USA (Transatlantic Today) – Defence technology start-up Anduril Industries has successfully raised $1.5 billion in funding to enhance its production capabilities for autonomous weapons. This new capital injection, co-led by Peter Thiel’s Founders Fund and Virginia-based Sands Capital, has elevated Anduril’s valuation to $14 billion, doubling its worth since its last funding round in December 2022. Other notable investors include Fidelity Management, Baillie Gifford, and Franklin Venture Partners.
The substantial funding will be allocated to produce new manufacturing facilities capable of mass producing “tens of thousands of autonomous weapons systems addressing the urgent needs of the United States and our allies”.. The company plans to invest hundreds of millions of dollars into establishing its first facility, Arsenal-1, within the U.S., with a potential second facility abroad.
Shift in Venture Capital Sentiment
The quick expansion of Anduril is indicative of a larger pattern of higher venture capital funding for defense technology. Venture capital in the field has increased dramatically after Russia invaded Ukraine in 2022; from 2019 to 2023, investments doubled to $33 billion. This shift contrasts with previous hesitations among venture capitalists regarding defence technology investments.
Anduril’s Expansion and Military Contracts
According to FT, Palmer Luckey founded Anduril in 2017, after selling his Oculus virtual reality company to Facebook for $2 billion. The company has obtained large contracts with the US and UK forces. In 2022, the US Special Operations Command awarded the business a $1 billion contract for anti-drone technology, and it just secured a large US Air Force contract for collaborative combat aircraft, outbidding traditional defense heavyweights like Lockheed Martin and Boeing.
Addressing Defence Shortages with Innovative Production
Anduril aims to discuss perceived deficiencies in U.S. defence capabilities by leveraging commercial manufacturing techniques. Instead of complex, bespoke systems, Anduril will focus on creating simplified autonomous weapons, drawing inspiration from tech industry practices used by companies such as Tesla and SpaceX. The company’s Arsenal-1 facility will streamline production by minimizing unnecessary materials and complex processes.
