![Defense Startup Anduril Industries Seeking to Raise $500M-Plus: Report](https://dot.la/media-library/anduril-industries-is-getting-hundreds-of-millions-to-build-border-surveillance-tech.jpg?id=26972037&width=1200&height=400&quality=85&coordinates=0%2C132%2C0%2C132)
![dot.LA](https://dot.la/media-library/dot-la-logo.png?id=28274272&width=166&height=100)
Get in the KNOW
on LA Startups & Tech
X
Image by Ian Hurley
Defense Startup Anduril Industries Seeking to Raise $500M-Plus: Report
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Anduril Industries, the Costa Mesa-based defense technology startup and U.S. military contractor, is reportedly looking to raise at least $500 million in an upcoming funding round at a $7 billion pre-money valuation.
Anduril could raise up to $1 billion in the Series E round, The Information reported on Thursday, citing two sources with “direct knowledge of the matter.” The publication also reported the round, which has not yet closed, is being led by an existing investor. The startup has raised $835 million to date from investors including Andreessen Horowitz, Founders Fund, General Catalyst, D1 Capital Partners and venture capitalist Elad Gil. Gil led a $450 million Series D round last June that valued Anduril at $4.6 billion.
Anduril develops and builds both hardware and software for defense applications, including border surveillance towers and self-piloting drones (including an autonomous submarine drone made for deepwater exploration). Its core software product is an operating system called Lattice, which is used to detect potential security threats.
The company has clinched several lucrative government contracts in recent years. In 2020, it struck a deal with U.S. Customs and Border Protection to deploy 200 surveillance towers on the Mexican border. In January, it inked a nearly $1 billion contract with U.S. Special Operations Command for systems that detect and neutralize counter-drone attacks.
Anduril was launched in 2017 by Oculus co-founder Palmer Luckey, who sold the virtual reality headset firm to Facebook for $3 billion in 2014. After leaving Oculus, Luckey founded Anduril alongside Founders Fund partner Trae Stephens and ex-Palantir executives Matt Grimm and Brian Schimpf, who now serves as Anduril’s CEO. Luckey is the company’s chief technology officer.
Anduril and Luckey did not respond to dot.LA’s requests for comment.
From Your Site Articles
- Anduril Industries is Building Border Surveillance Tech - dot.LA ›
- Palmer Luckey's Anduril Introduced Its First Weapon - dot.LA ›
Related Articles Around the Web
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
https://twitter.com/samsonamore
samsonamore@dot.la
AI Dominates the Headlines, but Defense Tech Is Gaining Speed
11:56 AM | January 31, 2025
🔦 Spotlight
Hello, Los Angeles!
This week, DeepSeekAI has been dominating the tech conversation. The Chinese AI startup’s chatbot app surged to the No. 1 spot on the App Store, drawing both excitement and scrutiny. Supporters see its open-weight model as a potential game-changer, offering developers more flexibility compared to closed AI systems like OpenAI’s. But the rapid rise has also raised questions about security, data governance, and global AI competition. Whether DeepSeek will be a long-term disruptor or just a momentary sensation remains to be seen, but one thing is clear—AI remains the tech industry’s driving force.
But while AI continues to dominate headlines, another sector is quietly making waves—defense technology. And one LA-based startup just secured a major endorsement from investors and the U.S. government.
Castelion’s Hypersonic Bet—Can It Outrun the Defense Industry’s Red Tape?
Image Source: Castelion
El Segundo-based Castelionjust raised$100 million to accelerate its mission to build hypersonic weapons faster, cheaper, and at scale. The financing—$70 million in equity (led by Lightspeed Venture Partners with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital, and Interlagos) and $30 million in venture debt (from Silicon Valley Bank)—is the latest sign that venture capital sees national security startups as a high-growth opportunity.
Unlike traditional defense contractors, Castelion is operating like a fast-moving startup, not a slow-moving government supplier. Founded by former SpaceX engineers, the company is applying an iterative, test-heavy approach to building long-range hypersonic strike weapons—which travel at speeds exceeding Mach 5 (3,800+ mph) and are designed to evade modern missile defenses.
Not Just VC-Backed—The U.S. Military is Betting on Castelion Too
While the $100 million raise is a major milestone, Castelion already has funded contracts with the U.S. Navy, U.S. Air Force, and U.S. Army. These contracts are focused on hypersonic technology development and scaled manufacturing, areas where the military has struggled to move quickly due to bureaucratic delays and reliance on traditional defense giants.
To prove it can execute, Castelion recently successfully launched a low-cost ballistic missile from a self-built launcher in Mojave. Now, with both government contracts and venture capital behind it, the company is pushing forward on more flight tests and building out its scaled production capabilities.
Image Source: Castelion - Castelion launches a missile prototype in Mojave, CA
With rising geopolitical tensions and an increasing focus on faster, cost-effective deterrence, Castelion is positioning itself as a new kind of defense player—one that moves at startup speed. Whether it can sustain that pace while navigating the complexities of government procurement remains to be seen, but one thing is clear: the future of defense tech isn’t just about who can build the best weapons—it’s about who can build them fast enough.
🤝 Venture Deals
LA Companies
- Omnitron Sensors, a Los Angeles-based pioneer in microelectromechanical systems (MEMS) fabrication technology, has secured over $13M in a Series A funding round led by Corriente Advisors, LLC, with participation from L'ATTITUDE Ventures. The company plans to use the funds to expand its engineering and operations teams and accelerate the mass production of its first product, a reliable and affordable MEMS step-scanning mirror designed for various applications, including AI data centers, advanced driver assistance systems (ADAS), drones, extended reality (XR) headsets, and toxic gas-detection systems. - learn more
- Camouflet, a Los Angeles-based technology company specializing in AI-driven dynamic pricing solutions, has secured a $12M Series A funding round led by QVM. The company plans to utilize the proceeds to scale its platform across various industries, expand into international markets, and enhance its technology and team to better serve its clients. - learn more
LA Venture Funds
- Clocktower Ventures participated in a $6.2M Seed funding round for Foyer, a New York-based fintech startup that assists individuals in saving for home purchases. The funds will be used to enhance Foyer's platform and expand its user base. - learn more
- Smash Capital participated in ElevenLabs' $180M Series C funding round, bringing the company's valuation to $3.3 billion. Based in New York, ElevenLabs specializes in AI-powered text-to-speech and voice cloning technology. The newly secured funds will be used to enhance its AI audio platform and expand its global presence. - learn more
- March Capital participated in a $25M Series C funding round for SuperOps to support the company's efforts in advancing AI research and development, expanding offerings for mid-market and enterprise managed service providers (MSPs), and scaling its global presence. Additionally, SuperOps is launching an AI-powered Endpoint Management tool to enhance IT team productivity. - learn more
- Cedars-Sinai participated in a $2M funding round for Neu Health to support its AI-driven neurology care platform for conditions like Parkinson’s disease and dementia. Originating from the University of Oxford, Neu Health will use the funds to enter the U.S. market, beginning with a six-month pilot program at Cedars-Sinai focused on improving neurology patient care. - learn more
- Chapter One Ventures participated in a $2.8M seed funding round for Mevvy, a blockchain startup aiming to democratize Maximal Extractable Value (MEV) trading by simplifying access and reducing technical complexities. The funds will be used to further develop Mevvy's platform, expand its user base, and enhance its offerings. - learn more
LA Exits
- Kona, an AI-powered assistant and coach for remote managers, has been acquired by 15Five, a performance management platform. Founded in 2019, Kona integrates with virtual meeting platforms like Zoom and Google Meet to provide tailored coaching and enablement for remote managers. The acquisition aims to enhance 15Five's offerings by incorporating Kona's capabilities to improve manager effectiveness within existing workflows. - learn more
Read moreShow less
LA Tech ‘Moves’: MeWe Taps Apple Co-founder, Aspiration Swipes Tesla Director
12:00 PM | August 05, 2022
Photo by James Opas | Modified by Joshua Letona
“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.
***
Aspiration, a sustainable financial services company, appointed former Tesla director Tim Newell as its first chief innovation officer. Prior to leading teams at Tesla, Newell also worked under the Clinton Administration as a deputy director for policy in the White House office of science and technology.
All-electric vehicle manufacturing company Phoenix Motorcars hired industry veterans Lewis Liu as senior vice president of program management office and business development. Phoenix also hired Mark Hastings as senior vice president of corporate development and strategy and head of investor relations.
Counterpart, a management liability platform, welcomed Claudette Kellner as insurance product lead and Eric Marler as head of claims. Kellner served at Berkley Management Protection as vice president, while Marler previously served as an assistant vice president at the Hanover Insurance Group.
Legal tech and eDiscovery veteran Mark Wentworth joined compliance software company X1 as external vice president of sales and business development.
Sameday Health, a testing and healthcare provider, named Sarah Thomas as general counsel. Thomas previously served at digital health company Favor.
MeWe, an ad-free and privacy-first social network, tapped the co-founder of Apple Steve Wozniak to its advisory board, and co-founder of Harvard Connection Divya Narendra to its board of directors.
Internet marketplace Ad.net, welcomed former Interpublic CEO David Bell to its board of directors.
Science and technology company GATC Health, appointed addiction specialist Jayson A. Hymes as a new advisory board member.
AltaSea, a non-profit organization that aims to accelerate scientific collaboration, added South Bay philanthropist Melanie Lundquist to its board of trustees.
Correction:An earlier version stated Divya Narendra was added to MeWe's advisory board.
From Your Site Articles
Related Articles Around the Web
Read moreShow less
Decerry Donato
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
RELATEDTRENDING
LA TECH JOBS