Colugo raises $8.5M at $65M valuation to scale electric drones beyond defense

Colugo Systems, an Israeli developer of electric drones used by the military and in civilian operations, has raised $8.5 million in its first funding round, led by Ayalon Insurance and Finance. The round values the company at $65 million before the investment.

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The funding marks a shift for Colugo, which has until now operated without venture capital, relying primarily on product sales. Founded in 2018, the company has quietly built and deployed its aircraft with the Israel Defense Forces and other security agencies. Its proprietary drones are also seeing early adoption in the civilian sector, especially in the growing field of electric vertical takeoff and landing (eVTOL) aircraft.

Colugo drone.

The company’s CEO is Meirav Kirshner, a retired IDF brigadier general and former head of its Personnel Directorate. Its CTO, Amit Regev, is a former drone squadron pilot who helped design the company’s patented electric aircraft and wing systems.

Colugo’s core innovation is what it calls Adaptive Wing Technology, a patented design that allows its aircraft to remain stable and operational in windy or adverse conditions, a longstanding challenge in the drone industry. The company says its technology combines the flexibility of helicopter-style takeoffs with the energy efficiency of fixed-wing flight.

Colugo generated $4 million in revenue in 2024 and says its aircraft are currently used in a range of applications including surveillance, logistics, emergency response, and delivery. The company was recently selected by government entities to develop a logistics drone based on its core platform.

“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.”