How Shark Tank Helped Launch a Drone Company
© Xcraft.io
Since its premiere in 2009, Shark Tank has consistently been one of the most popular reality television programs. The premise of the Emmy Award-winning show presents a panel of “Sharks,” investors, with a business proposal from a hopeful entrepreneur. Some of the most successful Shark Tank pitches feature everyday items such as Bombas socks, Scrub Daddy sponges, and Doorbot, better known as the Ring doorbell system.
On October 23, 2015, JD Claridge and Charles Manning appeared on episode 5 of season 7 to pitch the Sharks an idea that they knew would revolutionize the world. In 2005, aerospace engineer Claridge used off-the-shelf hobby store items to build a drone to take real estate photos locally in Idaho. At the time, this was an entirely novel way to use drones. Claridge realized that he had found a niche market and began extrapolating on the idea. Working with Manning, the founder of software analytics company Kochava, the duo founded xCraft in 2013.
With funding raised through a Kickstarter campaign, Claridge developed a custom VTOL (Vertical Take-Off and Landing) drone. As this was still the early stages of what would go on to become one of the fastest-growing industries, xCraft was based on the idea of needing to adjust and move with the times to meet all regulations. It wasn’t until 2016 that the Federal Aviation Administration released the standards for drone regulations that are used today. “We pride ourselves on our ability to quickly adapt to the ever-changing needs of the industry and provide solutions that will make a lasting impact on our world,” Claridge said. “From the initial concept all the way through the final test flight, our team of engineers and programmers work together to create products that lead the way for future drone technology around the world.”
This was something that was clearly evident to all five panel Sharks on the day Claridge and Manning presented their drone company. A bidding war broke out over the XPlusOne, a VTOL drone that could transition to horizontal flight once airborne, sustain speeds of 60 mph, be flown manually or autonomously, and was equipped with a GoPro camera. Claridge and Manning stepped out of the presentation to discuss a course of action, and upon returning presented a landmark proposal for the show. “We would like to propose,” Claridge said to the panel of Sharks, “$1.5 million, each at 5% equity, and bring all the Sharks in.” For the first time, all five Sharks agreed to jointly invest in a featured project.
However, Claridge and Manning ultimately moved on without partnering with any of the Sharks. While the deals made on the show are real, based on the Sharks’ personal financial investments, none of them are ironclad agreements. Based on data collected as of 2023, only 29% of the deals made on Shark Tank become successful. The day after appearing on the show, xCraft’s website gathered so much interest that it crashed for a short time. Today, xCraft calls itself “America’s Drone Company” and is reportedly worth $17 million, nearly double the highest predicted net value they received from the Sharks.
Since appearing on the show, xCraft has undergone many changes, just like the rest of the drone industry. The XPlusOne and the company’s sophomore project, the X2Q, have both been retired. xCraft’s main product is the Panadrone, an all-in-one drone system. The system is a portable docking station that serves as storage, charging, launching, and landing site for a tethered drone that has a maximum altitude of 400 ft. xCraft has six other drone options to meet the needs of nearly any sector of the drone industry. Through a partnership with T-Mobile, xCraft has the means to allow their drone products to achieve whatever needs their customers have.
“We think it’s important that the experts solving complex problems have a personal stake in the solution, and that’s what motivates our team to design the next generation of drone technology in the US,” the company website states. “We’re also adamant that the US becomes the global leader in commercial drone technology, and we promise to do our part to make that a reality by providing sustainable jobs that grow the drone industry in our local communities.” Dedication to this principle is one of the factors that has allowed xCraft to become one of the success stories featured on Shark Tank. xCraft proved that their concept was more than a reality show fad, they found a way to embrace the longevity of the drone industry.
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