anduril raises $450m as the defense tech company’s valuation soars to $4.6b

Anduril Secures $450 Million Investment

The defense firm powered by artificial intelligence and established by technology innovator Palmer Luckey has successfully obtained a $450 million investment. This funding round values the company at $4.6 billion, a significant milestone achieved within just four years of its inception.

Valuation Growth and Funding Details

Reports surfaced in April indicating the company was actively seeking new investment, with projections placing its valuation between $4 billion and $5 billion. This represents substantial growth from its $1.9 billion valuation in July 2020.

The latest Series D funding round was spearheaded by Elad Gil, a prominent angel investor and experienced entrepreneur. Gil previously held a VP position at Twitter and worked at Google, and has a proven history of investing in rapidly expanding companies.

Investor Participation

Alongside Elad Gil, a diverse group of investors participated in this funding round. These include Andreessen Horowitz, Founders Fund, 8VC, General Catalyst, Lux Capital, Valor Equity Partners, and D1 Capital Partners.

Rationale Behind the Investment

Elad Gil articulated the investment's rationale in a blog post, drawing parallels between institutional stagnation and the response to COVID-19. He highlighted the significant consolidation within the defense industry over the past three decades.

Gil noted the absence of a new, large-scale defense technology company capable of directly challenging established players for many years.

Company History and Early Success

Anduril was founded in 2017 and experienced rapid growth, securing contracts with both Customs and Border Protection and the Marine Corps during the Trump administration.

Palmer Luckey, the founder who previously sold Oculus to Facebook before his departure, became a vocal supporter of President Trump within the tech sector, which generally leaned against him.

Core Technologies and Capabilities

The company develops defense hardware, including long-range drones and interconnected surveillance towers utilizing a software platform called Lattice.

This technology provides capabilities such as securing military installations, monitoring borders, and neutralizing enemy drones with its counter-UAS system, known as “Anvil.”

Mission and Approach

Anduril’s co-founder and CEO, Brian Schimpf, defines the company’s core mission as “transformation.” This involves integrating affordable hardware with sensor fusion and machine learning technologies.

The company aims to be a more adaptable partner for defense contracts compared to traditional, large-scale defense contractors.

Department of Defense Collaboration

Schimpf expressed confidence that the Department of Defense recognizes the existing challenges and is committed to deploying advanced technologies across all domains – land, sea, air, and space.

From its inception, Anduril has focused on collaborating with the Department of Defense. Last year, it was selected as one of 50 vendors to participate in testing technologies for the Air Force’s component of the Joint All-Domain Command & Control (JADC2) project.

This project aims to create an intelligent warfare platform connecting all personnel, devices, and vehicles within the U.S. military.

Border Security and Acquisitions

Anduril’s partnership with U.S. Customs and Border Protection has evolved from a pilot program to a fully established program. The company provides the agency with networked surveillance towers capable of autonomous border monitoring.

In April, Anduril completed the acquisition of Area-I, a company specializing in small drones deployable from larger aircraft. Area-I’s client base included the U.S. Army, Air Force, Navy, and NASA, making it a strategically valuable addition.