Anduriel, company value doubles... The investment boom in U.S. defense startups is spreading

U.S. defense technology startup Anduril Industries, valued at $61 billion (approximately 90.8473 trillion KRW), successfully attracted an additional $5 billion (about 7.4465 trillion KRW) in new investment. This valuation is double the $30.5 billion it received last year, indicating that military technology is rapidly emerging as a “core investment target” in the U.S. venture capital market.

Anduril announced this Series H funding round on Wednesday, May 14. The round was led by Andreessen Horowitz and Thrive Capital. According to Crunchbase, Anduril’s total funding has increased to $11.4 billion (roughly 16.978 trillion KRW). The company is headquartered in Costa Mesa, California, and mainly develops military software, autonomous weapon systems, and surveillance and defense systems.

This large-scale funding aligns with the trend of domestic U.S. capital flowing into startups in military, defense, and national security technology sectors. According to Crunchbase data, as of mid-May this year, startups in military, national security, and law enforcement fields have attracted $13.6 billion (about 20.2545 trillion KRW) in investments. This figure has significantly surpassed the record $8.8 billion set last year, and if current trends continue, the record for 2025 could more than double.

The backdrop also includes the Trump administration’s push for military modernization

Market analysts believe that the surge in investment is driven by the Trump administration’s efforts to modernize the U.S. military and escalating geopolitical tensions. Compared to traditional weapon manufacturing, fields such as artificial intelligence, autonomous driving, space defense, and real-time battlefield software are becoming new growth engines, encouraging more private capital to flow in.

Anduril CEO Brian Schimpf stated in a release, “When the company was founded in 2017, the defense sector was not an active area for venture capital.” He also pointed out, “In recent years, investors have clearly recognized the scale of technological and industrial challenges faced by the U.S. and its allies.” He explained that faster, more flexible, and bold companies are more likely to solve these problems, which underpins the expansion of investment.

In fact, Anduril signed a ten-year, $20 billion (about 29.79k trillion KRW) software and weapons supply contract with the U.S. Army in March this year. Additionally, the company announced participation in the U.S. government’s “Sky Shield” missile defense system project, valued at $185 billion (about 275.5205 trillion KRW). The market’s acceptance of its high valuation is also interpreted as reflecting expectations for these major orders.

Shield AI, Saronic, True Anomaly also secured large-scale funding

Besides Anduril, U.S. defense technology startups have attracted significant investments this year. Notably, Shield AI, headquartered in San Diego, raised $2 billion (about 2.9786 trillion KRW) in March, led by Advent International and JPMorgan Chase. The company develops military AI driving systems and autonomous aircraft technology, bringing its total investment to over $3.5 billion.

Saronic, based in Austin, Texas, raised $1.75 billion (about 2.6063 trillion KRW) in Series D funding led by Kleiner Perkins in the same month. The company develops unmanned surface vessels for naval and defense purposes, with total funding nearing $2.6 billion.

True Anomaly, headquartered in Centennial, Colorado, attracted $600 million (about 893.6 billion KRW) last month in a funding round involving Eclipse and Riot Ventures. The company develops spacecraft and orbital defense systems, seen as a typical case of concentrated funding in space security infrastructure. Its total investment has exceeded $1 billion.

Commercial space company Sierra Space also raised $550 million (about 819.1 billion KRW) in March, led by LuminarX Capital Management. The company is developing commercial space stations, satellite systems, and reusable cargo ships called “Dream Chaser,” targeting both civilian space ventures and military needs. Its total funding has reached approximately $2.2 billion.

Defense technology rising as a new Silicon Valley mainstream

Previously, Silicon Valley’s mainstream investment targets included AI, fintech, and consumer platforms. Recently, however, defense technology companies led by Anduril are gradually taking a position as the “next-generation strategic industry.” Their ability to directly connect with U.S. government procurement markets and secure large, long-term contracts is seen as a key differentiator from typical software startups.

Ultimately, this funding for Anduril is not just a story of individual company growth but also a reflection of the changing landscape of defense technology’s status within the U.S. venture capital scene. If the trend of integrating national security, cutting-edge technology, and private capital continues, valuations in the defense tech sector are likely to keep rising for some time.