Capital
Venture rounds, private investment and government financing for defense businesses.
News
- Capital · DronesAxon targets larger Skydio stake with $1.2 billion investmentAxon will also become the drone maker’s exclusive public safety distributor in the U.S. and Canada.
- CapitalCesiumAstro closes $730 million round to support its own planned satellite constellationThe space communications supplier plans a 737-satellite constellation that would take it into operating its own infrastructure. Janus Henderson led the equity round.
- CapitalHalo Industries gets $75 million conditional Pentagon loan commitment for silicon carbide wafersThe Office of Strategic Capital says its financing would help the laser-based wafer producer approach cost parity with foreign competitors.
- Capital · Office of Strategic Capital6K gets conditional Pentagon loan commitment of up to $250 million for battery cathodesThe Department of War financing would support battery cathode production in Tennessee, with the department expecting it to attract additional private capital. Funding remains subject to conditions.
- Capital · SpaceLeoLabs gets conditional $150 million Department of War loan commitment for radar productionThe financing would expand production and deployment of LeoLabs radars, including mobile Scout units. Dollar-for-dollar co-investment would bring the capital infusion to $300 million, subject to closing requirements.
- CapitalAeroVironment expands revolving credit facility to $450 millionThe Oct. 30 amendment adds $100 million in revolving commitments and brings in BMO Bank as a new lender.
- Capital · DronesAlpha Unmanned Systems closes €4 million financing for Madrid production expansionThe unmanned helicopter maker plans to expand capacity at a new plant. Spain’s export credit agency backs the financing, with Santander, Bankinter and BBVA participating.
- Capital · SpaceNorthwood Space raises $375 million for ground network expansion, Defense Daily reportsDefense Daily reports Northwood plans faster antenna production and 400 more people over three years to expand its ground network.
- Capital · Private equityAE Industrial closes roughly $850 million continuation vehicle for defense distributor Blue RavenLexington Partners leads the vehicle, which AE Industrial says will provide capital for organic initiatives and potential acquisitions as the firm continues its partnership with Blue Raven.
- Capital · HypersonicsHypersonica raises €100 million to accelerate hypersonic missile developmentThe Series B is more than four times February's round, with funds intended to increase testing cadence. Hypersonica aims to develop hypersonic deep-strike systems by 2029.
- Capital · DronesDrone maker Neros gets conditional Pentagon loan commitment of up to $450 millionDepartment of War financing would support domestic drone and component production, including parts for other manufacturers. Neros must meet additional requirements before financial close.
- CapitalFirehawk raises more than $150 million to expand rocket propulsion productionThe Series D will support manufacturing expansion in Oklahoma and Mississippi, with the Lawton propellant plant expected to commission in early 2027.
- CapitalTechPrecision’s revolver extension leaves lender’s default remedies intactBeacon Bank & Trust extended the credit line to Nov. 30 while preserving its right to demand repayment over continuing covenant defaults.
- Capital · SPACREDLattice’s SPAC partner reports $111.6 million in trust after redemptionsThe September deal announcement assumed up to $275 million from Bold Eagle’s trust with no redemptions. Shareholders have approved a deadline extension; the combination vote remains ahead.
- Capital · Defense Production ActEnergy Department commits up to $42 million in DPA funds to Constitution PipelineDefense Production Act funding would support permitting and pre-construction work on the proposed Pennsylvania-to-New York natural gas pipeline.
- Capital · Defense finance institutionsBritain still won't join Canada-led defense bank, Reuters reportsCanada and Britain agreed to develop separate, complementary institutions. Britain won't join the Canada-led bank, Reuters reports, citing a person familiar with the matter.
- Capital · Space launchStoke Space gets conditional $150 million Pentagon loan commitment for second launchpadThe proposed financing would help build Cape Canaveral infrastructure for Nova Block 2, Stoke's larger rocket still in development. Financial close remains conditional.
- CapitalAAR adds $550 million to revolver ahead of MRO Holdings dealThe amendment extends maturity to October 2031 and eases financial covenants as AAR prepares to acquire a controlling stake in the aircraft maintenance company.
- Capital · Defense financeUK and Canada plan two distinct but complementary defense institutionsThe governments agreed to develop a cooperation framework for the planned institutions, intended to work together on industrial priorities, investment opportunities and financing challenges.
- Capital · VentureWatchtower Labs raises $35 million to expand military planning toolsThe seed round backs a logistics prototype contractor planning to expand beyond sustainment. Co-lead investor Shield Capital incubated the company.
- Capital · Defense techWarhound launches with $200 million seed round to supply military working dogsConceived by Palmer Luckey and Ben Lamm, the startup plans to combine cloning, training and Anduril equipment to build a domestic working-dog supply.
- Capital · Public markets riskPension fund alleges York Space Systems omitted satellite funding decision from IPO filingThe complaint alleges the Pentagon decided by 2025 against funding Tranche 3 of the Transport Layer, at least in material part over York's inadequate performance.
- CapitalJPMorganChase’s first-year security equity commitments reach $5 billion, including defense techDefense technologies are among the areas supported by the bank's equity investments; its broader financing work also reaches defense suppliers.
- Capital · Strategic lendingAntheia gets $80 million conditional Pentagon loan commitment for U.S. drug-ingredient productionThe financing would help establish U.S. manufacturing for ingredients Antheia now produces through overseas partners. The company must meet additional requirements before financial close.
- Capital · Unmanned ground vehiclesCanada's Dominion Dynamics targets 2027 to start building Ukrainian TENCORE ground robotsTENCORE would lead the initial TerMIT technology transfer to the 2025-founded Ottawa autonomy startup. The companies are still working toward definitive agreements and named no order, volume or funding source.
- Capital · DronesBadland Batteries' Navy-backed drone cell plant opens after its 2025 production goal passedThe Fargo, N.D., plant will make lithium-ion cells for unmanned systems. Its cell timetable has moved since 2024.
- Capital · PolicySBA will vet Pentagon preferred-equity investments in small and midsize defense suppliersThe Pentagon will also refer loan candidates to the SBA, which will use its 7(a) and 504 lender networks. The announcement gives no dollar amount or terms for the equity.
- Capital · EuropeKongsberg will build a counter-drone plant in Poland to serve its SAN orderThe more than 200 million zloty plant will sustain and manufacture systems for Poland's 18-battery counter-drone program. Kongsberg says serial production can start in the first half of 2028.
- Capital · Air and missile defenseAnduril pitches new Steelfin interceptor as a lower-cost option to PAC-3Anduril executives aim for a third of the PAC-3 MSE's price, Breaking Defense reported. The company declined to say whether Steelfin was selected for the Army's next-generation PAC-3 effort.
- Capital · New ventureOndas owns all of Regna AI, the new defense AI company Palantir will powerOndas, which will be Regna's first customer, expects to engage financial partners over time and named no other customer.
- Capital · Space ISRKapta Space raises $24 million, saying it secured classified moving target indication contractsWashington Harbour Partners led the Series A. Kapta's announcement named no buyer or value for the contracts.
- Capital · Government lendingPentagon's conditional $150 million loan would support PsiQuantum's California prototype hubThe Office of Strategic Capital's commitment goes to a company DARPA is already evaluating in the final stage of its Quantum Benchmarking Initiative. The loan isn't guaranteed.
- Capital · ShipbuildingAnduril adds Gecko Robotics' AI inspection to its submarine shipyard plansAnduril says it is already embedding Gecko's nondestructive testing in production workflows at its California protofactory, ahead of the planned Maryland shipyard. Gecko disclosed no value or financial terms.
- Capital · Space securityFortastra raises $30 million to ready on-orbit security spacecraft for high-rate productionFirst In led the startup's Series A. Fortastra says it has secured initial government contracts but didn't name the buyers or their value.
- Capital · VentureGallatin AI's $50 million raise far outpaces its federal dollars on recordUSAspending records about $2.3 million to the military logistics software maker, whose chief executive said in March it wasn't asking the Army to fund basic R&D.
- Capital · Government financingWolfspeed's conditional $1.5 billion Pentagon loan would first refinance its 2030 notesThe Pentagon would get warrants for up to 7.5% of the silicon carbide maker's fully diluted equity, and nothing funds before definitive agreements are signed.
- Capital · Submarine industrial baseAnduril's next industrial bet is a submarine shipyardAnduril is backing a planned Maryland yard with $3.7 billion in private capital. It says its Navy contract, worth up to $2.9 billion, ties payments to demonstrated production outcomes.
- Capital · VentureAventra plans to take its balloon-deployed Piranha into low-rate initial productionKonvoy led a $17.5 million round, which includes a Western Alliance Bank funding facility of undisclosed size. Aventra's CEO says it has secured first delivery contracts, without naming buyers.
Assessments
- Assessment · Deals and capitalMost defense buys by the private equity firms we track were add-onsPortfolio companies announced 55% of the defense acquisitions and stakes in our study. Excluding the two busiest firms, their share was 52%.
- Assessment · CapitalThe Pentagon's equity stakes concentrate on minerals, metals and magnetsMinerals, metals and magnets: all but one of 13 since July 2025. Three of the four largest disclosed come with a price floor, stockpile contract or seven-year rocket-motor framework agreements.
- Assessment · CompaniesWhere are defense companies putting their cash as buybacks drop?Into two $2 billion-plus deals, plant and dividends. Buybacks at the 25 companies on our growth leaderboard fell by two-thirds in the first half.