Castelion Reaches $13 Billion Valuation for Mass Production of Hypersonic Missiles
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Castelion, a rocket startup founded by former SpaceX executives, has closed a $1 billion Series C funding round at a valuation of $13 billion, TechCrunch reports. Founded in 2022, the young company has set its sights on producing hypersonic weapons systems faster and more cost-effectively than traditional defense contractors.
US Looks to Close Gap with China on Hypersonic Missiles
The round was co-led by Andreessen Horowitz, Carlyle, and JPMorgan Chase. Since its founding, the startup has already secured contracts with the US military worth more than $500 million. The Torrance, California-based scale-up aims to close a gap in American defense strategy with its accelerated manufacturing process.
The timing of the funding is strategically significant. The Pentagon is looking for ways to procure more of these weapons systems, as the US arsenal of hypersonic missiles — capable of reaching speeds above Mach 5 — has not kept pace with China. Castelion is betting on closing that gap with its faster production method.
Castelion Eyes Mass Production of Hypersonic Weapons
The fresh capital will flow into the production of Blackbeard missiles and other hypersonic weapons at the company’s facility in New Mexico. The plant is intended to enable mass production of these highly complex weapons systems.
The funding round comprised $800 million in equity and a $250 million revolving credit facility. In addition to the lead investors, existing backers including Lightspeed, General Catalyst, and Altimeter also participated in the round. The massive capitalization positions Castelion as one of the highest-valued defense tech players in Silicon Valley.
