Drone Bubble Bursts, Wiping Out Startups and Hammering VC Firms

  • Commercial market for unmanned aircraft is slow to take flight
  • Some companies gain by buying up rivals to broaden focus

The Parrot SA AR.Drone, a quadricopter that can be remotely controlled by an Apple iPhone

Photographer: Daniel Acker/Bloomberg
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New commercial drone businesses flooded into the market at the start of the decade, flush with venture capital and giddy with visions of unmanned aircraft being used for everything from delivering packages to fertilizing farmland.

Unmanned aircraft are still seen as a pillar of the future. But for now, all that over-heated enthusiasm is getting a cold blast of reality.