Board Dynamics at Defy, Inc.: When is the Right Time to Raise the Next Round?

By Anne Beyer, Robert E. Siegel
2024 | Case No. E862 | Length 28 pgs.

Defy, Inc. developed individual safety software solutions for highly automated aircraft operation through its FlySafe modular platform. Defy’s cofounders saw great potential in flying drones to solve the last-mile problem in deliveries. In addition to providing direct economic benefits by reducing logistics costs, customers could help ensure increased safety in residential areas by significantly reducing traffic caused by delivery vehicles. Defy’s customer base included not only many of the leading drone OEMs but also organizations focused on delivering life-saving medical equipment such as AEDs or anti-venom in sparsely populated areas.

Defy had raised €130 million over three rounds—was it now time for the next round? The supervisory board was about to meet, and the CEO needed to make the case.

Learning Objective

This case is designed to help students navigate corporate decision making by reviewing a company’s financial data in detail. The case asks students to review the board materials and proposed fundraising from the board’s point of view – does the company need the cash infusion, or should the board hold off on approving the new funding round?
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