Colugo Systems, an Israeli company that makes electric drones for both military and civilian use, has raised $8.5 million in its first funding round. Ayalon Insurance and Finance led the investment, valuing the company at $65 million before the new funding.
This funding represents a significant shift for Colugo, which has been operating independently of outside investors until now, relying primarily on product sales and revenue.
Founded in 2018, Colugo has quietly developed and used its drones with the Israel Defense Forces and other security groups. Its special drones are also being used in civilian areas, especially in the fast-growing market for electric vertical take-off and landing (eVTOL) aircraft.
The CEO of the company is Meirav Kirshner, a retired brigadier general from the Israeli army who previously led its Personnel Directorate. The CTO, Amit Regev, is a former drone squadron pilot who helped create the company’s unique electric aircraft and wing systems.
Colugo’s main innovation is called Adaptive Wing Technology. It’s a patented design that helps its drones stay stable and perform well even in strong winds or adverse weather—something that has been a significant challenge for many drone makers.
The company says this technology enables their drones to take off like a helicopter while flying efficiently like a regular airplane, saving energy and improving performance.
Colugo made $4 million in revenue in 2024. Its drones are currently used for various purposes, including surveillance, deliveries, emergency response, and transporting goods.
Recently, the company was selected by government agencies to develop a new logistics drone utilising its primary drone technology.
“This funding will help us scale our R&D and accelerate commercial pilots,” said Kirshner. “It’s an opportunity to expand from security-focused missions into broader markets where our technology has strong advantages.”
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