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Anduril are shaping the future of defense, transforming US & allied military capabilities with advanced technology.
Memo Highlights
Confidential
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Highlights
Anduril has been directly disrupting defense primes such as Raytheon ($155B) and Lockheed Martin ($120B). The current defense market is primed for change as contractors are paid more when they fail to meet time and spend requirements. The biggest market change is coming from the new US administration and its direct involvement on defense contracts and focus on efficiency (see Anduril’s view on defense spending). We believe this will massively impact Anduril’s growth. We have also heard Anduril is planning a large round for defense acquisitions, which could significantly increase their valuation. We’ve seen a similar path recently with SpaceX (valuation jumping to $350B) by making costs up to 1000x lower in their field. We believe Anduril will become the largest single vendor for the US military and its allies, displacing incumbents with a radically new approach to building and selling defense products.
Backed by Andreessen and Founders Fund, Anduril is a next generation defense technology company. Competitive advantage in warfare, today and in the future, depends more on superior information and intelligence than on weapons superiority. Anduril brings together the brightest engineering and policy minds from Silicon Valley and Washington DC to address the needs of the modern military.
Analysts estimate Anduril generated $350M - $400M in revenues in 2023 and are projecting $1B revenue in 2024. In 2024, Anduril has won massive contract after contract and shipping multiple next gen systems quickly, including: Air Force selecting Anduril to build Collaborative Combat Combat Aircraft, Ghost Shark submarine for Royal Australian Navy, Pulsar Family of AI-enable electromagnetic warfare systems, and continuing to execute on $1B contract from the Department of Defense for counter-unmanned systems. Andruil is uniquely positioned to deliver best-in-class integrated hardware and software systems that outclass legacy defense contractors’ offerings.
Anduril closed a $1.5B Series F in August 2024. This was led by Founders Fund (SpaceX, Palantir) + Sands Capital (Slack, UiPath). Existing investors including Andreessen Horowitz (Airbnb, Coinbase), Valor Equity Partners (Addepar, BitGo), 8VC (Oculus, Palantir), DFJ Growth (Unity, Coinbase), General Catalyst (Snap, Cadre), Lux Capital (Matterport, Saildrone), Spark Capital (Oculus, Plaid), among others.
$2T Market: Anduril is pointing at the massive $2T/year global military market. The military industrial complex has scarcely changed since the end of the Cold War. Military leaders in the US and its allies are realizing that our adversaries are pulling ahead in emerging fields like AI, computer vision, and robotics. While other Silicon Valley tech companies avoid working on defense, Anduril brings together the best and brightest engineers to work on national security issues using 21st century technology.
Timing: Geopolitical instability has increased demand for Anduril's products. The conflict in Ukraine and the Middle East is a preview of the software-defined conflicts of tomorrow, where parties with an enormous material advantage cannot overcome the advantages of superior information and intelligence. Anduril is focused on building the autonomous systems, sensor-enabled command networks, and machine-speed combat capabilities that are rendering last century’s technology obsolete. The Biden administration submitted a record-breaking $813B defense budget for 2023, and geopolitical trends will likely increase this number even further, regardless of recession or other economic factors. Much of this spending will go to modernization efforts that Anduril is well-positioned to service.
Innovative Technologies: Unlike traditional defense contractors who focus primarily on hardware, Anduril’s software stack, known as Lattice OS, provides an autonomous command and control platform for security critical operations. Recently several branches of the Armed Forces have requested integrations with non-Anduril products. As Anduril builds out these integrations, the high margin Lattice OS platform will increasingly put the company in a strong strategic position, becoming more integral to the operations of the modern military and creating unique expansion opportunities.
Notable Comps: Anduril is more than a surveillance and perception company: it is the next major defense prime contractor. Traditional defense primes are still growing at strong rates after decades of existence. The four major primes, their market caps, and 2024 revenue figures are:
Strong Business Model: Legacy prime contractors use a cost-plus business model which continues to prove grossly inefficient. Similar to SpaceX, Anduril finances its own R&D and sells off-the-shelf resulting in better unit economics and positioning the company well as the government shifts towards fixed-cost contracts. This is not to say that legacy primes can't change, but the infrastructure and expertise required is innate to Anduril and will take years for the incumbents to develop.
Scaling Traction: Anduril is growing quickly. Analysts estimate Anduril generated $350M - $400M in revenues in 2023 and are projecting $1B revenue in 2024. . They continue to execute on their $1B contract from the Department of Defense for counter-unmanned systems.
Use of Funds: The company plans to use the funding from this round to meet the increased demand for its suite of products as well as M&A activity. Recently the company acquired Dive Technologies, a pioneer in autonomous underwater vehicles. Expanding the company's capabilities underwater has opened up several substantial Navy contracts. The brand and sales relationships Anduril has built enable them to acquire startups working on promising technology and rapidly commercialize them, opening up exciting new revenue streams.
Experienced Leadership Team: The leadership team is a mix of former Silicon Valley executives, government officials, lobbyists, and high-ranking military veterans. Twenty percent of the Anduril team are military veterans and use their experience to ensure the products meet the needs of servicemen and women in the field. Palmer Luckey (Founder) previously founded Oculus, acquired by Facebook in 2014 for $3B - here is a great interview with him at Bloomberg Tech. Brian Schimpf (Co-founder/CEO) was previously the Director of Engineering at Palantir ($16B). Trae Stephens (Co-founder/Chairman) is a Partner at Founders Fund and early employee at Palantir. Matt Grimm (Co-founder/COO) was previously Principle at Mithril Capital Management and an early employee at Palantir. And Joseph Chen (Co-founder) was one of the first employees at Oculus.
Tier 1 Investors: The Series F was led by Founders Fund (SpaceX, Palantir) + Sands Capital (Slack, UiPath) with participation from existing investors including Andreessen Horowitz (Airbnb, Coinbase), Valor Equity Partners (Addepar, BitGo), 8VC (Oculus, Palantir), DFJ Growth (Unity, Coinbase), General Catalyst (Snap, Cadre), Lux Capital (Matterport, Saildrone), Spark Capital (Oculus, Plaid), among others.
The modern battlefield is undergoing a fundamental transformation, creating significant challenges for military forces worldwide. Conventional defense systems face increasing limitations in addressing contemporary threats:
Traditional defense technologies struggle with real-time data processing and integration, creating critical intelligence gaps that compromise situational awareness. Military operations are increasingly threatened by low-cost, widely available drone systems that can bypass conventional defenses, as evidenced by recent conflicts6. Legacy defense systems typically require extensive human oversight, limiting their effectiveness in fast-paced combat environments and increasing operator risk4. Current military infrastructure faces growing challenges in secure communication across contested environments, with traditional hub-and-spoke network models presenting single points of failure4.
The defense sector urgently needs integrated autonomous solutions that can adapt to rapidly evolving threats while reducing human risk exposure and enhancing operational capabilities across domains.
Anduril has developed a comprehensive approach to these defense challenges through an integrated ecosystem of autonomous systems and software:
Anduril offers a family of autonomous systems powered by their proprietary Lattice operating system, providing integrated, persistent awareness and security across land, sea, and air domains1. The company's Lattice OS serves as an open operating system for defense that delivers autonomy to challenging military missions, enabling operators to understand, decide, and act with machine speed and unparalleled confidence 4. Their solutions transform raw data into actionable intelligence, creating a shared real-time understanding of the environment by autonomously fusing and parsing data from thousands of sensors into an intelligent common operating picture 4.
By streamlining the complexity of decision-making through deep learning models, Anduril presents operators with recommended action points rather than overwhelming information noise, allowing for rapid command and control over both manned and unmanned assets across multiple domains 4.
Anduril has developed a diverse product portfolio that spans multiple defense domains:
The foundation of Anduril's technology stack is Lattice OS, an open operating system for defense that integrates data from numerous sources into a unified operating picture accessible through an intuitive user interface 4. The system features:
Anduril has developed specialized autonomous platforms across multiple domains:
Anduril is positioned to capitalize on substantial growth in defense technology markets:
The autonomous military weapons market is experiencing rapid expansion, projected to grow from $16.08 billion in 2024 to $17.71 billion in 2025 at a CAGR of 10.2% 7. This market is expected to reach $26.17 billion by 2029, maintaining a robust CAGR of 10.3%7. The broader Military Artificial Intelligence market shows even stronger growth potential, with projections to surge from $13.24 billion in 2024 to $35.54 billion by 2031 at a CAGR of 14.49% 8.
The ISR drone segment, a key focus area for Anduril, is estimated at $669 million in 2025 and projected to reach $1,578.5 million by 2033, growing at a CAGR of 9.7% 9. North America and Europe hold significant market shares in these sectors, with the Asia Pacific region showing promising growth potential due to increasing investments in defense modernization 9.
These market trends create a substantial addressable market for Anduril's diverse product portfolio across multiple defense applications and geographies.
Anduril has demonstrated exceptional commercial momentum and investor confidence:
Anduril has secured significant contracts with defense organizations:
This impressive traction demonstrates strong product-market fit and the company's ability to deliver mission-critical systems to demanding defense customers.
Anduril operates in a competitive landscape with various players focusing on different aspects of defense technology:
The company competes with established defense contractors as well as newer technology-focused entrants. Among its key competitors is Shield AI, which develops similar autonomous systems for military applications 10. Other notable competitors include Accrete (analytical AI agents for government sectors), Reflection AI (autonomous systems research), Picogrid (defense connectivity platforms), Archangel Imaging (AI systems for defense and security), and Palantir (data analytics for defense) 10.
Anduril's competitive advantage stems from its integrated approach combining hardware, software, and AI capabilities under a single platform, its focus on autonomous systems across multiple domains, and its modern technology stack purpose-built for defense applications.
Anduril brings together exceptional talent from both the technology and defense sectors:
The company is led by CEO Brian Schimpf, who guides the company's strategic direction and growth initiatives 5. Founder Palmer Luckey, previously known for creating Oculus VR (acquired by Facebook), brings entrepreneurial vision and technical expertise to the company 6.
Anduril's broader team philosophy centers on bringing together "the brightest minds and best-in-class talent together with veterans who have lived the problems of our warfighters," creating a powerful combination of technical innovation and operational experience1. This interdisciplinary approach enables the company to develop solutions that address real-world military challenges while leveraging cutting-edge technology.
Several converging factors make this an opportune time for investment in defense technology:
Heightened defense budgets and investments in AI technologies are being driven by escalating geopolitical tensions and evolving military strategies 8. Recent conflicts have highlighted the limitations of traditional defense systems and the growing importance of autonomous capabilities, creating urgency for military modernization programs.
Advancements in AI and machine learning have reached a critical threshold, enabling revolutionary improvements in military capabilities including real-time threat detection, predictive analytics, and strategic decision-making 8. Computing power, sensor technology, and algorithmic capabilities have matured sufficiently to support reliable autonomous systems in critical defense applications.
The expanded use of drones and loitering munitions on battlefields in recent years has created an immediate need for counter-drone systems and other autonomous defense capabilities 6. Military organizations worldwide are actively seeking to learn from recent conflicts and adapt their capabilities accordingly.
All relevant market segments-autonomous military weapons, military AI, and ISR drones-are showing strong growth trajectories, with CAGRs ranging from 9.7% to 14.49% 7 8 9. North America, particularly the United States, continues to lead in defense technology adoption, creating a substantial immediate market for Anduril's solutions 8.
Round
$40/share @$28B
Investors
Founders Fund, Andreessen Horowitz, Valor Equity Partners , 8VC , DFJ Growth, General Catalyst, Lux, Spark
Date
26 May
Questions
team@joinbeyond.coMemo
Anduril has been directly disrupting defense primes such as Raytheon ($155B) and Lockheed Martin ($120B). The current defense market is primed for change as contractors are paid more when they fail to meet time and spend requirements. The biggest market change is coming from the new US administration and its direct involvement on defense contracts and focus on efficiency (see Anduril’s view on defense spending). We believe this will massively impact Anduril’s growth. We have also heard Anduril is planning a large round for defense acquisitions, which could significantly increase their valuation. We’ve seen a similar path recently with SpaceX (valuation jumping to $350B) by making costs up to 1000x lower in their field. We believe Anduril will become the largest single vendor for the US military and its allies, displacing incumbents with a radically new approach to building and selling defense products.
Backed by Andreessen and Founders Fund, Anduril is a next generation defense technology company. Competitive advantage in warfare, today and in the future, depends more on superior information and intelligence than on weapons superiority. Anduril brings together the brightest engineering and policy minds from Silicon Valley and Washington DC to address the needs of the modern military.
Analysts estimate Anduril generated $350M - $400M in revenues in 2023 and are projecting $1B revenue in 2024. In 2024, Anduril has won massive contract after contract and shipping multiple next gen systems quickly, including: Air Force selecting Anduril to build Collaborative Combat Combat Aircraft, Ghost Shark submarine for Royal Australian Navy, Pulsar Family of AI-enable electromagnetic warfare systems, and continuing to execute on $1B contract from the Department of Defense for counter-unmanned systems. Andruil is uniquely positioned to deliver best-in-class integrated hardware and software systems that outclass legacy defense contractors’ offerings.
Anduril closed a $1.5B Series F in August 2024. This was led by Founders Fund (SpaceX, Palantir) + Sands Capital (Slack, UiPath). Existing investors including Andreessen Horowitz (Airbnb, Coinbase), Valor Equity Partners (Addepar, BitGo), 8VC (Oculus, Palantir), DFJ Growth (Unity, Coinbase), General Catalyst (Snap, Cadre), Lux Capital (Matterport, Saildrone), Spark Capital (Oculus, Plaid), among others.
$2T Market: Anduril is pointing at the massive $2T/year global military market. The military industrial complex has scarcely changed since the end of the Cold War. Military leaders in the US and its allies are realizing that our adversaries are pulling ahead in emerging fields like AI, computer vision, and robotics. While other Silicon Valley tech companies avoid working on defense, Anduril brings together the best and brightest engineers to work on national security issues using 21st century technology.
Timing: Geopolitical instability has increased demand for Anduril's products. The conflict in Ukraine and the Middle East is a preview of the software-defined conflicts of tomorrow, where parties with an enormous material advantage cannot overcome the advantages of superior information and intelligence. Anduril is focused on building the autonomous systems, sensor-enabled command networks, and machine-speed combat capabilities that are rendering last century’s technology obsolete. The Biden administration submitted a record-breaking $813B defense budget for 2023, and geopolitical trends will likely increase this number even further, regardless of recession or other economic factors. Much of this spending will go to modernization efforts that Anduril is well-positioned to service.
Innovative Technologies: Unlike traditional defense contractors who focus primarily on hardware, Anduril’s software stack, known as Lattice OS, provides an autonomous command and control platform for security critical operations. Recently several branches of the Armed Forces have requested integrations with non-Anduril products. As Anduril builds out these integrations, the high margin Lattice OS platform will increasingly put the company in a strong strategic position, becoming more integral to the operations of the modern military and creating unique expansion opportunities.
Notable Comps: Anduril is more than a surveillance and perception company: it is the next major defense prime contractor. Traditional defense primes are still growing at strong rates after decades of existence. The four major primes, their market caps, and 2024 revenue figures are:
Strong Business Model: Legacy prime contractors use a cost-plus business model which continues to prove grossly inefficient. Similar to SpaceX, Anduril finances its own R&D and sells off-the-shelf resulting in better unit economics and positioning the company well as the government shifts towards fixed-cost contracts. This is not to say that legacy primes can't change, but the infrastructure and expertise required is innate to Anduril and will take years for the incumbents to develop.
Scaling Traction: Anduril is growing quickly. Analysts estimate Anduril generated $350M - $400M in revenues in 2023 and are projecting $1B revenue in 2024. . They continue to execute on their $1B contract from the Department of Defense for counter-unmanned systems.
Use of Funds: The company plans to use the funding from this round to meet the increased demand for its suite of products as well as M&A activity. Recently the company acquired Dive Technologies, a pioneer in autonomous underwater vehicles. Expanding the company's capabilities underwater has opened up several substantial Navy contracts. The brand and sales relationships Anduril has built enable them to acquire startups working on promising technology and rapidly commercialize them, opening up exciting new revenue streams.
Experienced Leadership Team: The leadership team is a mix of former Silicon Valley executives, government officials, lobbyists, and high-ranking military veterans. Twenty percent of the Anduril team are military veterans and use their experience to ensure the products meet the needs of servicemen and women in the field. Palmer Luckey (Founder) previously founded Oculus, acquired by Facebook in 2014 for $3B - here is a great interview with him at Bloomberg Tech. Brian Schimpf (Co-founder/CEO) was previously the Director of Engineering at Palantir ($16B). Trae Stephens (Co-founder/Chairman) is a Partner at Founders Fund and early employee at Palantir. Matt Grimm (Co-founder/COO) was previously Principle at Mithril Capital Management and an early employee at Palantir. And Joseph Chen (Co-founder) was one of the first employees at Oculus.
Tier 1 Investors: The Series F was led by Founders Fund (SpaceX, Palantir) + Sands Capital (Slack, UiPath) with participation from existing investors including Andreessen Horowitz (Airbnb, Coinbase), Valor Equity Partners (Addepar, BitGo), 8VC (Oculus, Palantir), DFJ Growth (Unity, Coinbase), General Catalyst (Snap, Cadre), Lux Capital (Matterport, Saildrone), Spark Capital (Oculus, Plaid), among others.
The modern battlefield is undergoing a fundamental transformation, creating significant challenges for military forces worldwide. Conventional defense systems face increasing limitations in addressing contemporary threats:
Traditional defense technologies struggle with real-time data processing and integration, creating critical intelligence gaps that compromise situational awareness. Military operations are increasingly threatened by low-cost, widely available drone systems that can bypass conventional defenses, as evidenced by recent conflicts6. Legacy defense systems typically require extensive human oversight, limiting their effectiveness in fast-paced combat environments and increasing operator risk4. Current military infrastructure faces growing challenges in secure communication across contested environments, with traditional hub-and-spoke network models presenting single points of failure4.
The defense sector urgently needs integrated autonomous solutions that can adapt to rapidly evolving threats while reducing human risk exposure and enhancing operational capabilities across domains.
Anduril has developed a comprehensive approach to these defense challenges through an integrated ecosystem of autonomous systems and software:
Anduril offers a family of autonomous systems powered by their proprietary Lattice operating system, providing integrated, persistent awareness and security across land, sea, and air domains1. The company's Lattice OS serves as an open operating system for defense that delivers autonomy to challenging military missions, enabling operators to understand, decide, and act with machine speed and unparalleled confidence 4. Their solutions transform raw data into actionable intelligence, creating a shared real-time understanding of the environment by autonomously fusing and parsing data from thousands of sensors into an intelligent common operating picture 4.
By streamlining the complexity of decision-making through deep learning models, Anduril presents operators with recommended action points rather than overwhelming information noise, allowing for rapid command and control over both manned and unmanned assets across multiple domains 4.
Anduril has developed a diverse product portfolio that spans multiple defense domains:
The foundation of Anduril's technology stack is Lattice OS, an open operating system for defense that integrates data from numerous sources into a unified operating picture accessible through an intuitive user interface 4. The system features:
Anduril has developed specialized autonomous platforms across multiple domains:
Anduril is positioned to capitalize on substantial growth in defense technology markets:
The autonomous military weapons market is experiencing rapid expansion, projected to grow from $16.08 billion in 2024 to $17.71 billion in 2025 at a CAGR of 10.2% 7. This market is expected to reach $26.17 billion by 2029, maintaining a robust CAGR of 10.3%7. The broader Military Artificial Intelligence market shows even stronger growth potential, with projections to surge from $13.24 billion in 2024 to $35.54 billion by 2031 at a CAGR of 14.49% 8.
The ISR drone segment, a key focus area for Anduril, is estimated at $669 million in 2025 and projected to reach $1,578.5 million by 2033, growing at a CAGR of 9.7% 9. North America and Europe hold significant market shares in these sectors, with the Asia Pacific region showing promising growth potential due to increasing investments in defense modernization 9.
These market trends create a substantial addressable market for Anduril's diverse product portfolio across multiple defense applications and geographies.
Anduril has demonstrated exceptional commercial momentum and investor confidence:
Anduril has secured significant contracts with defense organizations:
This impressive traction demonstrates strong product-market fit and the company's ability to deliver mission-critical systems to demanding defense customers.
Anduril operates in a competitive landscape with various players focusing on different aspects of defense technology:
The company competes with established defense contractors as well as newer technology-focused entrants. Among its key competitors is Shield AI, which develops similar autonomous systems for military applications 10. Other notable competitors include Accrete (analytical AI agents for government sectors), Reflection AI (autonomous systems research), Picogrid (defense connectivity platforms), Archangel Imaging (AI systems for defense and security), and Palantir (data analytics for defense) 10.
Anduril's competitive advantage stems from its integrated approach combining hardware, software, and AI capabilities under a single platform, its focus on autonomous systems across multiple domains, and its modern technology stack purpose-built for defense applications.
Anduril brings together exceptional talent from both the technology and defense sectors:
The company is led by CEO Brian Schimpf, who guides the company's strategic direction and growth initiatives 5. Founder Palmer Luckey, previously known for creating Oculus VR (acquired by Facebook), brings entrepreneurial vision and technical expertise to the company 6.
Anduril's broader team philosophy centers on bringing together "the brightest minds and best-in-class talent together with veterans who have lived the problems of our warfighters," creating a powerful combination of technical innovation and operational experience1. This interdisciplinary approach enables the company to develop solutions that address real-world military challenges while leveraging cutting-edge technology.
Several converging factors make this an opportune time for investment in defense technology:
Heightened defense budgets and investments in AI technologies are being driven by escalating geopolitical tensions and evolving military strategies 8. Recent conflicts have highlighted the limitations of traditional defense systems and the growing importance of autonomous capabilities, creating urgency for military modernization programs.
Advancements in AI and machine learning have reached a critical threshold, enabling revolutionary improvements in military capabilities including real-time threat detection, predictive analytics, and strategic decision-making 8. Computing power, sensor technology, and algorithmic capabilities have matured sufficiently to support reliable autonomous systems in critical defense applications.
The expanded use of drones and loitering munitions on battlefields in recent years has created an immediate need for counter-drone systems and other autonomous defense capabilities 6. Military organizations worldwide are actively seeking to learn from recent conflicts and adapt their capabilities accordingly.
All relevant market segments-autonomous military weapons, military AI, and ISR drones-are showing strong growth trajectories, with CAGRs ranging from 9.7% to 14.49% 7 8 9. North America, particularly the United States, continues to lead in defense technology adoption, creating a substantial immediate market for Anduril's solutions 8.