Anduril’s USD 5 Billion Megaround Resets Expectations for Defense Tech Funding
Defense tech unicorn Anduril Industries has raised another USD 5 billion (approx. RM23 billion) in fresh capital, instantly becoming the standout deal in a week dominated by large rounds for physical-world applications. The Series H financing, led by Andreessen Horowitz and Thrive Capital, values the company at USD 61 billion (approx. RM281 billion), double the USD 30.5 billion (approx. RM141 billion) mark it received less than a year earlier. Anduril’s total funding now stands at USD 11.4 billion (approx. RM52.5 billion), cementing its status as a flagship startup unicorn in defense tech funding and a reference point for late-stage venture appetite. The sheer scale of the round underscores how far investor sentiment has shifted: defense, once a niche and controversial segment, is now firmly in the mainstream of venture capital trends and is attracting marquee generalist investors rather than only specialist defense funds.
From Data Power to Robotics: Startup Unicorn Raises Move Into the Physical World
Anduril’s financing topped a broader lineup of large deals aimed at physical-world applications rather than purely digital software. VoltaGrid secured USD 775 million (approx. RM3.57 billion) in capital funding as part of a USD 1 billion (approx. RM4.6 billion) strategic investment to provide mobile natural gas generators for data centers, microgrids and industrial sites, showing how the AI boom is driving infrastructure demand. Mind Robotics, an AI-enabled industrial robotics platform spun out of an electric vehicle manufacturer, raised USD 400 million (approx. RM1.84 billion), bringing its total funding to more than USD 1 billion (approx. RM4.6 billion). Space tech player Cowboy Space closed a USD 275 million (approx. RM1.27 billion) Series B at a USD 2 billion (approx. RM9.2 billion) valuation, building rockets and satellite infrastructure to power AI compute in orbit. Together, these startup unicorn raises show investors are backing capital-intensive hardware and infrastructure as essential counterparts to software.
Defense Tech Goes Mainstream as Investors Chase Physical-World Applications
The surge in defense tech funding is not limited to Anduril. Firestorm Labs, which builds modular drones and expeditionary manufacturing systems designed to operate near the battlefield, recently closed an USD 82 million (approx. RM378 million) Series B. Its containerized “xCell” platforms can produce drones and replacement parts close to conflict zones, reflecting how militaries are rethinking logistics and supply chains. More broadly, venture investment into military, national security and law enforcement categories has already reached USD 13.6 billion (approx. RM62.7 billion) this year, more than 1.5 times last year’s annual total. Major investors now view defense startups as central to future security and industrial capabilities, not outliers. With Anduril’s megadeal led by prominent Silicon Valley firms, defense has moved from the edges of venture capital trends into the core, signaling that scalable physical-world applications are now among the most sought-after opportunities.
Beyond Defense: Legal Tech and Cleantech Show the Breadth of Real-World Innovation
While defense tech funding is grabbing headlines, other sectors tackling concrete, offline problems are also drawing serious capital. Manifest OS, which is building an AI-native operating system and brand for law firms, raised USD 60 million (approx. RM276 million) in Series A funding at a USD 750 million (approx. RM3.46 billion) valuation. Rather than selling software into traditional billable-hour firms, it targets outcome-based AI-native practices and centralises back-office operations, reshaping how legal services are delivered. In cleantech, French startup ROSI secured EUR 20 million (about USD 23 million, approx. RM106 million) to scale industrial recycling of defunct solar panels, addressing a looming waste and resource-recovery challenge. These deals show that venture capital is spreading across a diverse set of physical world applications—from legal infrastructure to renewable energy hardware—indicating that investors increasingly seek startups that bridge advanced software with tangible, real-world impact.