Deal Dive: AI’s not the only sector dodging the funding slowdown

Published on November 6, 2023

In a challenging fundraising environment, AI startups have remained a prominent focus for investors, but another sector drawing unwavering attention is defense tech. This trend was further highlighted when Shield AI, an autonomous drone and aircraft startup based in San Diego, secured a $200 million Series F round. The funding was spearheaded by the US Innovative Technology Fund, with significant contributions from Snowpoint Ventures and Riot Ventures, among others, bringing the startup's valuation to $2.7 billion. Interestingly, such "mega-rounds" surpassing $100 million have become rare. Data from PitchBook indicates a steep decline in such rounds in 2023 compared to previous years. However, Shield AI's success in this stringent climate is attributed to its impressive growth metrics, with a 90% year-over-year revenue increase and a projection to become profitable by 2025. The investment in Shield AI underscores the rising interest and confidence investors have in the defense tech sector.

Read More: https://techcrunch.com/2023/11/04/deal-dive-defense-tech-funding/

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