Nearly a decade ago, brothers Aviv and Matteo Shapira founded Replay, a company that developed a video format for 360-degree replays – the kind of replays that have become an integral part of major sports broadcasts.
Replay caught the attention of Intel, which acquired the company in 2016 for a reported $175 million, and led Aviv and Matteo to a chance meeting with Rubi Liani, the founder of the Official Israeli Drone Racing League (FRIL).
Liani got the brothers excited about drone racing and laid the foundation for the idea for their next startup, Xtend, which he co-founded.
“As founders, we saw an opportunity to bridge the gap between our experiences,” Aviv told TechCrunch. “We recognized the extraordinary capabilities required to control advanced robots, especially drones. Our vision was to develop technology that would make controlling these robots intuitive and accessible, similar to how users interact with smartphones, without requiring in-depth technical knowledge.”
Xtend offers a platform that allows operators to manage drones and robots, developed both by Xtend itself and by third parties. With the platform today, the company announced a $40 million funding round led by Chartered Group with a post-money valuation of around $110 million.
“Our platform enables drones and robots to perform certain tasks autonomously, such as entering buildings and scanning floors,” Aviv said. “What is crucial is that ‘common sense’ decisions – such as assessing situations or adapting to unforeseen circumstances – remain in the hands of human superiors.”
Xtend allows operators to orchestrate teams of drones and robots – not just individual machines – and have them perform specific tasks autonomously, such as: B. moving from waypoint to waypoint. Meanwhile, Xtend analyzes data from previous operations to recommend actions an operator could take.
Xtends Wolverine drone.
“Xos allows a single supervisor to oversee a team of robots performing tasks in different locations simultaneously,” Aviv said. “We believe that complete autonomy is not the ultimate goal, but rather a subset of capabilities.”
Xtend presents its technology as universally applicable, targeting customers in industries ranging from public safety to logistics. However, the company is heavily focused on military, defense and law enforcement applications.
Xtend has contracts with the Israel Defense Forces (IDF) and the U.S. Department of Defense to “develop and deliver its systems,” including drone interceptor systems, for “operational evaluation” — including a $9 million deal with the US Department of Defense’s Irregular Warfare Office Pentagons. And Aviv isn’t shying away from the company’s ambitions to move into what he calls “new civilian market opportunities,” such as private and public security.
“Imagine a police officer coordinating drones to search a large area for a suspect,” Aviv said. “Xos can enable these professionals to use robotic assistance.”
This could be problematic as regulations governing use by law enforcement are still largely lacking and drones are used to monitor legal demonstrations. For example, in 2020, Democrats in Congress raised the alarm that then-President Donald Trump’s administration had used drones and spy planes to monitor demonstrations in Las Vegas, Minneapolis and Washington, DC, according to Al Jazeera.
In addition, Xtend recently found itself in the crosshairs of international observers.
Statewatch and the Militarization Observatory (IMI) found in an analysis that Xtend, among other Israeli military companies and institutions involved in drone use, received a research and development grant from the EU, despite a ban on EU funding for military and defense projects Horizon Europe fund.
Aviv has taken a staunchly pro-Israel stance in the country’s ongoing war with Hamas, telling Ctech that Xtend has “focused its energies on supporting the IDF 100%.” On its website, which features testimonials from Israeli troops in Gaza, Xtend says it “enables soldiers to carry out precise maneuvers in complex combat scenarios.”
In an interview with the Wall Street Journal, Aviv said that Xtend has been working with the IDF for some time – initially to shoot down incendiary balloons from the Gaza Strip. Since then, its drones have been used to map and explore underground tunnels dug by Hamas in Gaza – and, more worryingly, sent on reconnaissance missions equipped with explosive payloads such as grenades.
As controversial as the strategy may be, it appears to be working for Xtend’s business. The company says it has secured $50 million in contracts to date for its customer base from “over 50” organizations, including government defense agencies.
“We are unlocking the true potential of robotics in complex scenarios, including first response, search and rescue, and critical infrastructure inspection,” Aviv said. “Hundreds of Xtend’s drone and robotic systems are already in use around the world, and we continue to advance Xos and these platforms to enable the future of human-machine teaming.”
With the new funding bringing Xtend’s total revenue to $65 million, -as-A-Service and Software-as-a-Service sales models. The roadmap includes international expansion with a particular focus on Japan.