Episode Transcript
[00:00:00] Bill Daggett: In the U.S. i think the most rapidly growing aspect of the market is what we call DFR now or drone as a first responder. And that's where you have multiple drones and drones in a box scattered through a community. And when a 911 call comes in, a drone is immediately launched and is that first eyes on scene. And we expect that to very rapidly grow across the nation because we're finding that it saves lives, it saves man hours, it changes responses, and it's overall makes the community much safer.
[00:00:34] Intro: Welcome to Hangar X Studios where former fighter pilot and host John Ramstead takes us on a journey across aerospace as it enters an historic period of innovation and transformation.
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Hey, welcome to the Hangar X Studios. And we are live today at the Hive in Grand Forks, North Dakota. And I'm excited to have on today Bill Daggett. Bill, welcome to the podcast.
[00:01:35] Bill Daggett: Thanks John. Thanks for having me on.
[00:01:36] John Ramstead: So this is one of the centers, the headquarters, the epicenters of uas, which is Unmanned Aerial Systems. And basically we're talking everything about drones. And you have an incredible, you have a really interesting background is the Air Force and a pilot. And then you got into the MQ1 and MQ9 program. But you have a company that is really trying to cut through the noise of what is is real in the UAS space, what is not, the applications to commercial and military. And you do a lot of work with your clients and actually how to navigate all this. So tell us a little bit. So you found a Delta advisory group. So first of all, tell us a little bit what DAG does.
[00:02:11] Bill Daggett: Okay. Well, I don't think my background is nearly as interesting as yours, but we try to just help people understand the UAS industry and that depends how we do that depends a lot on the client.
An investor will have much different questions than an inventor or someone that's an international market trying to come into the US Marketplace. So we take our experience and our connections to the industry and help to get to what is real and what is not.
There's a lot of people frankly over promising and under delivering. I've been in the industry now about 20 years. And you've seen a lot of people succeed and a lot of people fail. And so we just try to help people understand so they can make the best decision possible.
[00:02:56] John Ramstead: Yeah. So now let's dive into this a little bit. So first of all, on the investor side, what is real and what is not right now, what is, what are you, how are you helping people that want to invest in the space? Think about it. What are the questions we need to be asking?
[00:03:13] Bill Daggett: Again, it depends on what they're looking at. But one thing that's a very common theme. We see a lot of proposals that are based on regulations changing. And right now it's 108.
[00:03:25] John Ramstead: And now what is 108? For 108 that don't know what that is.
[00:03:29] Bill Daggett: Currently 107 is the FAA regulation that covers commercial UAS operations.
[00:03:37] John Ramstead: So if I become a commercial drone pilot under 107.
[00:03:40] Bill Daggett: Correct. Okay, yeah. Like 91 or 135. 107. The next gen iteration of it will be 108.
Generation before was what's called 333.
But when we see a proposal, a revenue model based on the imminent approval of 108, that's a really, you really need to question that. Because the FAA doesn't move fast. You should measure it in decades. Not that they're not great people trying to do great things, but it's, it is the government. It is the government. And so until that gets passed, you know, any revenue model based specifically on that, one that hinges on that, something you really need to look closely at.
[00:04:22] John Ramstead: And one of the areas, you know, there's, there's a lot of, there's platforms, there's software, there's, there's a lot of problems that we're, that we're trying to solve with different UAS solutions. What are some things you're seeing that, that has, you get, you're, you're excited about.
[00:04:36] Bill Daggett: Personally, in the U.S. i think the most rapidly growing aspect of the market is what we call DFR now or drone as a first responder. And that's where you have multiple drones and drones in a box scattered through a community. And when a 911 call comes in, drone is immediately launched. And is that first eyes on scene. And just recently, I believe New York City is rolling out about 400 of them. And we expect that to very rapidly grow across the nation. Cause we're finding that it saves lives, it saves man hours, it changes responses, and it overall makes the community much safer.
[00:05:16] John Ramstead: Now is that pure surveillance or is there also a kinetic aspect to some of these drone systems?
[00:05:23] Bill Daggett: For dfr, it's surveillance only.
[00:05:24] John Ramstead: Okay.
[00:05:25] Bill Daggett: But that full motion video that can be there in less than a minute is really changing the way law enforcement, fire departments, and all first responders react to an emergency situation.
[00:05:40] John Ramstead: So that kind of brings me into talk about how you work with, you know, let's just say me and Johnny up here at the Hive and we have this great idea and we have a little background in UAS and drones. But we come to you for, hey, we need some help with our business plan, finding investors, kind of really shaping our solution. Could you tell us a couple stories of maybe some companies you've worked with and how you've kind of got them from, you know, where they were to getting some momentum? Sure.
[00:06:06] Bill Daggett: Well, in that situation, we would sit down, go through a discovery period and try to make sure we understand your technology and focus on is there a viable pathway to revenue that we can recognize?
[00:06:19] John Ramstead: Okay.
[00:06:20] Bill Daggett: 1. And it's not specific to this industry, but people sometimes forget that just because something's new to them doesn't mean it's new.
And, you know, so we have, we had a client recently approached us with a really very interesting technology.
We went through the discovery, made sure we understand it, and started reaching out to our network across the nation and talked with one major oem.
[00:06:44] John Ramstead: That's not new.
[00:06:46] Bill Daggett: Well, it was actually pretty new, but they were so excited about this technology. Their internal budget for that particular technology was about $35 million.
[00:06:55] John Ramstead: Oh, okay.
[00:06:56] Bill Daggett: And so we were able to go back to the client and say, you know, obviously we're not going to say names or identify sources, but this is a great technology. But you really need to focus on your IP and your trademark and realize if you're going to bet your house on this or go out and try to attract investors, realize that you. There's other players that aren't on the marketplace right now, but will be soon. So you have a very short Runway if you want to establish.
[00:07:21] John Ramstead: So you got a short Runway and you got to set up some protections of your ideas or you're not going to be able to monetize it.
[00:07:27] Bill Daggett: Correct.
And so not in this industry, but in other industries. I've started companies, so I know. And other members of the team, you know what it's like to go to bed on Thursday night with having no idea how you're going to make payroll on Friday or. And we know what it's.
[00:07:43] John Ramstead: I've been there. Yeah.
[00:07:44] Bill Daggett: So.
And you always find a way, but you never know how you're going to do it. And so we try to bring that to it. So we give the most clear eyed insight possible based on our experience and that allows our clients to make the most informed decision possible.
[00:08:00] John Ramstead: Yeah. Now your background as an Air Force officer and pilot, you flew Lears and then you transitioned up here to Fargo and flew both the MQ1 and the MQ9.
How does that military background and your experience with those platforms help you with.
[00:08:18] Bill Daggett: The work you're doing now that helps us understand the defense market and how to speak the love language, if you will.
Different branches all talk differently, different aspects of the government. And one thing that we believe in the marketplace is right now, although it's changing, it's not necessarily defense is the only place to get a lot of revenue because that's where you're seeing a lot of companies go, but the whole of government as it's rolling out so we can help communicate, identify opportunities, establish those relationships so that we can set up our clients for success.
[00:08:58] John Ramstead: So question for you. So let's say that idea that Johnny and I had, if we want to get a path to revenue or even have some money for really taking our tech and turning it into a commercial, you know, viable solution, what are you recommending to your clients now? Do you pursue like a commercial, like a private approach, or is it, you know, let's go to the military, try to get some funding through. I mean there's a lot of different programs. AF Works and, or darpa. I mean there's a lot.
Or is it. Yes and, or what are your thoughts on how I. How we need to think about that.
[00:09:33] Bill Daggett: Again, we've been in the military long, it depends. But generally speaking, focusing on government clients is probably your best way.
Depending on the technology.
The one thing we do, recommend clients, before you start talking about or coming out of stealth mode or talking or getting a booth, you know, make sure you understand the industry, spend some time, go to some trade shows, listen to the podcast so you can understand what the state of technology is before you start embarking on the adventure. Because it's a rapidly evolving industry and the more, you know, the better decisions you can make.
[00:10:11] John Ramstead: Yeah. Well, as we wrap up, just what final thoughts do you have for people that are really trying to either understand or really, you know, build businesses in this UAS space?
[00:10:22] Bill Daggett: There are a lot of ecosystems throughout the US and there's depending on what your, what aspect of the industry you're looking at. Yeah, Arthropod is a real good one to look at. There's not, not for everyone, but there's a lot of opportunities up here and I suggest people look at it and give it strong consideration.
[00:10:43] John Ramstead: Well, this is a very mature ecosystem for basically everything that ties into the whole, the entire spectrum of everything for uas from development to testing to aerospace to talent. Isn't there?
[00:10:56] Bill Daggett: Isn't there? Absolutely.
[00:10:57] John Ramstead: And it's consulting legal. We're going to have an attorney on later. Like, I mean, there's a lot of expertise.
[00:11:05] Bill Daggett: And you know, this is a great example. It's a town of 70 or 75,000 and this was a very significant investment for the city. And that just shows the level of support not the community and the state and even at the national leadership level that we have for the UAS ecosystem.
[00:11:22] John Ramstead: Awesome. Well, thanks, Bill. Great meeting you.
[00:11:24] Bill Daggett: Pleasure meeting you.
[00:11:25] John Ramstead: Yeah, you too. We'll talk to you soon.
[00:11:26] Bill Daggett: All right, bye now.
