Defense and aerospace startup, Shield AI, has successfully secured a $200 million Series F funding round, elevating its valuation to an impressive $2.7 billion.
Defense and aerospace startup, Shield AI, has successfully secured a $200 million Series F funding round, elevating its valuation to an impressive $2.7 billion. The round was co-led by Riot Ventures and Thomas Tull’s US Innovative Technology Fund, along with participation from Ark Investment, Disruptive, and Snowpoint Ventures, alongside returning investors.
San Diego-based Shield AI specializes in creating AI-driven pilots for autonomous aircraft. Their innovative software, Hivemind, empowers aircraft to operate independently in high-threat environments. This latest funding milestone comes less than a year after the company achieved a valuation of $2.2 billion following a $60 million funding round in December.
Co-founder and President Brandon Tseng emphasized the company’s mission, stating, “We’re building the world’s best AI pilot to ensure air superiority and deter conflict because we believe the greatest victory requires no war.”
He further explained that this new funding will expedite the expansion of Shield AI’s product offerings, enabling the deployment of intelligent and cost-effective mass solutions, serving as a critical non-nuclear deterrent for the next three decades.
Since its inception in 2015, defense and aerospace startup Shield AI has raised approximately $773 million, according to Crunchbase, solidifying its position as a leading force in the defense and aerospace sector.
Shield AI’s recent funding round stands out as the most substantial investment in any defense tech startup this year. The defense technology sector has historically attracted less venture capital compared to other tech segments. In 2021, U.S.-based defense tech startups received a total investment of just $2.1 billion across 58 deals. This figure includes Anduril’s notable $1.5 billion Series E funding round in December.
In the current year, defense tech startups have garnered less than $600 million in funding, with Shield AI’s Series F round being a significant contributor to this total.
Investor interest in defense technology has been somewhat limited compared to other tech sectors, often due to ethical considerations. Some investors have been hesitant to support technologies with potential military applications. Additionally, technology companies have approached partnerships with military entities with caution.
However, Shield AI’s success in raising substantial funding underscores the increasing recognition of the critical role that cutting-edge defense technology plays in ensuring national security and global stability. With its innovative AI-driven solutions, Shield AI is at the forefront of revolutionizing autonomous aircraft operations, solidifying its position as a frontrunner in the defense and aerospace industry.