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Shield AI, valued at $2.7 billion, raises $200 million to develop its military autonomous flying technology

Shield AI has secured $200 million in fresh funding as it seeks to expand its autonomous aerial systems for the U.S. military and its international partners. Established in 2015, the startup is now valued at $2.7 billion. This recent funding round was jointly led by U.S. Innovation Technology Fund (USIT) and Riot Ventures, both of which were previous investors in Shield AI. Additional contributors include existing backers Disruptive and Snowpoint, along with a new investor, ARK Invest, the investment management firm founded by Cathie Wood.

USIT, led by billionaire Thomas Tull, was the sole provider of an earlier $60 million injection of funding into Shield AI's Series E. This substantial Series F round underscores the company's impressive fundraising history. The Series E raised a total of $225 million, and the Series D secured between $210 million and $300 million.

This also underscores the often capital-intensive nature of startups in the defense sector, even those that offer systems at a lower cost than traditional competitors, as is the case with Shield AI.

The company manufactures both hardware and software designed to convert drones and aircraft into autonomous systems capable of executing missions in challenging environments. The cornerstone of their product line is Hivemind, an AI pilot software that enables drones and aircraft to operate autonomously, even without GPS assistance. Shield AI has also introduced a drone swarming capability known as V-Bat Teams, which allows a single human operator to command a minimum of four V-Bat drones. (These drones, capable of vertical take-off and landing, were developed by Martin UAV, a company acquired by Shield AI in 2021.)