Overview
xCraft is a company that designs and builds innovative Unmanned Aerial Systems (UAS) for the commercial and consumer drone industry. The company’s drone, X PlusOne, was pitched on Shark Tank by founders JD Claridge and Charles Manning.
The company has a net worth of $34 million as of 2024.
Shark Tank Appearance
xCraft founders JD Claridge and Charles Manning appeared on season 7 of Shark Tank, asking for $300,000 for 20% equity. They pitched their prototype product, the PhoneDrone, which had huge potential to reach the mass market.
However, Sharks fought over the deal, and JD and Charles were asked to step out of the room. When they returned, they proposed that the Sharks all join together and invest $1.5 million for 25%.
Mark Cuban was hesitant but eventually agreed to join.
A $1.5 million deal is among the top 10 biggest deals done on the show.
After Shark Tank
The deal with the Sharks never closed, but Charles and JD continued running the business and raising money through crowdfunding campaigns.
In 2018, they ran a StartEngine campaign that raised over $1 million.
Two years later, the PhoneDrone Ethos raised $170,000 on Kickstarter. xCraft currently has eight products in-store and mainly sells to enterprise clients, government agencies, and the military.
The commercial drone market is forecasted to reach $35.6 billion by 2026.
xCraft’s annual revenue for 2021 was $199,122, and it made a net loss of $392,496.
In 2020, they posted a net loss of $1,064,118.
The company raised $2.2 million at a $34 million valuation during the last round of fundraising on StartEngine in December 2021. Despite the impressive valuation, xCraft is struggling to make a profit.
About the Founders
JD Claridge, an aerospace and electrical engineer, and Charles Manning, a serial entrepreneur, are the founders of xCraft.
Claridge had experience working as an aerospace engineer for various aviation companies before establishing xCraft in 2014.
Manning, on the other hand, has held executive positions in companies such as Oracle, M-Code, PLAYXPERT, and Kochava.
Establishing xCraft
JD Claridge launched xCraft in 2014 as a commercial drone company.
Along with a team of experts, he engineered a drone that could maneuver like a helicopter and fly as fast as a plane, rising to heights of up to 10,000 feet.
The X PlusOne, as it was called, was a groundbreaking product for the UAV industry. The entrepreneurs’ Kickstarter campaign raised over $173,000 in pre-orders through Kickstarter and their website.
Lessons From xCraft’s Success
Based on the Shark Tank episode about xCraft, here are three practical tips for aspiring young entrepreneurs:
1. Leverage strategic partnerships
When seeking investment, consider the strategic value that investors can bring beyond just the financial support. xCraft emphasized the operational execution experience of the Sharks over traditional early-stage venture capitalists.
Identify potential investors who can provide industry expertise, valuable networks, and hands-on support that align with your business goals.
2. Be prepared to negotiate and adapt
Flexibility in negotiations can lead to better deals than initially expected. xCraft negotiated a deal that included all five Sharks, securing more money and a higher valuation than they initially proposed.
Be open to discussions and ready to adapt your offers to meet the interests of potential investors while still achieving your business objectives.
3. Communicate your value proposition clearly
Clearly articulate why your business is an attractive investment. xCraft effectively communicated their strategic vision and the benefits of their product, which resonated with the Sharks.
Highlight your unique selling points, market potential, and the strengths of your team to make a compelling case for investment.
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