While Skydio lost out on its U.S. Army contract to Red Cat, it did bring in $170 million in funding this week.

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America’s supply chain vulnerabilities were on full display Thursday after drone manufacturer Skydio told customers it was facing a battery squeeze after being hit with sanctions from China.

Things are also looking up for Skydio’s military ambitions: of the $1.2 billion bookings in the pipeline, over 50% was ordered by defense customers. In addition to winning contracts with law ...