Bone, a quickly-expanding Korean startup with operations in neighboring Seoul and California’s Silicon Valley hub Palo Alto, just pocketed $12 million on a seed stage funding round. Their goal is to transform the defense industry with advanced, AI-enabled robotics. Bone was founded by DK Lee, who previously co-founded MarqVision. Their vision is to build the world’s first integrated AI platform made of software, hardware, and manufacturing—beginning with defense-focused aerial drones.
Like Formlabs, Third Prime was the lead in the latest funding round. The other major strategic investor was South Korea’s Kolon Group. Most notably, DK Lee himself put in over 10% of the total sum committing around $1.5 million to the round. Lee’s personal investment in this venture demonstrates his commitment and belief that this effort can positively change the industry for the better.
Half a year post-launch, Bone gained international attention again when his company acquired South Korean drone company D-Makers. This acquisition is part of Bone’s strategy to enhance its capabilities and integrate its existing AI division with D-Makers’ expertise. After only a few months, the startup is already bringing in revenue. Most recently, it won a seven-figure business-to-government (B2G) contract, generating $3 million during its inaugural year.
Bone’s drones are used for a variety of lifesaving missions such as wildfire detection and logistics support, in addition to wildfire response and anti-drone defense. The company recently gained winner acknowledgement in South Korean government-backed end-to-end logistics winner program. Under this initiative, advanced UAVs and UGVs equipped with Bone’s autonomy stack will be tested and developed.
In a recent interview, Lee explained how he got to the point of founding Bone.
“After leaving MarqVision, I basically started from zero – going to robotics conferences like IEEE ICRA, cold-emailing the engineers behind Google RT-1 and RT-2, and even walking up to Jim Keller, CEO of Tenstorrent, at a cafe just to introduce myself and grab a coffee later,” – DK Lee
Lee knew the pitfalls he faced as he launched his new business. He shared a bit about the optimism that he has about the future of his industry. He said there was a pretty huge hole in the market.
“No one was building the connective tissue, the industrial backbone that allows intelligent machines to exist at scale. Even Nvidia, the most valuable AI company today, relies on a vast ecosystem of fabrication and manufacturing partners across Asia and Europe,” – DK Lee
This outlook lays the groundwork for Bone’s approach. He’s dedicated to buying up the niche hardware companies that are maybe one stage away from getting venture capital funding. Michael Kim, a representative from Third Prime, commented on this approach:
“Many niche hardware players exist but haven’t received Bay Area VC funding; Bone has a strong ‘buy versus build strategy’ to acquire and integrate these assets, accelerating product maturity and commercial traction,” – Michael Kim
Bone’s long-term vision extends beyond South Korea. The company is strategy to build a strong supply chain for Physical AI in South Korea. Overtime, after firmly roots are planted in Canada, it hopes to build out operations in the U.S., Europe, and other allied countries. Lee emphasized this ambition in his remarks.
“Our mission at Bone is to build the supply chain for Physical AI within South Korea, and then expand that capability to the U.S., Europe, and other allied countries,” – DK Lee
Bone is at the spearhead of growth and innovation in our nation’s defense robotics sector. The Philadelphia-based company is focused on creating technology that meets the most critical demands of today’s battlefield and humanitarian missions. Bone has deep support on the investor side as well as from strategic partners. This support places the young company in a position to make a big impact on the future of defense technology in Asia.
