Defense technology company Shield AI has successfully raised its valuation to $2.3 billion by raising additional investments as part of its Series E fundraising round.
The company has raised approximately $165 million, including $90 million in equity and $75 million in debt.
After the latest funding, Shield AI has joined Palantir, SpaceX and Anduril as the multi-billion dollar defense tech start-ups for the past two decades.
The Series E fundraising round was led by Doug Philippone of Snowpoint Ventures, who has also been Palantir’s global defense leader since 2008.
Other participants included Disruptive, Shield AI’s Series D lead, Riot Ventures, and Homebrew, the first round of Shield AI.
The company’s previous lead investors were SVB Capital, Point72, Breyer Capital and Andreesen Horowitz.
The proceeds from the funding round will be used to advance the development of Shield AI’s Hivemind software, an AI pilot for commercial and military aircraft.
Shield AI’s Hivemind software allows the aircrew to perform a range of missions, including penetrating air defense systems, room clearance, and dogfights with F-16 aircraft.
Hivemind also enables full autonomy on aircraft, designed to work on the edge, in high threat and disconnected from cloud, GPS and communications-degraded environments.
Shield AI co-founder and CEO Ryan Tseng said, “Russia and China are interfering with GPS and communications.
“US and allied forces need swarms of resilient systems flown by AI pilots to operate in these negated environments. We call it cheap, distributed strategic deterrence.
“Scattered swarms are also more survivable than traditional strategic assets like an aircraft carrier (which is a precious, centralized strategic deterrent).”
The company’s hardware products include a small unmanned aerial vehicle system (sUAS), Nova; and the medium vertical take-off and landing (VTOL) UAS, the V-BAT.
Nova has already integrated Hivemind on board and has also been deployed in combat since 2018.
Shield AI now plans to integrate the technology with V-BAT unmanned aerial vehicles to further enhance its capabilities.