, its drones have been used to map and scout out subterranean tunnels dug by Hamas in Gaza — and, far more alarmingly, sent on reconnaissance missions equipped with explosive payloads like grenades.

Controversial as it may be, the strategy appears to be working for Xtend’s business. The company says it’s won $50 million in contracts to date across its customer base of “over 50” organizations, including government defense agencies.

“We’re unlocking the true potential of robotics in complex scenarios, including first response, search and rescue and critical infrastructure inspection,” Aviv said. “Hundreds of Xtend’s drone and robotics systems are already operationally deployed worldwide, and we are continuously developing Xos and those platforms to deliver the future of human-machine teaming.”

With the new funding, which brings Xtend’s total raised to $65 million, Xtend plans to grow its 110-person workforce by 50% across the U.S., Israel and Singapore by the end of the year as it shifts to a combination of platform-as-a-service and software-as-a-service sales models. On the roadmap is international expansion, with a specific focus on Japan.


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Robotic Automations

Danti's natural language search engine for Earth data soars with $5M in new funding | TechCrunch


Danti, an artificial intelligence company building a superpower search engine for Earth data, has brought on prominent defensive tech investor Shield Capital as it looks to scale its technology for government customers.

Founded by Jesse Kallman in early 2023, Danti has developed a natural language search engine for data that has historically been highly siloed, like satellite imagery, collating it with other commercial and government sources to report back across multiple sources and domains.

For example, an analyst can pose a complex question in simple language, like “What are the latest tank movements in Eastern Ukraine?” and receive in turn straightforward answers collated across data sources.

The idea is to empower a single analyst to do more, Kallman said in a recent interview. While American adversaries are throwing manpower at the problem of analyzing huge amounts of data, Danti aims to help “one analyst do the work of 10 or 15,” he said. It means that a relatively straightforward question — where is a particular ship off the coast of Lagos, Nigeria, for example — can potentially be answered in seconds, rather than hours.

“We’re not replacing the analysts,” Kallman clarified. “We’re helping them do their work way faster, so that they can get to the part that humans are way better at, which is synthesizing and deciding, ‘What do I now do about this information? How do I want to report on it?’ “

Among the startup’s early customers is the U.S. Space Force, which is using Danti’s product to help officers easily search and share data. The use of natural language models in the search engine means an intuitive, straightforward user experience; no doubt this is paramount in high pressure situations where analysts must make complex decisions, but have little time to trawl through reams of satellite or drone data.

Right now, Danti is squarely focused on government, though in the longer term it plans to roll out a version of its product for commercial industry. This version would focus on property records, parcel information, and risk data, to serve markets like electric utilities and insurance, Kallman said. Customers will also be able to connect their own information into Danti’s engine to use its natural language processing to query their own data.

The $5 million round was led by Shield Capital and includes participation from the startup’s existing investors Tech Square Ventures, Humba Ventures and Leo Polovets, Space.VC, and Radius Capital. Kallman said the startup looked deliberately for a defense-focused fund to lead their next round, particularly as the company looks to execute its government go-to-market plan and scale its engineering team.

Since last summer, when the company announced its $2.75 million pre-seed, the team has grown to over twenty people, and Kallman said the engineering team will grow even more with the new injection of funds.


Software Development in Sri Lanka

Robotic Automations

London's first defense tech hackathon brings Ukraine war closer to the city's startups | TechCrunch


Last week, the UK announced its largest ever military support package for Ukraine. The bill takes the U.K.’s total support for this financial year to £3 billion — not quite the $50 billion the US pledged recently, but still substantial.

But while most of those funds will be spent on very traditional military hardware, a new tech initiative launched last weekend was aimed at enhancing Ukraine’s asymmetric warfare capabilities against Russia. In fact, the London Defense Tech Hackathon was the first-ever event to bring together some of the UK’s brightest minds in technology, venture capital, and national security in a military setting. The idea was to hack together ideas to both assist Ukraine and also to create a far more porous layer between the worlds of fast-paced civilian tech and the very different world of the military. 

Put together by Alex Fitzgerald of Skyral and Richard Pass of Future Forces, the two were joined by co-organizers that included the Honourable Artillery Company,  Apollo Defense, Lambda Automata and D3 VC among others.

The event brought together developers skilled in both hardware and software to foster innovation in defense, national security, and deeptech. There was a key focus on drones and their applications on the battlefield, both the hardware and the electronic systems needed to fly them to their targets and counter-drone systems. 

As most observers of the war have pointed out, this war has taken on a completely new dimension compared to previous wars. Today, drones and electronic countermeasures are the order of the day, as Ukraine has endeavored to fight off Russia, a much larger aggressor, with asymmetric methods. 

Fitzgerald told me: “There are three groups of people coming to these events. There’s the builders, investors, and the military. I think for everyone, it’s trying to convince their colleagues to think more about defense technology as an option to either build or invest in.”

He explained that there were two main tracks of work: electronic warfare and drone or aerial systems: “There’s an acronym I learned from someone cleverer than me, which is that the future of defense technologies comes small, cheap  and uncrewed.”

He explained that one main aim was to get people who had traditionally not been involved in defense either building for or investing in defense: “We’ve got people like the NATO Innovation Fund, the UK National Security Strategic Investment Fund. So yeah, it’s a mix of people who already invest in defense or who haven’t thought about investing before.”

He chose the hackathon format because “the focus is on getting stuff done. Get actual builders, not to just talk about building, because that’s actually where most of the innovation is happening.”

One of the inspirations for the event was the recent El Segundo, Calif., defense tech hackathon in February of this year.

“I think the key thing with military technology is making it as easy to use and as powerful as some of the the consumer technology that’s been built,” said Fitzgerald “There’s the classic line, ‘There’s more AI in a snap in Snapchat than there is often some most modern military systems.’” 

Also attending the event was Catarina Buchatskiy, representing Apollo DefenseAs engineers pored over cameras, Starlinks, and drones, she told me: “Defense tech is a difficult industry to enter. And it’s a difficult market to break into, for obvious reasons. We’ve found Hackathons an extremely exciting way for people to get involved because defense technology can seem like a giant black box of contracts that take 10 years, and technologies that are built [are often] hidden from the public eye. At a hackathon, you have 24 hours. Make something really cool.”

 

Interceptor done

She said the firm had seen “a lot of success” with the El Segundo event.  

“We just realized that if people think it’s something that’s accessible to them [and] can do something quickly and make an impact, they want to participate,” she told me.

Buchatskiy, who is Ukrainian, also spoke powerfully about Ukraine: “These are very real things to me. When I say that I need a drone detector, it’s because I’m looking at one outside my window that we didn’t detect in time and it is going to kill my neighbor. That is the reality that we face.”

She added that it’s important for hackathon attendees to know “that they’re building for someone and this could actually save my family’s life.”

Despite the controversy surrounding defense technology in some quarters, she added, “To be involved in technology is to be interested in a better future. And I really, truly can’t think of a more interesting and better future than one that’s safe and one where we can guarantee peace.”

NATO, in the shape of the NATO Investment Fund, a fund with a billion euros to invest in defense tech over the next few years, was also represented. 

Fund partner Patrick Schneider-Sikorsky told me the fund was set up to back startups “that bolster our collective defense security and resilience. We invest in dual-use deep tech, but the fund was conceived before the war in Ukraine. The conflict has now very much impacted our investment thesis and we’re keen to invest in defense technologies that can make Europe safer and more secure.”

But why was NATO funding a hackathon?

“I think defense tech is new to a lot of a lot of founders and a lot of developers,” Schneider-Sikorsky said. “It’s not that easy for them to understand the problem statements and the challenges and also to get access to the end users.”

He said the hackathon format particularly lends itself to that: “It would normally, for many founders, take them months if not years to get in touch with the right people at defense ministries, and a lot of them are here today. So hopefully it will accelerate things substantially.”

Another attending investor, Alex Flamant from HCVC, told me: “There was a need for people in Europe to invest in proper defense technologies. It seemed from the investor standpoint, there’s restrictions around certain investors investing. One of the goals of this is to demystify what a lot of this is amongst young builders, and really to get people more aligned with the big mission that we’re all on.”

Machine learning specialist was there to focus on drone detection: “That’s in our machine vision and object detection knowledge. Ukraine are fighting for the whole of Europe at the moment and obviously the UK is pivotal to that. It’s essential that we that we ally with them and utilize what we have to help.”

The hackthon came at a time of increased tension around the use of technologies in defense. 

Google recently fired 28 employees after their sit-in protest over the controversial Project Nimbus contract with Israel, for instance.

However, defense is clearly rising up the tech agenda.

Anduril recently moved ahead in a Pentagon program to develop unmanned fighter jets, and more broadly as we learned last year, venture capital is opening the gates for defense tech. 

And in the UK, there is much talk about how high-powered lasers could be among the next wave of weapons. The DragonFire weapon is said to be precise enough to hit a £1 coin from a kilometre away, according to the MoD, and cost barely $15 to fire. 

The projects to emerge from the hackathon may not have been not quite so sci-fi, but they were pretty damn close. How about a “High Speed Interceptor to take down Orlan Drones”? And at least they are likely to be deployed a lot sooner than a laser gun. 

 




Software Development in Sri Lanka

Robotic Automations

Defense startup True Anomaly lays off around 25%, cancels summer internship | TechCrunch


Space and defense startup True Anomaly has laid off around 25% of its workforce and cancelled its summer internship program, TechCrunch has learned.

“With our rapid growth over the past two years, we looked at every aspect of our company to make sure we are laser focused on our goals and best positioned to execute,” a company spokesperson said. “We identified the duplication of roles and functions across the company, and as such, reduced our headcount. This won’t impact our ability to execute on our contracts with customers or on our mission to bring security and sustainability to the space domain.”

While TechCrunch could not confirm the total headcount prior to these layoffs, True Anomaly had over 100 employees as of December 2023, it told the Denver Business Journal. Nearly 30 people were cut from the workforce, according to a post on LinkedIn from one of the people let go.

Employees started posting on LinkedIn about the layoffs on April 24; according to those messages, people impacted worked in sales, business development and recruiting. At least some interns were abruptly told the summer internship program was cancelled last Friday, on April 19, as well. The internship was set to start on June 1.

The Centennial, Colorado-based startup closed a $100 million financing round last December; at the time, executives said staff had swelled to 107 employees. Earlier this month, True Anomaly CEO Even Rogers told TechCrunch during an interview on the company’s first mission that the company was “well-capitalized.”

True Anomaly hopes to modernize space defense with its Jackal spacecraft and Mosaic software platform for command and control operations. The startup envisions using Jackals on orbit to approach, image, and gather intelligence on other objects in orbit.

True Anomaly launched that first mission, called Mission X, on March 4, though it ended early after the company failed to establish reliable communications with the two spacecraft that were deployed in orbit. The anomaly is hardly slowing them down, however. The startup is pushing to launch at least twice more in the next 12 months, aiming for another launch in October, one person told TechCrunch.

The person was offered an internship, and spoke to TechCrunch on condition of anonymity, saying that a technical recruiter suggested that the internship program had been cancelled because the company didn’t have the human bandwidth to organize and supervise an intern project. The team is also starting work on the $30 million responsive space contract that the company was awarded earlier this month, the person said.


Software Development in Sri Lanka

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