Anduril Industries
Valued at $20 billion + per trades in the secondary market, Anduril is at the forefront of AI-enabled defense systems. The company specializes in autonomous weapon systems and is preparing to build a massive drone factory in Ohio, showcasing its rapid growth and ambition.

Shield AI
With a valuation of $2.8 billion, Shield AI focuses on developing autonomous drones and AI systems for complex military operations. Their innovative approach to AI in defense has attracted significant investor attention.

Saronic
This startup is making waves with its autonomous maritime vehicles designed for military operations and maritime security1. Saronic’s technology could revolutionize naval warfare and coastal defense strategies.

Skydio
As the largest drone manufacturer in the United States, Skydio has secured over half of its $1.2 billion in bookings from defense customers1. Their focus on expanding globally and improving drone connectivity positions them as a key player in the defense drone market.

Rebellion Defense
Developing AI software for military threat detection and decision-making, Rebellion Defense achieved unicorn status just a few years after its founding in 201918. Their recent selection to support US Navy Project Overmatch underscores their growing influence in the sector.

Firefly Aerospace
Valued at $2 billion, Firefly Aerospace is making significant strides in space technology for defense applications4. With their first moon landing mission for NASA and plans for dozens more this year, Firefly is rapidly expanding its presence in both commercial and defense space operations.

The Changing Landscape of Defense Technology
The rise of these startups marks a significant shift in the defense industry. Traditionally dominated by established contractors, the sector is now seeing an influx of innovative companies backed by venture capital. This transformation is driven by the need for rapid technological advancement to address evolving global threats and the Department of Defense’s increasing openness to working with startups.

The success of companies like SpaceX and Palantir has paved the way for this new wave of defense tech startups, proving that commercial ecosystems can deliver advanced technologies at unprecedented speeds6. As a result, venture capital firms are investing heavily in this space, with tens of billions poured into new defense technologies6.

As we move further into 2025, these startups are poised to play an increasingly crucial role in shaping the future of national security and defense strategies. Their ability to innovate quickly and adapt to changing threats makes them valuable assets in maintaining technological superiority in an ever-evolving global landscape.