The defense tech sector continues to attract significant investment. Following close on the heels of anti-drone tech startup Epirus’s $250 million Series D, Shield AI, a defense and aerospace startup, has secured a $240 million Series F strategic funding round. This new round values the company at $5.3 billion, almost doubling its previous valuation of $2.7 billion after a $200 million Series F in October 2023. The company later added an additional $300 million in debt and equity to that round.
Shield AI, based in San Diego, develops intelligent, autonomous systems for the defense industry. Its software, such as Hivemind, enables aircraft to operate autonomously in high-threat environments.
The recent funding round saw “major participation from strategic investors” Hanwha Aerospace and L3 Harris Technologies. Existing investors, including Andreessen Horowitz, US Innovative Technology Fund, and Washington Harbour Partners, also participated.
Founded in 2015, Shield AI has raised a total of $1.3 billion, according to Crunchbase. With funding rounds like those for Shield AI and Epirus, venture investment in defense tech is likely to surpass last year’s numbers. In 2024, funding to venture capital-backed startups in military, national security, and law enforcement reached $3 billion, an 11% increase from $2.7 billion in 2023. Saronic, an autonomous surface vessels maker based in Austin, Texas, recently secured a $600 million Series C led by investor Elad Gil, valuing the startup at $4 billion. Saronic develops and produces autonomous surface vehicles for the U.S. Navy.
