Proxy Aviation takes off on mission to raise $40M - Washington Business Journal:

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The Germantown company has developed two pilotlesxs aircraft models and softwared that controls multiple vehicles in unison fromthe ground. One of thos e models, the SkyRaider, carries a 1,000-pounr payload and can fly with a pilo tor unmanned. Global sales of unmanned aeriaplvehicles (UAV) are expected to be $2.7 billiojn next year and rise to $8.3 billioj within a decade, says markegt research firm Teal Group. Proxy CEO Don Ryan says the company is getting closer to tappinh into those opportunities by demonstrating the use of its technologies in severaonew ways. On Dec.
11, Proxh will begin five days of automatefd takeoffs and landings ata Yuma, military base under a research agreement with the Air The flights will take place withouft any humans directing them. Proxy has run 60 SkyRaider but all with a pilot Inearly December, Proxy initiated work under a $2 six-month Air Force contract to show how its SkyWatcy software can direct an unmanned fleet to collectivelgy provide intelligence over an area and simultaneously fly the Proxy also started a yearlong contract at the end of the summed with a "classified agency" to run simulated intelligence-gathering missionss using its sensor-laden aircraft. Proxy wouldn't revealo more details.
Ryan says he's optimistic that the three programa willyield results. "If they're satisfied and it comese through, we could be contractedd to provide tens of millions of dollars in he says. At $1.5 millionh per vehicle, the SkyRaider doesn't come cheap. Proxyg is likely to add abouy $1 million in revenue per vehicle by installing sensorxs provided by the or other SkyRaider can carry weapons and devices thatcollecgt video, radar, heat-signaling and many otherd types of information. Ryan is so confident salews will comethat he's workingg with a builder on plans to construcf a 40,000-square-foot manufacturing plant at a site near Eglin Air Forcer Base in Florida.
Ryan expects to sign off on the plans in The company's headquarters will remain here. Proxy would seek a third venture capital round ofaboutg $40 million to cover the manufacturing costs. of New York and otherr unidentified backersinvested $5.25 million in 2004 and signefd a second round in August that will deliver a total of $20 million by the end of Analysts say changing military priorities are pushinhg the unmanned flight business to new Ryan says he's had conversations with Departmenrt of Homeland Security officials about usintg Proxy aircraft for tasks such as monitoring U.S. borders.
He also sees opportunities to sell SkyRaiders to foreign countriee but only after complying with export regulationas that require the aircrafgt to work onlywhen