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04/29/2024 08:18:55 pm

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Drone Company DJI Preparing Funding Round with $10 Billion Valuation

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(Photo : DJI) DJI is planning a major funding round to keep the company going.

Chinese drone firm DJI is looking for venture capital investors for a new funding round that could value the company at $10 billion. The valuation would put DJI at the same level as some of the elite Silicon Valley startups like Snapchat and Tinder.

DJIs drones come at a hefty price of around $1,000 to $3,000 and are fitted with some professional level equipment to interest more than the casual drone fan. Several professional media organizations and government contractors have Phantom and Inspire drones.

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This view on drones has pushed DJI to the top of the food chai. DJI currently holds the most market share for drones. DJI CEO Frank Wang said "we are proud to say that we have been leading the industry since we started -- even now," in a Wall Street Journal interview last year.

Even though drones are still under some scrutiny from governments, it looks like the adoption rate is spiking as more customers and businesses become interested. The advantage of drones for security purposes is also becoming more apparent and has led to a rise in security applications for DJIs Phantom and Inspire.

The film industry may soon be relying on drones for more impressive action shots, allowing directors to create massive scenes without having to add too much CGI into the shot.

DJI wants to be part of this mainstream adoption by putting itself front and center. It already offers easy to use platforms for the drones, alongside investments into new technologies like 4K recording and 4G LTE/WiFi ac connection.

It might struggle to compete in the commercial end of the drone market since companies like Amazon, Facebook and Google are investing heavily into commercial drones capable of delivering packages, sending letters and offering enterprise security.

The investment might help DJI work on these tools with Accel Partners and Kleiner Perkins Caufield and Byers both looking into the valuation. It doesn't look like any technology company wants to grab a slice of DJI in the first major funding round.

With companies like Alibaba and Xiaomi both showing the power of the Chinese tech industry, DJI is yet another company beating U.S. and European counterparts with better design and performance on its own drones.

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