xCraft builds and designs innovative unmanned aerial systems (UAS) for the commercial and consumer drone industries. The company’s widely recognized drone, the X PlusOne, was pitched on Shark Tank by founders JD Claridge and Charles Manning. In a rare opportunity, they closed deals with all five Sharks. As of 2024, xCraft has a market cap of $34 million.
About the Founder
JD Claridge grew up in Coeur d’Alene, Idaho, with a passion for flying. At age seven, he designed a functional hang glider. His childhood dream led him to attend LeTourneau University, where he studied aerospace and electrical engineering.
Charles Manning, also from Idaho but from Sandpoint, became a serial entrepreneur after earning a degree in international management from Pepperdine University.
He started his career at Oracle as a Senior Product Manager and subsequently held executive positions at M-Code, PLAYXPERT, and Kochava.
Building xCraft
Claridge, who had extensive experience as an aeronautical engineer at various airlines, decided to partner with xCraft to form a commercial drone company in 2014. Claridge invited Manning to join as a partner to handle the business side of things.
JD worked with a team of experts to design a drone that could fly as fast as an airplane, maneuver like a helicopter, and reach altitudes of 10,000 ft. He called it the X Plus One, and it was a groundbreaking product in the drone industry.
It’s no wonder their Kickstarter campaign was a huge success. The entrepreneurs raised over $173,000 in pre-orders through Kickstarter and their website.
Shark Tank Appearance
Despite the success of early marketing efforts, JD and Charles knew it had not yet reached its full potential. They appeared on Shark Tank Season 7 asking for $300,000 for a 20% stake.
After completing the flight and landing of the X PlusOne in front of the Sharks, the founders ceremoniously entered the tank. The Sharks were interested in the prototype PhoneDrone because it had great potential to enter the mass market. A battle broke out between the Sharks.
It got so bad that JD and Charles were asked to leave the room. When they returned, the founders proposed that the Sharks all come together and invest $1.5 million for a 25% stake. When the four Sharks agreed to the deal, Mark Cuban remained silent. Cuban hesitated but eventually agreed to come on board. The $1.5 million deal was one of the ten largest deals on the show.
After Shark Tank
After the show, the deal with the Sharks was not completed, but Charles and JD’s confidence in their technology remained unchanged. They continued to run the business and raise funds through crowdfunding campaigns. In 2018, they ran a StartEngine campaign that raised over $1 million.
Two years later, PhoneDrone Ethos raised $170,000 on Kickstarter. The startup also received funding from Mountain Man Ventures and Meyer Equity. Sadly, they had to abandon PhoneDrone, and the comments on the campaign are filled with angry customers demanding refunds.
Currently, they have 8 products in their store, which they sell mainly to corporate clients, government agencies, and the military. The drone market is growing rapidly due to the increasing demand for efficient transportation. The commercial drone market is expected to reach $35.6 billion by 2026.
According to SEC filings, xCraft had annual revenue of $199,122 in 2021 and a net loss of $392,496. In 2020, they had a net loss of $1,064,118. The company raised $2.2 million at a $34 million valuation in its last funding round on StartEngine in December 2021. Despite the impressive valuation, xCraft is still struggling to become profitable.
Categories: Shark Tank
Source: svlsf.edu.vn