PDW Raises Over $110M Series B to Boost U.S. Drone Production

Performance Drone Works emerged from the high-octane world of the Drone Racing League, but the Huntsville, Alabama company is now chasing something far bigger than gate times. PDW Holdings, Inc. closed its Series B financing, led by Ondas and including participation from Hood River, Cedar Pine, Hanwha Asset Management's venture fund, and Booz Allen Hamilton, bringing the total amount funded to over $110 million.

The net proceeds will be used to fund future growth initiatives and ramp production of PDW's multi-mission drones, among other strategic programs. For a company that started with racing engineers and drone pilots, the pivot to defense-scale manufacturing is the clearest signal yet that the commercial drone world's most technically fluent operators are now setting the pace in military UAS.

CEO James Slider framed the raise in terms of national urgency. "Mission-ready small UAS technology is a national security imperative. Our adversaries have proven what's possible when drone technology is engineered, manufactured and deployed at scale. The United States cannot afford to fall behind or rely on foreign supply chains. We are investing in expanded production capacity and a U.S.-anchored supply chain to ensure resilient, domestically built systems delivered at the highest level," Slider said.

The supply-chain argument carries real weight given PDW's existing manufacturing footprint. PDW's Drone Factory 01, a 90,000 sq. ft. manufacturing facility in Huntsville, Alabama, has capacity to produce up to 100,000 NDAA-compliant advanced drone systems, valued at approximately $1 billion, per year. The Series B financing is designed to push that capacity further.

The company's portfolio spans the C100 quadcopter, the Attritable Munition strike drone, a SIM flight simulator, CORE mission planning software, Multi-Mission Payloads, a Range Extension Kit, and an anti-jam radio, giving PDW one of the more complete integrated stacks among small UAS manufacturers competing for DoD contracts. PDW's most recent contract prior to this raise was a $20.9 million award from the U.S. Army to supply its C100 UAS and Multi-Mission Payloads in support of the Army's "Transformation in Contact" initiative.

The investor lineup reinforces just how seriously the defense establishment is treating this round. Booz Allen Hamilton, a firm synonymous with government intelligence and systems integration work, joined alongside Hanwha Asset Management's venture fund, the investment arm of the South Korean defense and industrial conglomerate. Lead investor Ondas was direct about its rationale. Eric Brock, Ondas CEO and Chairman, said "PDW isn't just building better drones, but a domestic production base to meet our nation's growing demand," adding that PDW's "proven technology in real-world environments, growing manufacturing capabilities, and unwavering commitment to mission performance are raising the bar for industry expectations."

Houlihan Lokey served as exclusive financial advisor to PDW on the transaction.

PDW, headquartered in Huntsville, designs, engineers, and mass manufactures AI-equipped small unmanned aerial systems and mission software for defense, government, and law enforcement customers. The company's roots in the Drone Racing League, where milliseconds and mechanical precision define winners, turned out to be exactly the engineering culture the battlefield demands at scale.