Sandpoint Startup Garners Nationwide Attention

For JD Claridge, the past year has been nothing short of success for his company, xCraft, with two Kickstarter campaigns that went far beyond their funding targets and an historic deal on the hit inventor show, Shark Tank.

Claridge, CEO of xCraft, is the inventor of the X PlusOne and the PhoneDrone Ethos. Originally from Spokane, the Sandpoint, Idaho aerospace engineer and licensed pilot says he’s been designing aircraft since he could fly a paper airplane.

“Flying has been a fascination of mine for as long as I can remember,” Claridge said.

He came to Sandpoint initially to work for Quest Aircraft and later began his own consulting firm, Aero Designworks. His drone, the X PlusOne, began as a side project and went through five prototypes, currently hanging in his office, before finding the one that worked.

“It started as a hobby – it was an idea I had and wanted to see if I could develop a working prototype,” he said of the innovative drone design. “The first time we flew it, it was flawless.”

The drone’s uniqueness is its ability to “become an airplane” and transition to forward flight after a vertical lift off. With traditional quadcopters (drones with four motors), the device has to pitch forward to go faster, but there’s a limit because it uses the motor’s forward thrust for lift.

“I thought if we could tilt (the drone) 90 degrees and turn the wings, we’d be using the motor’s power for thrust and just use the battery for power,” he explained.

With the support of Charles Manning, CEO of Kochava and also in Sandpoint, they began xCraft in 2014 focusing solely on the design and manufacturing of drones. The two met informally and later Claridge asked Manning for advice on the X PlusOne.

“I thought it was a cool idea and really well timed,” Manning said. “I told him to go after it, but he wanted me involved.” Manning said he mainly works at promoting the company as an aside to heading Kochava. “I love it,” he said.

From Kickstarter Phenomena to Shark Tank Spotlight

To raise funds and market the X PlusOne, Claridge went to Kickstarter. He initially had a goal of $50,000, which more than doubled to $143,400 before the campaign ended. That success inevitably lead to another.

“We launched that product (X PlusOne), and we got noticed by Shark Tank. They asked if we were interested. They had been looking for a drone company, and we got selected to tape and got aired. Not everyone gets aired,” Claridge said. “That was pretty exciting and a big deal.”

The Shark Tank episode, which aired at the end of October, was distinct from previous ones in that the judges were visibly impressed from the start with the X PlusOne. Having such a huge success with their initial Kickstarter campaign, was also a big advantage to have in their favor.

Claridge also used the opportunity to introduce his newest product, the PhoneDrone Ethos, which converts most smartphones into a drone by inserting it into a protective exoskeleton.

Claridge and Manning initially asked for $500,000 for 20 percent equity; half to expand the X PlusOne and the remainder to develop the PhoneDrone Ethos. Right away, the offers were for more than their request, which is unusual for the show. Kevin O’Leary, “Mr. Wonderful,” offered $750,000 for 25 percent; Lori Greiner, the QVC queen, offered $1 million for 20 percent; and Daymond John offered the same for 25 percent.

Smelling a “shark war” the judges asked for time to discuss a deal amongst themselves, which is unprecedented on the show. The five sharks each bought into the company at $300,000 each for 5 percent equity – for a total of $1.5 million at 25 percent equity in addition to other investors that xCraft already has. More than 10 million people watched the show, and the interest generated from it is showing.

“Since the episode, we’ve been channeling a lot of inbound inquiries for job applications and orders. This will take the company to the next level. We are hiring, and we’ve gotten a lot of good applications,” Claridge said.

Although it’s still early in the partnership with the Shark Tank entrepreneurs, Manning said that they had been in contact with some of them in moving forward.

“We have had contact with their teams and have spoken to Daymond (John). Things are happening already but not a whole lot yet. It was a big thing to share with them – selling $300,000 a month after the deal – that’s not too shabby,” he said.

The Shark Tank episode also helped additionally fund the PhoneDrone Ethos, where users can program their smartphone and insert it into the drone’s structure. The episode coincided with its Kickstarter campaign, and to date, more than 1,000 backers have funded the Kickstarter goal to $283,902 – far beyond the $100,000 target that had been set at the beginning of December.

“We ended up selling 1,256 units which totaled $326,000 or 320 percent of our goal. It’s just something that customers are clearly excited in,” Manning said.

The Stars of xCraft: X PlusOne and PhoneDrone Ethos

Most drones, unmanned aviation vehicles, are multi-rotor aircraft that can hover but can’t travel as fast; the X PlusOne is fast, stable and lightweight, weighing 2.9 lbs. It’s also more affordable than traditional drones at $1,800 and has a Go Pro mount. It’s similar to other drones in that it can hover and land like a traditional multi-rotor drone. What distinguishes it is its upward-facing wing, which allows it to fly vertical at a 90-degree angle and can fly twice as fast than other drones, up to 60 mph for up to 20 minutes.

“What we have accomplished is amazing. It’s a VTOL (Vertical Take-Off and Landing) design – it can hover like a helicopter for take-off and landing, but then go fly like an airplane,” Manning said.

The PhoneDrone Ethos allows users to program the drone’s flight path with an app before placing their smartphone into the drone’s structure.

“It can be fully autonomous. You draw the flight path, and it automatically draws a path back on its own,” Claridge explained. This way, the drone can perform its “mission” and return back to its user. There is also a mode where the user can control the drone from another device.

“It can also follow you at a selected altitude, which is useful for some sports, and take photos,” he said.

While drones are not new, they are creating a buzz as technology allows more people to use one. The military has used variations of drones to collect data or surveillance at least since the 1850s when balloons mounted with bombs were used during the U.S. Civil War.

“(xCraft has) received a tremendous amount of exposure because of Shark Tank and Kickstarter. Drone space as a whole is a really big growth market,” Manning said.

The xCraft drones are meant for a variety of activities from entertainment to commercial applications. To date, most of the orders are for personal use. Users need to comply with Federal Aviation Administration (FAA) regulations, fly no higher than 400 feet and avoid airports. Privacy laws still apply in regards to airspace over private property and government spaces. The current general rule is to “fly within the line of sight.” In mid December, the FAA issued a requirement that drone users register any unmanned aircraft weighing from 1 to 55 pounds on their website.

But the X PlusOne’s capabilities can go far beyond the allowances given to consumers. It can cruise at heights up to 10,000 feet, applicable for activities ranging from aerial photography and mapping to search and rescue. Commercial entities can request FAA permission to use drones at those distances though this market is still relatively untapped. Manning gave an example of its potential use as an agricultural tool.

“What if you used a color spectrum camera where you could see where you were underwater (and) it would give you feedback,” he said.

The military might be an obvious market for drones, but Claridge doesn’t want to see his drones used as weapons.

“We don’t want to be weaponized but (have the drones) used more as a level of surveillance,” he said.

New Market in Drones – Bright Future for xCraft

For this young company, the general interest and excitement over the production of the X PlusOne and the PhoneDrone Ethos is just the beginning of a long line of inventive drones with an abundance of possibilities. Currently, xCraft is considering the demand for larger, faster drones that can fly for longer and with heavier payloads. The xCraft drones could collect data for industries that helicopters provide but at much more reasonable cost.

“We want to get a larger version on the market for industries such as oil rigs and mines. This is a utility-driven business and not just a fancy product,” Manning said. He also noted that Amazon’s recent announcement on a future drone delivery service shows the fast, growing interest companies have in using drones to facilitate their business needs.

But for now, xCraft is manufacturing to fill their Kickstarter orders for shipment and distribution this summer. The versatility of the products allow for it to be applicable to a number of industries and consumers from the hobbyist to the unmanned vehicle (UV) specialist, securing the long-term viability of the products.

“I’m excited to have this in Sandpoint – it’s exciting and there’s nothing but goodness,” Manning said of the company.

Claridge is looking beyond xCraft’s two products and has goals to grow the company and make it an industry leader.

“Our vision is to be in the top three in the drone industry in the next three years. It’s ambitious but possible,” Claridge said.

For more information about xCraft, visit the website xcraft.io.

A Brief History of Drones

Some of the earliest drones date back to the 1850s here in the United States and not surprisingly, were used in military operations.

1849: Balloons mounted with bombs were used during the U.S. Civil War.

1898: A camera mounted to a kite was used for reconnaissance during the Spanish-American Wars.

1900s: Target drones were used to test and train combat pilots.

1916: Remotely piloted planes are developed.

1920s: Remotely controlled ships are used and interest grows in vehicles that can be controlled from a distance.

1946: Pilotless Aircraft Branch established.

1950s: The U.S. Marine Corps used drone to protect surface warships.

1964: Drones are used in spying missions

1968: Lightning Bug drones used for surveillance during the Vietnam War.

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