Japan's Droneshow seeks brighter shine with $750,000 funding round

KANAZAWA, Japan -- With Japanese consumers hungry for post-pandemic entertainment, the country's leading producer of drone light shows has raised 100 million yen ($750,000) to expand and keep up with skyrocketing demand.

Droneshow Japan, which launched in 2020 in this city in Ishikawa prefecture, is a one-stop shop for its namesake events. Its 15 employees, mainly engineers in their early 20s, handle everything from drone and autopilot software development to putting on choreographed shows, complete with music.

The company has run 100-plus events across Japan to date -- more than any of its competitors. In March, a show in Kobe to celebrate the 55th anniversary of action hero Ultraseven drew an audience of more than 100,000.

"Show requests by tourist attractions and municipalities around the country have skyrocketed" in 2023, President Yuki Yamamoto said. As it works to ramp up operations, Droneshow recently announced a successful round of funding from seven companies, led by Mitsui Sumitomo Insurance Venture Capital.

Playing a key role in connecting Droneshow to these investors was the Ishikawa Sunrise Industries Creation Organization, which provides support to small businesses in the prefecture.

A startup accelerator program launched by ISICO last fall provided Droneshow with mentorship from a local entrepreneur with a more established business, who advised the company on growth strategy and introduced it to venture capital firms.

"Mature companies and startups differ in terms of their pace and the support they need," said Yasuki Kawabata, who heads ISICO's growth project promotion department. "We want to provide support that goes beyond subsidies, working by their side to meet their needs."

On the eve of 2022's Hyakumangoku Festival, Kanazawa's biggest summer festival, Droneshow lit up the night sky with a fleet of 60 aerial vehicles, illustrating the crest of the region's former ruling clan against the backdrop of Kanazawa Castle.

It can now operate nearly 10 times as many drones at once -- more than 500 -- and Yamamoto aims to expand this further to 1,000 by fiscal year-end. The company targets annual revenue of 1 billion yen in fiscal 2025 and 2 billion yen in fiscal 2026.

Droneshow plans to hold 80-plus events in 2023, about 60% more than in 2022. It fields a constant stream of inquiries on shows for summer festivals, fireworks events and music videos.

The funding will allow the company to not only step up drone production and add more locations for greater flexibility, but also hire more artists and engineers, to get closer to Yamamoto's ambition of "a world-class show."