SCOOP: San Diego Drone Startup Shield AI Raising $150M, Valued at $2.5 Billion
The autonomous drone company is said to be raising $150 million in the deal
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San Diego-based autonomous drone company Shield AI is in talks to raise $150 million in fresh capital from investors, valuing the company at $2.5 billion.
It is the fourth venture-backed defense technology company to achieve a multi-billion valuation over the past 20 years.
Andreessen Horowitz, Breyer Capital, Homebrew, and Silicon Valley Bank are among ShieldAI’s existing investors. Snowpoint Ventures led a $165 million fundraising round in June 2022 that valued Shield AI at $2.3 billion.
It develops software called Hivemind, which acts as an autonomous pilot for military drones and manned aircraft.
The company has put a great deal of AI into quadcopter-style drones which has been used to carry out real-world combat missions.
It contracts for the Department of Defense and the partnered with the US Air Force to help them operate drones autonomously in GPS-denied environments.
Launched in 2015, Shield AI was founded by two brothers Ryan and Brandon Tseng, and Andrew Reiter, a technical fellow. It employs 600-plus staffers and has raised more than $225 million in funding to date.
The company, headquartered in Downtown San Diego, also has offices in Washington D.C., Dallas and Abu Dhabi. Its manufacturing facility is in San Diego.
A leader in the defense tech space, Shield AI continues to draw more attention and venture capital interest globally.
“The fundraising climate has never been more favorable for defense technology companies,” said Ryan Tseng in a TechCrunch interview.
“Supporting defense was taboo in many circles. We were rejected by many early investors because defense was considered too controversial. Today, there is growing recognition that investment in defense contributes to security, stability and peace, all of which are foundational to a flourishing society.”