Austin-based defense startup Saronic has secured $600 million in Series C funding to establish an autonomous ship factory known as “Port Alpha,” as announced by the company yesterday. This investment has resulted in a fourfold increase in its valuation, now reaching $4 billion, compared to the previous funding round.
The funding round was led by investor Elad Gil, with participation from General Catalyst and existing investors including Andreessen Horowitz, 8VC, and Caffeinated Capital.
Following this, Saronic is set to become the second or possibly third most valuable defense technology startup in the United States. In comparison, Anduril’s recent funding round valued it at $14 billion. Meanwhile, Shield AI is reportedly negotiating for a $5 billion valuation in a new funding round, and Anduril is also in discussions to potentially double its valuation to $28 billion.
Saronic is not alone in its manufacturing aspirations within the defense technology sector. Anduril, for example, recently announced plans to construct a billion-dollar megafactory in Ohio.
A spokesperson for Saronic confirmed to TechCrunch that the company is actively searching for a suitable location for Port Alpha. Saronic has dubbed the facility the ‘shipyard of the future,’ and operations are expected to commence within five years, according to co-founder and CEO Dino Mavrookas.
The company has already developed three models of autonomous surface vessels (ASVs) that measure up to 24 feet in length, approximately half the size of a modern lifeboat. Additionally, Saronic plans to produce larger unmanned ships, aiming to enhance the U.S. shipbuilding capacity relative to China.
The trend toward unmanned ships in naval warfare has gained traction, partly due to Ukraine’s effective use of drone ships in successfully challenging the Russian Navy in Crimea, despite having minimal conventional naval forces of its own.
Saronic’s total funding now amounts to nearly $850 million. Mavrookas revealed on CNBC that the increase in valuation is attributed to the company’s rapid development of new vessels and software.
This latest funding round for Saronic is indicative of the continued surge in defense tech funding in Silicon Valley, propelled by substantial funding rounds reminiscent of Saronic’s recent success.