Castelion, a defense technology startup founded by former SpaceX executives, has raised a $1 billion Series C at a $13 billion valuation. Andreessen Horowitz, Carlyle, and JPMorgan Chase co-led the financing, which will support increased production of the company’s hypersonic missile systems.
Founded in 2022, the Torrance, California-based company develops hypersonic weapons with a focus on faster and lower-cost manufacturing than traditional defense contractors. Castelion has secured more than $500 million in U.S. military contracts since its launch.
Castelion Plans to Expand Blackbeard Missile Production
The company will use the new capital to increase production of its Blackbeard missiles and other hypersonic weapons at its manufacturing facility in New Mexico.
Hypersonic missiles travel at speeds above Mach 5. The Pentagon has been seeking to increase procurement of these systems as U.S. inventories have remained behind China’s, according to the supplied report.
Castelion is attempting to address that gap by using manufacturing processes designed to produce weapons faster than established defense contractors.
The company previously raised a $350 million Series B as it worked to scale production. Its latest financing also included participation from existing investors Lightspeed, General Catalyst, and Altimeter.
Financing Includes Equity and a Credit Facility
The funding package consists of $800 million in equity and a $250 million revolving credit facility, according to the report. Together, those components total $1.05 billion, although the round was described as a $1 billion Series C.
The credit facility gives Castelion additional financing capacity alongside the new equity investment as it expands manufacturing.
Castelion was founded by former SpaceX executives and has focused on developing defense hardware through higher-volume manufacturing methods. Its latest round values the company at $13 billion less than four years after its founding.
Featured image credits: Pixnio
For more stories like it, click the +Follow button at the top of this page to follow us.