What happened: EHang has postponed its IPO in favor of a round of private fundraising, according to sources. The Guangzhou-based drone company will seek $200 million from private investors, significantly less than the $400 million to $500 million it was hoping to raise in its IPO. The five-year-old company made waves in 2016 when it unveiled a passenger drone concept that by 2017 could carry one person at speeds of up to 130 kilometers per hour.
Why it’s important: Even with the global drone market forecasted to grow 30% per year for the next five years, EHang lags domestic competitors like DJI, which is the world’s largest non-military drone manufacturer. The news of EHang’s postponed IPO comes less than a week after the IPO filing for crypto exchange Bitmain expired in Hong Kong. With the smaller of the Chinese drone firms out of the conversation, all eyes will be on DJI as it picks a location for its eventual public offering.