Crowdfunding initiative launched by Target Arm for investment equity
Target Arm Secures Major Funding, Moves into Commercial Sector
Target Arm, a U.S.-based drone technology company, has secured over $5.35 million in non-dilutive contracts with the U.S. Department of Defense. This significant funding, which has also validated the company's technology, has generated a cumulative revenue of $3.65 million as of early 2025.
The company, founded in 2017, specializes in hardware and software solutions for drone launch and recovery on the move. With a reported revenue of $219,098 for fiscal year 2024 and a high gross margin of 97%, Target Arm is currently raising growth capital through an equity crowdfunding round on StartEngine.
Target Arm's focus lies in developing and scaling logistics, delivery, and supply chain drone technologies. The company's small team of about 10 employees suggests it is still in early growth or development stages within the drone technology market. However, the company's first move into the commercial sector, marked by a contract with Recon Rig in March 2025, signifies its ambition to expand beyond military applications.
The proceeds from the recent funding will be used to expand the internal team, particularly in product development, engineering, and business development. The company is also planning to launch new capabilities such as a multi-drone magazine system, allowing vehicles to deploy several drones in rapid succession. Operational software will be enhanced for increased automation and reliability.
At the heart of Target Arm's innovation is its proprietary Tular system, a universal mechanical launch and recovery mechanism for drones. This system enables seamless deployment and recovery of drones from moving vehicles, aircraft, and vessels, eliminating the need to stop operations during takeoff or landing. The company's mission is to automate drone launch and retrieval at speeds up to 65 miles per hour.
Target Arm's valuation has been benchmarked near $60 million. The company is poised to play a key role in the next generation of unmanned systems, given its focus on scalable, production-ready systems. The broader loitering munition and drone market, relevant to their industry niche, is projected to expand significantly from a $2.62 billion valuation in 2024 to $17.82 billion by 2032, indicating substantial market opportunity for companies like Target Arm.
The fundraising campaign aims to finalize engineering and begin commercial manufacturing of the Tular platform. Early investor interest cites the company's dual-use appeal, military endorsements, and growing commercial relevance. Target Arm's technologies, including Ralar, TRACKR, TurboFly, and Maestro, combine to create a unified system that automates drone launch and retrieval.
In summary, Target Arm remains in the capital-raising phase through a Regulation CF offering while advancing its drone launch and recovery technologies, with promising growth potential aligned with the rapidly expanding drone market. The company stands at the intersection of mobility and autonomy, with an active investor community and proven government contracts.
- Target Arm, having secured significant funding, plans to utilize the proceeds for talent expansion, particularly in areas like product development, engineering, and business development, aiming to automate drone launch and retrieval for both military and commercial sectors.
- With the recent funding and the first move into the commercial sector, Target Arm's ambition is clear – to scale its logistics, delivery, and supply chain drone technologies, leveraging technology to venture into the rapidly growing finance market within the drone industry.
