Castelion, a missile startup founded by former SpaceX executives, has raised a $1 billion Series C at a $13 billion valuation. The round was co-led by Andreessen Horowitz, Carlyle, and JPMorgan Chase.
Founded in 2022, Castelion set out to manufacture hypersonic weapon systems at a lower cost and at faster speeds than traditional defense primes. Since then, the startup has secured more than $500 million in U.S. military contracts.
The funding for the startup is timely. The Pentagon has been looking to procure more of these weapons, since the U.S.’s stockpile of hypersonic missiles capable of traveling at speeds above Mach 5 hasn’t kept pace with China’s. Castelion is betting it can help close the gap with its faster manufacturing process.
The Torrance, California-based startup will use the fresh capital to produce its Blackbeard missiles, named after a fierce English pirate, and other hypersonic weapons in its New Mexico production facility.
The funding round, which included participation from existing backers, including Lightspeed, General Catalyst, and Altimeter, comprised $800 million in equity and a $250 million revolving credit facility.