A new law regarding drones in urban areas is currently being drafted by the Civil Aviation Administration of China. (Photo : Reuters)
Chinese drone manufacturer DJI Technology Co. Ltd. has secured a $75-million investment this week from Accel Partners, a Silicon Valley venture capital firm, sending the Shenzhen-based firm’s value to rise around $8 billion and showcasing Silicon Valley’s increasing interest in unmanned aerial vehicles (UAVs).
A spokesman from Accel, who has previously backed Internet giants Facebook, Etsy, Spotify and Dropbox, said that its investment in DJI is one of its largest to date.
"We think [the drone sector] is still an early market, but one that we think is a new global technology category," Sameer Gandhi, who led the investment for Accel, said on Wednesday, adding that his company has spent a year meeting over 100 drone-focused hardware and software companies before choosing DJI.
"This is the company we believe is going to be the leader in that category," he said.
Both companies declined to comment on how the investment would value DJI, although the Wall Street Journal reported last month that DJI was in talks to raise capital at a valuation of $10 million.
DJI said that further details of the Accel agreement are expected in the coming weeks.
"The investment, one of Accel's largest single investments, is part of a broader effort between the two organizations to help DJI's global expansion efforts," DJI said in a statement.
Founded in 2006, DJI has become the world's top consumer drone maker by revenue, cornering more than 70 percent of the commercial market worldwide. According to people familiar with its finances, the company is expecting $1 billion sales this year, compared to $150 million in 2013.
In 2013, DJI unveiled its best-selling model, the 2.8-pound Phantom, which is easy to fly and captures high-definition footage. The Phantom became a favorite among photographers and filmmakers around the world, who used it to capture impressive aerial footage, although it has also caused controversy in January this year when a user crashed a Phantom FC40 UAV on the White House lawn.
