Investors are opening their checkbooks to China-based drone makers, after Dajiang Innovation Technology Co. (DJI) became the country’s first company to pioneer a major new consumer product category.
Yuneec International, a Shanghai-based drone and aerospace company founded in 1999 that makes drones and electric-powered airplanes, has secured a more than $60 million investment from Intel INTC +0.00%’s venture capital arm. Intel has also invested in drone companies Airware and PrecisionHawk as it seeks to sidestep the declining PC market by betting on the possible commercial use of drones.
Intel and Yuneec will jointly develop products, Intel Chief Executive Brian Krzanich said in a video announcement. The two companies have got “drones on our road map that are going to truly change the world and revolutionize the drone industry,” he said.
Earlier this week, Yuneec’s younger peer Ehang raised $42 million in its series B round led by GP Capital, an investment fund managed by Shanghai International Group. GGV Capital, Zhenfund and a number of investors also participated in the fundraising.
Founded in 2014, Ehang develops consumer drones that can be controlled by its smartphone app. It plans to launch more products later this year.
Shenzhen-based DJI, best known for its Phantom series that sell for about $1,200, is leader of the pack. It accounts for more than 70% of the consumer drone market, according to Frost & Sullivan. The company in May got $75 million from Silicon Valley venture capital firm Accel Partners at a valuation of $8 billion. DJI and Accel in the same month launched an investment fund to back drone-technology start-ups.