The AI-powered defense company founded by tech iconoclast Palmer Luckey has landed a $450 million round of investment that values the startup at $4.6 billion just four years in.
In April, reports suggested that the company was on the hunt for fresh investment and headed for a valuation between four and five billion, up from $1.9 billion in July 2020.
The new Series D round was led by angel investor and serial entrepreneur Elad Gil, a former Twitter VP and Googler with a track record of investments in companies with exponential growth. Andreessen Horowitz, Founders Fund, 8VC, General Catalyst, Lux Capital, Valor Equity Partners and D1 Capital Partners also participated in the round.
“Just as old incumbent institutions with little to no organizational renewal impacted our ability to respond to COVID, the defense industry has undergone significant consolidation over the last 30 years,” Gil wrote in a blog post on the investment. “There has not been a new defense technology company of any scale to directly challenge these incumbents in many decades…”
Anduril launched quietly in 2017 but grew quickly, picking up contracts with Customs and Border Protection and the Marine Corps during the Trump administration. Luckey, the young high-flying founder who sold Oculus to Facebook before being booted from the company, emerged as one of President Trump’s most prominent boosters in the generally Trump-averse tech industry.
The company makes defense hardware, including long-flying drones and surveillance towers that connect to a shared software platform it calls Lattice. The technology can be used to secure military bases, monitor borders and even knock enemy drones out of the sky, in the case of Anduril’s counter-UAS tech known as “Anvil.”
Anduril co-founder and CEO Brian Schimpf describes the company’s mission as one of “transformation,” pairing relatively affordable hardware with sensor fusion and machine learning technologies through a contract partner more nimble than established giants in the defense sector.
“This new round of funding reflects our confidence that the Department of Defense sees the same problems we do, and is serious about deploying emerging technologies at scale across land, sea, air and space domains,” Schimpf said.
The company set its sights on work with the Department of Defense from its earliest days and last year was one of 50 vendors tapped by the DoD to test tech for the Air Force’s own piece of the Joint All-Domain Command & Control (JADC2) project, which seeks to build a smart warfare platform to connect all service members, devices and vehicles that power the U.S. military.
The company’s work with U.S. Customs and Border Protection also matured from a pilot into a program of record last year. Anduril supplies the agency with connected surveillance towers capable of autonomously monitoring stretches of the U.S. border.
In April, Anduril acquired Area-I, a company known for small drones that can be launched from a larger aircraft. Area-I counted the U.S. Army, Air Force, Navy and NASA among its customers, relationships that likely sweetened the deal.
Source: New feed