Verity's AI-powered drones make warehouse management fully autonomous 

The idea for Verity has its roots in Raff's extensive research at ETH Zurich, where he spent five years working on autonomous drones flying without GPS. While taking a sabbatical, he utilized his time to explore how to turn this technical expertise into a viable business. With his entrepreneurial spirit that has already led his previous company, Kiva Systems, to an exit to Amazon, Raff had all the know-how and experience needed to identify an ideal application for the technology: warehousing. His drive was fueled by the confidence he gained from past successes in the logistics industry, coupled with a strong belief that his technology had the potential to create significant value in the real world, beyond research applications.

Finding Markus Hehn and Markus Waibel as co-founders who shared Raff's excitement and vision was crucial for the successful next steps. Together, they transformed Verity from a young startup into a company currently experiencing exponential growth, with revenue doubling each year. In 2023, Verity exceeded the $10 million mark in revenue and is on the verge of celebrating surpassing the 100th client site milestone across three continents. "We are driven by the positive impact we create for our clients, the innovative technology we develop, and the opportunity to build a thriving, growing company," Raff emphasized.

Winning IKEA as the First Major Client

Since its founding in 2014, Verity’s growth has experienced different phases. While in 2016, a proof of concept in warehouses was executed with a major North American retailer, prompting the company’s Series A funding round to fuel the technological development required for this use case, initial monetization was achieved thanks to a dedicated division for live drone events. The purpose was to create a positive cash flow, branding, and visibility for the young company. The live events business continues to generate revenue with good margins. However, this side of the business is not just a financial asset but also a part of the company's DNA, contributing to its strong branding and recruitment efforts.

IKEA first became aware of Verity because of the media coverage of their live drone performances, such as those of Justin Bieber and Cirque du Soleil. When IKEA came across Verity, IKEA was exploring drone technology for its warehouses. It was the perfect moment to find out about Verity. "We were fortunate with our first client," Raff noted. "Their openness to innovation and readiness to embrace cutting-edge technology at just the right moment when we were prepared to execute a pilot were pivotal in making this partnership successful."

Validation from Customers and SEF.Growth

The success with IKEA was marked by an expansion from one pilot site to multiple sites, with the Swedish furniture giant recently disclosing more than 70 sites equipped with the Verity system. " Securing a single pilot is just the beginning and doesn’t signal market validation. True success is demonstrated when multiple clients decide to expand your services across multiple locations, showing clear evidence of the value and the reliability of your system."

Applying for the SEF.Growth High Potential Label was an additional way to gain validation from an independent organization, affirming that the company is on the right path. Verity is set to unveil new technological advancements developed in collaboration with major consumer brands, marking an exciting step forward in the company's growth and capabilities.

Navigating Unexpected Challenges

Even though the drone shows at live events were a key ingredient for Verity's success, this business arm was most impacted by the rise of COVID-19. "The pandemic was a turning point for us, as it brought this revenue stream to a halt," Raff explained. However, Verity swiftly accelerated the development of its warehouse solutions. This heightened focus in deploying resources was painful because it involved layoffs and difficult decisions but ultimately strengthened the company. In hindsight, the pandemic helped Verity find excellent investors and pushed its warehouse solutions to the forefront. Verity has secured 90 million USD in venture funding to fuel its growth.

Raff's optimistic outlook shines through as he reflects on this period: "Challenges are also opportunities. What doesn't kill you makes you stronger." Despite the hardships, he believes that the decisions made during the pandemic were right both for the company and the people involved, even if they were difficult at the time.

High Values as Part of the Company's DNA

In 2019, Verity demonstrated its commitment to doing the right thing in a contract with Cirque du Soleil in China. Although the company had received full prepayment for a project, the event was unexpectedly canceled. Understanding the financial impact on Cirque, Verity voluntarily offered to return a portion of the funds, even without a request from Cirque. "At Verity, we do what’s right, for the client and for ourselves. It always pays off." This gesture strengthened the relationship between the two companies, leading to future collaborations, including an upcoming major event in Las Vegas, after already 400 shows delivered together.

Verity’s journey is one of innovation, resilience, and strategic growth. From its early days as a research project to becoming a key player in warehouse automation, Verity exemplifies how a strong vision, combined with technical expertise and ethical leadership, leads to extraordinary success. Verity has just announced a new major client with UPS and is heading for spectacular horizons.