Anduril doubles valuation amid soaring interest in defense tech companies

Anduril Industries Inc. raised $5 billion in a new funding round, doubling its valuation to $61 billion. The round was led by Thrive Capital and Andreessen Horowitz, signaling strong investor confidence in defense technology. CEO Brian Schimpf stated the funds will be used to aggressively expand manufacturing capacity, research and development, and infrastructure. The company’s growth reflects a broader trend in venture capital investment in defense tech startups, which nearly doubled to $49.9 billion in 2023, according to PitchBook. Anduril last raised funds at a $30.5 billion valuation in 2023, with a $1 billion contribution from Peter Thiel’s Founders Fund, marking the fund’s largest investment ever. Anduril is also benefiting from increased demand from the U.S. government. The Defense Department announced a framework agreement with Anduril and other companies to launch the Low-Cost Containerized Missiles program, aiming to address critical munitions shortages. Schimpf noted the Pentagon is purchasing thousands of these missiles annually, requiring rapid production scaling. The company is set to begin initial production of unmanned fighter jets this summer at Arsenal 1, its new weapons factory in Ohio. Anduril reported doubling its revenue to $2.2 billion in 2025 and nearly doubling its workforce to meet growing demand. Arsenal 1 will continue expanding over the next few years to support production levels. Schimpf highlighted that defense tech was not a major venture investment category when Anduril was founded in 2017, but this has changed significantly in recent years. The company’s rapid growth aligns with rising geopolitical tensions and increased investment in defense innovation.