Capital · Venture
Watchtower Labs raises $35 million to expand military planning tools
The seed round backs a logistics prototype contractor planning to expand beyond sustainment. Co-lead investor Shield Capital incubated the company.
Watchtower Labs emerged from stealth on Oct. 21, 2026, with $35 million in seed financing led by Shield Capital and Conviction, with Founders Fund participating.1
Watchtower is starting with logistics planning
$35 million in seed financing
awarded two prototype contracts to Air Space Intelligence (ASI) and Watchtower Labs, Inc.
The company says the financing will support team growth, more applications, and continued testing and deployment as the technology extends beyond sustainment into broader operational planning
Source: Watchtower Labs release via PR Newswire; Defense Innovation Unit. As of Oct. 21, 2026.
The company is starting with logistics planning and already holds a government prototype contract.1–2 It says the financing will support team growth, more applications, and continued testing and deployment as its technology extends beyond sustainment into broader operational planning.1
Shield's involvement extends beyond the financing: Watchtower was incubated within the venture firm, and Shield founder and managing partner Raj Shah chairs the company. Watchtower's co-founders include Akhil Iyer, a former Marine special operations officer and Shield investor, alongside Souren Aghajanyan and John Morman.1
The Defense Innovation Unit awarded prototype contracts to Watchtower and Air Space Intelligence in January 2026 under its Joint Sustainment Decision Tool program, following a competitive commercial solutions opening assessment.2
DIU says the vendors will deliver logistics planning tools to monitor and forecast requirements for munitions, fuel, medical materiel and spare parts. Integration with mission partners will be an early priority during the prototype period, according to DIU.2
Sources (2)
- Watchtower Labs press release, PR Newswire, Oct. 21, 2026 www.prnewswire.com
- DIU: Three Contracts Awarded To Modernize Decision-Making for DoW’s Joint Logistics Enterprise (updated July 9, 2026) www.diu.mil