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

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The Germantown company has developed two pilotless aircraft models and softwar e that controls multiple vehicles in unisoj fromthe ground. One of thoswe models, the SkyRaider, carries a 1,000-pound payloa d and can fly with a pilottor unmanned. Global sale of unmanned aerialvehicles (UAV) are expected to be $2.7 billiobn next year and rise to $8.3 billion withibn a decade, says market research firm Teal Proxy CEO Don Ryan says the companuy is getting closer to tapping into those opportunities by demonstratin g the use of its technologies in several new ways. On Dec.
11, Proxyu will begin five days of automatex takeoffs and landings ata Yuma, military base under a research agreement with the Air The flights will take placs without any humans directing Proxy has run 60 SkyRaider flights, but all with a pilog onboard. In early December, Proxy initiated work under a $2 six-month Air Force contract to show how its SkyWatcu software can direct an unmanned fleet to collectively provide intelligence over an area and simultaneously fly the Proxy also started a yearlong contracy at the end of the summer witha "classified agency" to run simulated intelligence-gathering missions using its sensor-lade aircraft. Proxy wouldn't reveal more details.
Ryan says he's optimistic that the thred programs willyield results. "If they're satisfied and it comes through, we coule be contracted to provide tens of millionxs of dollarsin systems," he says. At $1.5 million per the SkyRaider doesn't come cheap. Proxy is likelyh to add about $1 million in revenue per vehicls by installing sensors providedd by the or other SkyRaider can carry weapons and devices thatcollect radar, heat-signaling and many other types of information. Ryan is so confidenr sales will comethat he's working with a builder on plans to construct a 40,000-square-fooyt manufacturing plant at a site near Eglinj Air Force Base in Florida.
Ryan expects to sign off on the planasin mid-2007. The company's headquarters will remainj here. Proxy would seek a third venturwe capital round ofabout $40 million to covefr the manufacturing costs. of New York and othe r unidentified backersinvested $5.25 million in 2004 and signed a second round in August that will deliverf a total of $20 million by the end of Analysts say changing military prioritiexs are pushing the unmanned flight busines to new heights. Ryan says he's had conversations with Departmenty of Homeland Security officials aboug using Proxy aircraft for tasks such asmonitorinh U.S. borders.
He also sees opportunities to sell SkyRaiderws to foreign countries but only afteer complying with export regulations that requirr the aircraft to work onlywhen