SPEXI Secures $16.2 Million CAD to Fuel Growth of Blockchain Drone Imagery Network

Vancouver-based Spexi Geospatial has raised $16.2 million CAD in a Series A funding round to further develop its innovative image-capturing drone pilot network and expand the applications of its technology. The funding was led by Blockchange Ventures, a venture capital firm based in New York that specializes in blockchain technologies, which had previously backed Spexi in earlier rounds. This continued partnership underscores the firm’s confidence in Spexi’s potential and its blockchain-driven approach. Despite reaching out for more details, BetaKit had not received a response from Spexi by the time of publication.

Spexi, founded in 2017, operates a unique blockchain-powered “fly-to-earn” network, which incentivizes drone pilots to capture high-resolution aerial imagery for a variety of critical applications. These applications span emergency disaster preparedness and response, smart city development, infrastructure inspections, and natural resource monitoring. Spexi claims its platform offers imagery that is not only higher quality and more cost-effective than traditional satellite or aerial photography but is also updated more frequently. This is made possible by the growing network of drone pilots that gather imagery over standardized 24-acre hexagonal regions referred to as “Spexigons.”

To incentivize participation, Spexi rewards drone pilots with both cash and reputation points. Pilots earn reputation points for uploading their flight data, and these points can be used to reserve Spexigons for future missions. The reputation system serves as a way to encourage good behavior and reward pilots who contribute positively to the platform. However, points are deducted for pilots who fail to meet the platform’s standards or operate unsafely, creating a balanced approach to maintaining quality across the network. Those with higher reputation scores are given greater opportunities to participate in future missions, enhancing their chances to earn rewards.

The long-term goal of Spexi is to create a tokenized infrastructure that will reward drone pilots with a native cryptocurrency token, called SPEXI. These tokens will be used to reserve preferential Spexigon capture periods or to receive credits for data processing services. However, Spexi has indicated that it will wait for regulatory clarity before distributing the SPEXI token, as it is still pending approval. The company has been clear that having a strong reputation score will not automatically guarantee eligibility for the token distribution, highlighting the regulatory hurdles the company must navigate before realizing its token-based economy.

This latest funding round follows Spexi’s successful $7.8 million CAD seed round in 2022, which was also led by Blockchange Ventures and included participation from other industry players such as Protocol Labs, InDro Robotics, and Dapper Labs. With the Series A investment, Spexi plans to further expand its network of drone pilots and develop new applications for autonomous systems, smart infrastructure, AI, and gaming industries. This funding will help the company scale its technology and services, bringing its image-capturing capabilities to more customers across different sectors.

In a statement, Spexi CEO Bill Lakeland emphasized the company’s unique value proposition, noting that Spexi’s ability to scale rapidly while maintaining near-zero emissions is a key factor in its success. He proudly highlighted that Spexi is already providing essential services to government agencies and emergency response organizations at a significantly lower cost than traditional methods, thanks to its innovative approach to aerial imagery. This ability to deliver high-quality data with minimal environmental impact also aligns with broader trends towards sustainability in tech industries.

However, BetaKit reached out for clarification on whether the company’s claim of “near zero emissions” takes into account the environmental impact of the blockchain and AI technologies it utilizes. Both blockchain and AI are known to be energy-intensive, and as Spexi expands its use of these technologies, it will need to ensure its operations are as sustainable as possible. The company’s claim of minimal emissions could be impacted by the growing computational power required to process and secure the vast amounts of data generated by its network.

Since its inception, Spexi has facilitated over 50,000 drone missions, producing more than 3.7 million aerial images across multiple regions, including Canada, the United States, Mexico, and the United Kingdom. These images have been utilized in various industries for tasks such as environmental monitoring, disaster response, and infrastructure inspections. Furthermore, earlier this year, Spexi secured a $1 million CAD contract from the Government of Canada to capture Earth imagery aimed at improving emergency preparedness and response strategies for wildfires. This contract highlights the company’s growing role in supporting government and emergency services with critical data that can improve decision-making and public safety in times of crisis.

With the recent funding and new contract in place, Spexi is well-positioned to expand its influence in both the public and private sectors. Its innovative use of drones, blockchain, and AI is helping to push the boundaries of what is possible in the field of geospatial data collection. As the company continues to grow, it aims to offer even more impactful solutions for industries in need of accurate, real-time, and cost-effective aerial imagery, all while contributing to the development of a more sustainable and efficient infrastructure for drone-based data collection.