North Idaho Startup Garners Nationwide Attention

For J.D. 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 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.

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. 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.

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. It’s also more affordable than traditional drones at $1,800. It has a Go Pro camera mount and can fly up to 60 mph for up to 20 minutes.

The Shark Tank episode also helped additionally fund the PhoneDrone Ethos, which allows users to program the drone’s flight path with an app before placing their smartphone 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 just shy of the two-week end date.

“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 have 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.

While the 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 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.”

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.

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.

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.

“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 xcraft.io.

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