Rainmaker raised $25 million in a Series A funding round in May 2025, led by Lowercarbon Capital. Other participants included Starship Ventures, 1517 Ventures, Long Journey Ventures, Garry Tan, Naval Ravikant, Day One Ventures, and Tamarack Global.

In May 2024, the company secured $6.3 million in a seed round with backing from Starship Ventures, 1517 Ventures, Long Journey Ventures, and several angel investors. Details of an earlier pre-seed round have not been disclosed.

To date, Rainmaker has raised approximately $31.3 million across all funding rounds. The Series A funding is allocated primarily to fleet expansion in the western United States and scaling operations to address increasing demand from water agencies and agricultural clients.

Rainmaker operates autonomous quadcopter drones, known as Elijah, to conduct cloud seeding operations at altitudes of up to 15,000 feet. The system functions as an aerial sprinkler, using weather-resistant drones to release microscopic silver iodide particles into existing clouds to enhance precipitation.

The process begins with a cloud selection engine that integrates NOAA weather feeds and Doppler radar data to identify clouds suitable for seeding. Since July 2025, the system has also incorporated deep-learning weather forecasts from partner Atmo to improve targeting precision.

Each Elijah drone is equipped with dual dispersion systems: traditional burn-in-place flare racks for research purposes and a proprietary aerosol atomizer capable of spraying 50-100 grams of silver iodide per flight. Anti-icing heaters and ruggedized airframes enable the drones to operate within supercooled cloud volumes, where they precisely meter seeding particles.

Following particle release, Rainmaker validates outcomes using ground-based phased-array radar, called Eden, and onboard drone sensors to measure reflectivity changes and calculate incremental precipitation. Customers access a dashboard displaying real-time drone telemetry, seeded versus control cell comparisons, and cumulative acre-feet of water added. Post-mission PDF reports are automatically generated within 24 hours to meet state reporting requirements.

Rainmaker operates as a B2B service provider, offering cloud seeding operations to government water agencies, irrigation districts, and agricultural customers. The company employs a vertically integrated model, owning and operating its drone fleet, dispersion hardware, radar validation systems, and weather modeling software.

The business model is based on multi-year service contracts in which customers pay for operational readiness and flight hours rather than guaranteed precipitation outcomes. This approach provides predictable revenue while accounting for the inherent variability of weather modification results.

Pricing is tied to flight operations, with costs averaging $50 per flight hour, including chemicals and batteries. This represents a cost advantage compared to traditional aircraft-based cloud seeding, which typically ranges from $2,000 to $4,000 per flight hour. Autonomous operations reduce labor costs and enable more frequent, targeted interventions than manned aircraft.

Rainmaker's cost structure leverages economies of scale in drone manufacturing and chemical procurement. The company licenses weather data from third-party providers and has developed proprietary algorithms for cloud selection and flight planning. Revenue growth occurs as customers transition from pilot programs to full operational contracts and as additional agencies implement cloud seeding programs in response to persistent drought conditions.

Weather Modification Inc. and North American Weather Consultants maintain a dominant presence in the traditional cloud seeding market through long-standing relationships with state and local agencies. These companies operate twin-engine aircraft and ground-based generator networks under multi-year sole-source contracts.

Weather Modification Inc. manages North Dakota's 50-year-old hail suppression program and operates across multiple states, providing aircraft, flare racks, and pilot services. North American Weather Consultants runs approximately 200 ground generators across California, Utah, and Colorado and has recently initiated testing of drone-based delivery systems.

These incumbents benefit from decades of procurement relationships and safety records spanning 70 years. However, they face cost disadvantages, with flight hours priced between $2,000 and $4,000 compared to Rainmaker's $50 per hour. Additionally, they contend with ongoing pilot shortages and political opposition in certain rural counties.

SOAR (Seeding Operations & Atmospheric Research) operates as a consultancy across 15 countries, offering hybrid manned-unmanned systems for specialized applications. The company prioritizes international markets and research-focused use cases rather than competing directly in the U.S. operational market.

Several smaller technology firms are developing drone-based cloud seeding capabilities, though most remain in pilot stages and lack the integrated radar validation and autonomous flight systems that distinguish Rainmaker's technology.

The competitive landscape reflects broader trends in the drone industry, including a shift away from Chinese manufacturers like DJI toward domestic providers. Companies such as Skyfish have gained traction by developing integrated technology stacks and building relationships with government customers through enhanced security and autonomous operations capabilities.

This geopolitical shift creates opportunities for U.S.-based drone companies like Rainmaker to secure government contracts. However, it also necessitates significant R&D investment to develop proprietary solutions rather than relying on established foreign suppliers.

Rainmaker is modifying its glaciogenic seeding system for warm-cloud and convective use, enabling year-round operations in tropical and subtropical regions experiencing worsening drought conditions. The existing drone-flare hardware can also be adapted for hail suppression by dispersing larger hygroscopic nuclei, broadening the addressable market to include crop insurance and agricultural protection services.

Wildfire mitigation presents another potential use case, where Rainmaker's drones could deploy hygroscopic salts ahead of dry lightning events to increase local humidity levels. This application could expand the customer base to state fire services and utility companies aiming to mitigate wildfire risks.

The company's Prophet command-and-control software, which integrates radar, satellite, and sensor data, could be offered as a standalone SaaS product. This would appeal to utilities and reinsurers requiring high-resolution weather monitoring independent of cloud seeding operations.

The U.S. Bureau of Reclamation allocated $388 million in Colorado River drought mitigation grants for 2025, with a portion eligible for cloud seeding pilot programs. This federal funding could allow Rainmaker to move beyond state-level contracts and participate in larger regional water management initiatives.

Corporate water stewardship programs are an emerging market, as companies in sectors such as beverages, semiconductors, and data centers aim to meet net-positive water goals. These organizations could purchase offset flights in operational watersheds to align with environmental responsibility and regulatory compliance objectives.

Agricultural consortiums and hydropower utilities also represent logical growth opportunities. Rainmaker's existing state contracts provide case studies for broader adoption among irrigation districts and utility companies seeking to sustain reservoir levels and hydroelectric generation capacity.

Rainmaker currently operates in five western U.S. states, but its convective cloud capabilities could enable service expansion to aquifer-stressed areas such as Texas and Florida. The southeastern U.S., facing increasing drought pressures, lacks the established cloud seeding infrastructure found in western states.

International markets, including the Middle East and Australia, maintain active cloud seeding programs and could serve as export opportunities once FAA validation is complete. The UAE and other arid nations are already testing drone-based precipitation enhancement, creating demand for proven autonomous systems.

Emerging markets face acute water scarcity challenges, with UN projections indicating up to 700 million people at risk of displacement by 2030. Government-to-government partnerships could facilitate Rainmaker's international expansion while contributing to climate adaptation efforts in water-stressed regions.

Regulatory approval: Rainmaker's FAA petition to carry cloud seeding flares on small unmanned aircraft faces opposition from pilot unions and represents a test case for hazardous materials payloads on drones in controlled airspace. Regulatory rejection or the imposition of significant restrictions could constrain the company's operational scope and reduce its competitive differentiation compared to traditional aircraft-based providers.

Weather dependency: Cloud seeding operations require existing cloud formations and specific atmospheric conditions, making them reliant on natural weather patterns that vary by season and geographic region. Prolonged droughts or shifts in regional weather patterns could reduce flight opportunities, limiting the company's ability to deliver measurable outcomes to customers and potentially impacting contract renewals and growth.

Scientific skepticism: The effectiveness of cloud seeding remains a subject of scientific debate, with some studies questioning the quantifiable impact of precipitation enhancement programs. Political opposition has already led certain counties to discontinue weather modification initiatives, and broader public resistance could hinder market adoption and create additional regulatory challenges for the industry.