Anduril reportedly in talks to raise funding at $100B valuation, more than 3x last year’s mark
Quick Answer
Anduril is reportedly raising funds to achieve a $100 billion valuation, up from $61 billion in May.
Quick Take
The defense tech sector is booming, with venture funding exceeding $12 billion in the first half of 2025, driven by demand for drones and AI in warfare.
Key Points
- Anduril's valuation could rise by $40 billion to $100 billion.
- The company doubled its revenue to $2.2 billion in 2025.
- Defense tech funding more than doubled to over $12 billion in H1 2025.
- Anduril has contracts with the U.S. Department of Defense and NATO.
- Mach Industries and Shield AI also secured significant funding recently.
DeepSignal Analysis
What happened
Anduril is reportedly seeking to raise funds that could increase its valuation to approximately $100 billion, up from $61 billion in May. The defense tech sector is experiencing significant growth, with venture funding exceeding $12 billion in the first half of 2025, driven by demand for drones and AI technologies in warfare.
Key evidence
- Anduril raised $5 billion in May 2025 at a valuation of $61 billion, which was double its previous valuation of $30.5 billion from June 2025.
- The defense tech industry saw venture funding surpass $12 billion in the first half of 2025, more than the nearly $10 billion raised in all of 2025.
- Anduril reported more than doubled revenue to $2.2 billion in 2025 compared to the previous year.
Why it matters
The potential increase in Anduril's valuation reflects a broader trend in the defense tech sector, which is adapting to modern warfare needs. The shift towards cheaper, more expendable systems indicates a significant change in defense contracting dynamics. This trend could influence future investments and innovations in military technology, particularly as geopolitical tensions persist.
What to watch
📖 Reader Mode
~3 min readDefense tech company Anduril is said to be raising a new round of capital that may push its valuation up by a whopping $40 billion to about $100 billion, Reuters reported, citing anonymous sources.
The company, which raised $5 billion in May at a $61 billion valuation — itself roughly double the $30.5 billion valuation it landed in its June 2025 Series G round — may be structuring the fundraise as a two-stage process, with the second stage bringing in investors at a higher valuation. Both tranches could be closed within the year, Reuters reported.
The news comes as the defense tech industry experiences an unprecedented revival, spurred by demand for drones, autonomous craft, and AI’s role in warfare, as war rages both in the Middle East and Eastern Europe. In the first six months of the year, the sector saw venture funding more than double to over $12 billion, eclipsing the nearly $10 billion that startups in the space raised in all of 2025.
Anduril has benefited from this demand, signing contracts with the U.S. Department of Defense, Air Force and Army, the Dutch Ministry of Defence, the NATO, the U.K. Defence Ministry, Poland, and more.
The company said in May that it had more than doubled its revenue to $2.2 billion in 2025 compared to a year earlier.
Other startups have cashed in, too: Military aircraft maker Shield AI in March raised $1.5 billion, Mach Industries quadrupled its valuation to $1.8 billion last month, and Europe’s Helsing this month raised $1.8 billion at an $18 billion valuation.
A common thread across these deals is a shift toward cheaper, more expendable hardware — often called “attritable” systems — rather than the expensive-to-replace equipment that’s defined defense contracting for decades. Mach CEO Ethan Thornton has said Mach is designing systems for the current era of warfare at significantly lower cost than traditional defense contractors, citing Ukraine’s use of autonomous drones as a model.
Separately, both Mach and Anduril have also moved to secure their own propulsion supply. Mach acquired solid rocket motor maker Exquadrum for $50 million in May, while the Pentagon has funded Anduril’s efforts to expand domestic solid rocket motor manufacturing capacity — moves aimed at a supply bottleneck that predates and cuts across the low-cost-weapons trend.
Anduril’s investors include Thrive Capital, Andreessen Horowitz, Founders Fund, ICONIQ, Flux Capital, Greycroft, Altimeter, 1789 Capital, and current U.S. Vice President JD Vance, according to PitchBook.
Anduril did not immediately return a request for comment.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Ram is a financial and tech reporter and editor. He covered North American and European M&A, equity, regulatory news and debt markets at Reuters and Acuris Global, and has also written about travel, tourism, entertainment and books.
You can contact or verify outreach from Ram by emailing ram.iyer@techcrunch.com.
— Originally published at techcrunch.com
Want this in your inbox every morning?
Daily brief at your local 8am — bilingual EN/中文, free.
More from TechCrunch
See more →
AI chip startup Etched defies skeptics, hits $10.3B valuation from big-name investors
AI chip startup Etched has achieved a $10.3 billion valuation after a $300 million Series C funding round, led by Sequoia and supported by notable investors like Andreessen Horowitz. The company claims to have developed innovative low-voltage chips for AI inference, significantly enhancing performance and reducing costs, with $1 billion in orders already booked.
