Hylio

Hylio develops autonomous drones for “precision agriculture.”

Using Hylio’s fleet of unmanned aerial vehicles, farmers and food producers can quickly identify problem areas, and apply crop treatments efficiently. This enables them to increase their yields and deliver more food to customers.

This company is at the intersection of a few massive markets. These include the agricultural equipment market ($139 billion), the global drone market (projected to reach $43 billion by 2024), and the agricultural technology market (projected to reach $22 billion by 2025).

The goal of Hylio’s drones, which it calls its “AgroDrones,” is to help farmers grow crops more efficiently. This isn’t just a significant need — it’s a timely one.

In order to meet demand, food production must double by 2050. And traditional farming methods can’t keep up. With limited land available for farming, farmers must become more efficient with each existing acre.

To do this, farmers need help identifying and treating “problem areas” — i.e., spots where crops have trouble growing or areas that are plagued by pests. Hylio’s drones provide a solution.

Essentially, these drones aid farmers using a three-step process. The steps are as follows:

• Diagnose: First, the drones identify problem areas using data gathered from various sensors.

• Prescribe: Next, the company’s drone-control software converts the data to an action plan.

• Treat: Finally, fleets of drones can be directed to the site and apply the necessary treatment.

At the same time, each flight is tracked, and farmers can easily search for and display data so they know exactly where each treatment was applied. Reports help streamline billing and compliance while helping farmers plan their future crop care applications.

Hylio’s drone systems are efficient, rugged, and reliable. They are easy to deploy, and can be up and running in minutes. GPS systems and altimetry sensors ensure that the drones maintain precise routing. And millimeter wave radars can detect and avoid objects such as trees, fences, or wires.

Notably, while other companies in the “ag tech” space rely on third-party products and systems, Hylio develops and owns its core technology in-house.

The company generates revenue through initial purchases of its drone systems, as well as tiered subscription plans.

With the upfront purchase of its drones, customers gain access to basic ground control software. These drones are sold as kits, which include the aircraft, batteries, chargers, ground station components, tools, and a 1-year warranty. Kits range in price from $22,000 to $38,000.

Additionally, customers can purchase software subscriptions which provide access to more premium features. Subscriptions are offered at $500 per month for the standard level, $1,000 for the advanced level, and $1,500 per month for the enterprise level. Each level unlocks access to additional features.

Hylio’s annual sales have grown at an average rate of 347% since 2019. And thecompany brought in $1 million in sales in 2020.

The company currently has six customers, including the government of El Salvador, Texas A&M University, and Mitre Corporation. It’s one of a handful of companies in the U.S. that have received a Part 137 certification from the Federal Aviation Administration that allows for unmanned aerial systems crop spraying.

Team Background

Nicholas Nawratil - Chief Operating Officer

Nick began working with drones while studying aerospace engineering at the University of Texas.

While there, he started and managed a utilities installation company that used drones to service the Austin area. He joined Hylio in May 2017.

He earned a Bachelor’s in Aerospace Engineering from the University of Texas at Austin.

Nikhil Dixit - Co-Founder & CTO

Nikhil began his career working with Qualcomm, a telecom company. From there, he spent three years as a computer architect with NVIDIA, a computer hardware company.

He earned Bachelor’s degrees in Computer Science and Electrical and Computer Engineering, as well as a Master’s degree in Computer Systems from the University of Texas at Austin.

Mike Oda - Co-Founder & CFO

Mike has a background in finance. Initially, he managed his family’s businesses, including wholesale import and distribution of engineering products. More recently, he worked with Pacific Arc, a wholesale business selling art and drafting supplies to retailers.

He earned a Bachelor’s degree in Finance from the University of Texas at Austin.

Arthur Erickson - Co-Founder & CEO

Like Nick, Arthur’s interest in unmanned aerial systems began when he was studying aerospace engineering at the University of Texas at Austin.

While studying, he worked with a research team to deploy drones for disaster prediction and response. Recognizing the potential of drone technology, he started Hylio in 2015.

In addition to his role with Hylio, Arthur has led a special drone delivery project in Costa Rica in collaboration with a startup called GoPato.

Co-Investors