Thread Secures $15 Million in Series A Funding to Revolutionize Utility Inspections with Robotics
Thread, a pioneering startup developing a robotics platform tailored for collecting inspection data in the utility sector, has successfully raised $15 million in its Series A funding round. The round was led by Badlands Capital, with key contributions from Minnkota Power Cooperative, Generational Partners, Rosecliff Ventures, Excell Partners, Homegrown Capital, and Kevin O’Leary’s Wonder Fund North Dakota.
Founded by Joshua Riedy, Jim Higgins, and Travis Desell, the trio met at the University of North Dakota while developing software for FedEx. Their shared passion for technology led them to pivot their focus toward digitizing and modernizing energy assets, including wind turbines.
Beginning their journey with Xcel Energy, a regional investor-owned utility, the team worked on digital transformation initiatives. After securing initial support from Microsoft's TechSpark program, they launched Thread, marking it as only the second North Dakota company to achieve a Series A funding milestone.
“The pandemic underscored supply chain vulnerabilities and the industry's reliance on third-party service providers for asset inspections and monitoring,” Riedy explained in an email interview. “Our customers face challenges in fully digitizing their assets and effectively operationalizing the inspection data and workflows essential for asset management.”
Thread offers a unique solution: a self-contained device equipped with an onboard processor, AI algorithms, and backend management software that autonomously gathers data from various energy assets, including oil, wind, gas, solar, and power transmission facilities. This is achieved by allowing clients to deploy and manage drones and robots for real-time asset monitoring.
Energy and utility operators using Thread benefit from a comprehensive suite of integrations that provide real-time data from their existing software systems. Additionally, they receive templated data pipelines Riedy describes as “predictable and governable.”
“By enabling clients to carry out in-house inspections on demand, they can create a digital asset health record using standardized methodologies across their ecosystems, which encompass power generation, transmission, and distribution,” Riedy noted. “This robust data structure not only supports analytics but also merges with other data sources, empowering C-suite leaders with holistic insights into asset performance and maintenance strategies to mitigate financial and reputational risks.”
As the market for drone-based energy utility inspections grows, Riedy sees Thread positioning itself against three categories: traditional inspection services that do not use drones, drone service providers offering pilots and software, and fully autonomous drone inspection companies focused on utility assets.
Notably, companies such as Zeitview, formerly known as DroneBase, have recently raised $55 million to enhance their platforms using aerial robotics and sensors for monitoring solar panels and turbines. Aerones is developing a fleet dedicated to inspecting wind turbines, while Skyqraft specializes in robotic systems for powerline issue detection.
Despite the competition, Thread has secured a range of clients, including Xcel Energy, Constellation Energy, and Otter Tail Power. The company has formed partnerships with asset protection firms like Mistras Group and has begun collaborating with the U.S. Air Force to create a drone system aimed at improving security at Grand Forks Air Force Base in North Dakota.
Regarding the Air Force contract, Riedy revealed that it is valued at approximately $1.2 million. He elaborated, “The award, issued by AFWERX, a division of the Air Force Research Laboratory, is intended to bolster the 5,773-acre base’s defense against various threats and trespassing, allowing us to allocate resources to additional security priorities.”
Riedy likened Thread’s potential impact on asset performance management in the energy sector to the transformative effect of Wisconsin's Epic in electronic medical records. He emphasized that Thread’s current focus remains firmly on the utility industry and not on diversifying into other sectors.
The funding raised in Thread’s Series A round, which was initially announced nearly a year ago, will be directed toward hiring technical talent and launching its inspection product for power lines. Additionally, Thread aims to strengthen its business development activities and expand its workforce, which currently consists of 50 full-time employees.
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