Reliable Robotics' Series D swells to $275M as valuation clears $1B

Reliable Robotics has tacked another $115 million onto its Series D, bringing the round to $275 million and pushing the Mountain View, California company's valuation past $1 billion.

The financing, announced Tuesday, October 20, splits into $90 million of equity and a $25 million term loan from Silicon Valley Bank. Returning investor Nimble Partners led the round, joined by new backers Gideon Capital, RockCreek, Geek Ventures, Gold Hill Capital and Sparkwave Capital. Island Green Partners participated again, and Allen & Company supported the fundraising. Reliable has now raised more than $380 million in equity capital across its life.

The company's thesis is that the fastest route to autonomous flight runs through aircraft already in service rather than clean-sheet designs. Reliable retrofits existing planes with autonomous flight systems, a bet it says could lower operating costs and chip away at some of aviation's most stubborn safety problems. Its core product, the Reliable Autonomy System, bundles automated flight controls, advanced navigation and flight planning, and is being developed for the Cessna 208B Grand Caravan, a widely flown regional cargo aircraft. Reliable is also building its own radar to detect potential collisions with other aircraft and obstacles, and is targeting hazards including loss of control and controlled flight into terrain.

The new capital goes toward expanding the aircraft fleet, increasing production capacity and hiring more engineers. Reliable is opening offices in Seattle and San Diego to put its workforce of more than 250 employees closer to aviation and engineering talent pools.

The harder problem is paper, not capital. Aircraft must clear strict federal safety requirements before routine commercial flights, and Reliable is working with the Federal Aviation Administration to certify its automated flight systems — a process that demands extensive testing and documentation. CEO Robert Rose expects the first certification, covering continuous autopilot operation with a pilot still aboard, within 18 to 24 months. Removing the pilot from the cockpit entirely is expected to take at least three years. Both figures are company estimates rather than regulatory approvals.

Commercial traction outside the certification track is already forming. Reliable holds contracts with multiple branches of the U.S. military, opening potential defense logistics work, and was selected for the FAA's Advanced Air Mobility Integration Pilot Program. That participation includes planned autonomous cargo operations serving smaller and rural communities in New Mexico and Colorado; the U.S. Department of Transportation confirmed the selection in June.

Investor appetite reflects an aviation market that has long labored under high operating costs, pilot shortages in certain segments and the expense of serving smaller destinations. For now, the fresh $115 million buys Reliable more aircraft, more engineers and more runway to prove that autonomy can start with the planes already flying.