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Anduril

Defense

Performance

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Anduril are shaping the future of defense, transforming US & allied military capabilities with advanced technology.

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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.

Deal

  • Structure: Investing into a 2nd layer vehicle (US based), 1st layer is large reputable US fund
  • Type: Preferred shares
  • Price: ~$40/share (~$28B valuation - current Series G price)
  • Fees:
    • 22.5% access fee (underlying fund charge)
    • 1%/yr mgmt fee for 10yrs
    • 15% carry (shared with underlying fund)



Latest Updates:


Videos

Introduction

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. 

Here's why we're excited to invest:

$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. 

Problem

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.

Solution

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.

Product

Anduril has developed a diverse product portfolio that spans multiple defense domains:

Lattice Operating System

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:

  • Real-time understanding through autonomous fusion of data from thousands of sensors and sources into an intelligent common operating picture 4
  • Automated decision advantage using deep learning models to present operators with recommended decision points 4
  • Command and control capabilities enabling real-time direction of manned and unmanned assets across multiple domains 4
  • Intelligent and secure mesh network designed for contested areas, eliminating single points of failure 4
  • Open architecture with proven integrations across third-party, legacy, and autonomous systems 4

Building better land systems: Software-defined, hardware-enabled | Anduril

Autonomous Systems

Anduril has developed specialized autonomous platforms across multiple domains:

  • Air Systems: Autonomous air systems for intelligence, surveillance, and reconnaissance missions, all tasked, connected, and controlled by Lattice1
  • Maritime Systems: Autonomous underwater vehicles (AUVs) designed for littoral and deep-water survey, inspection, and ISR operations1
  • Rocket Motors: Full-service, high-volume supply of conventional and next-generation rocket motors1
  • Counter-UAS: The Roadrunner interceptor system for countering hostile drones, complemented by the portable Pulsar electronic-warfare capability that can jam enemy systems 6

Anduril unveils 'Copperhead' underwater drone - Breaking Defense

Opportunity

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.

Traction

Anduril has demonstrated exceptional commercial momentum and investor confidence:

Customer Adoption and Contracts

Anduril has secured significant contracts with defense organizations:

  • A $250 million Pentagon contract for their Roadrunner drone defense system, including 500 Roadrunner interceptors and the Pulsar electronic-warfare capability 6
  • A 10-year, indefinite-delivery, indefinite-quantity contract worth up to $1 billion with U.S. Special Operations Command for counter-drone hardware and software 6
  • A $100 million contract with the Royal Australian Navy to develop autonomous underwater vehicles 5
  • Active deployment with the US Marine Corps, US Air Force, UK Royal Marines, and Customs and Border Protection 4

This impressive traction demonstrates strong product-market fit and the company's ability to deliver mission-critical systems to demanding defense customers.

Competition

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.

Team

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.

How Brian Schimpf Became Founder-CEO of Defense Tech Startup Anduril -  Business Insider

Market Overview & Why Now

Several converging factors make this an opportune time for investment in defense technology:

Geopolitical Dynamics

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.

Technological Readiness

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.

Battlefield Evolution

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.

Market Growth

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.

Citations:

  1. https://www.anduril.com
  2. https://www.anduril.com/
  3. https://www.anduril.com
  4. https://sldinfo.com/wp-content/uploads/2022/10/2022-slick-Lattice-OS-AUS.pdf
  5. https://www.ipo.club/blog/anduril-current-funding-round-july-2024
  6. https://www.defensenews.com/unmanned/2024/10/08/anduril-lands-250-million-pentagon-contract-for-drone-defense-system/
  7. https://www.thebusinessresearchcompany.com/report/autonomous-military-weapons-global-market-report
  8. https://finance.yahoo.com/news/military-artificial-intelligence-ai-market-151600832.html
  9. https://www.datainsightsmarket.com/reports/isr-drone-608201
  10. https://www.cbinsights.com/company/shield-ai/alternatives-competitors
  11. https://www.cnbc.com/2025/02/07/anduril-in-talks-to-raise-money-at-28-billion-valuation.html
  12. https://www.macrotrends.net/stocks/charts/AVAV/aerovironment/revenue
  13. https://en.wikipedia.org/wiki/Anduril_Industries
  14. https://www2.deloitte.com/us/en/insights/industry/aerospace-defense/aerospace-and-defense-industry-outlook.html
  15. https://sacra.com/c/anduril/
  16. https://www.linkedin.com/company/andurilindustries
  17. https://www.prnewswire.com/news-releases/defense-it-spending-market-to-grow-by-usd-26-01-billion-2025-2029-driven-by-autonomous-systems-development-ais-impact-on-market-trends---technavio-302355358.html
  18. https://sacra.com/research/anduril-at-1b/
  19. https://www.globaldata.com/company-profile/anduril-industries-inc/
  20. https://www.businessresearchinsights.com/market-reports/defense-robotics-market-102791
  21. https://www.generalist.com/briefing/anduril
  22. https://www.linkedin.com/pulse/defense-industry-outlook-market-forecast-2025-b-s-patil-3vanf
  23. https://orangeslices.ai/anduril-announces-key-promotions-brose-steckman-kaplan-larson/
  24. https://www.forbes.com/companies/anduril-industries/
  25. https://defense-update.com/20231222_lattice-ai.html
  26. https://golden.com/query/list-of-funding-rounds-for-anduril-industries-YGAA
  27. https://www.govconwire.com/2025/02/anduril-99-million-air-force-contract-thunderdome-project/
  28. https://theorg.com/org/anduril-industries/teams/leadership-team-1
  29. https://www.youtube.com/watch?v=_Qgf7Iy1I_M
  30. https://www.anduril.com/article/anduril-s-lattice-a-trusted-dual-use-commercial-and-military-platform-for-public-safety-security/
  31. https://research.contrary.com/company/anduril
  32. https://breakingdefense.com/2025/02/microsoft-announces-plan-to-slide-22-billion-ivas-contract-over-to-anduril/
  33. https://www.linkedin.com/posts/matthewkaplan617_since-joining-anduril-in-2020-ive-been-activity-7288216696262205441-vjcb
  34. https://www.wsj.com/video/inside-anduril-the-defense-startup-thats-run-like-a-tech-company/C92D1902-53B6-4F9D-AA84-45D9FA868C52
  35. https://www.cbinsights.com/company/anduril/alternatives-competitors
  36. https://www.precedenceresearch.com/robotic-warfare-market
  37. https://www.imarcgroup.com/anti-drone-market
  38. https://www.mordorintelligence.com/industry-reports/artificial-intelligence-and-analytics-in-defense-market
  39. https://www.imarcgroup.com/airborne-isr-market
  40. https://rocketreach.co/anduril-industries-competitors_b44d8d5dfd1baa43
  41. https://www.globenewswire.com/news-release/2025/01/09/3006879/0/en/AI-and-Robotics-in-Aerospace-and-Defense-Market-to-surpass-USD-67-9-billion-by-2034-Says-Global-Market-Insights-inc.html
  42. https://www.knowledge-sourcing.com/report/global-anti-drone-market
  43. https://www.gminsights.com/industry-analysis/ai-and-analytics-in-military-and-defense-market
  44. https://market.us/report/drone-warfare-market/
  45. https://www.reddit.com/r/stocks/comments/18b174r/companies_similar_to_palantir_and_anduril/
  46. https://www.marketsandmarkets.com/Market-Reports/defense-platforms-systems-outlook-184807569.html
  47. https://craft.co/anduril/executives
  48. https://www.anduril.com/profile/babak-siavoshy/
  49. https://www.securities.io/drones-stocks/
  50. https://www.youtube.com/watch?v=aKUmvIVTyz8
  51. https://www.defensedaily.com/shield-ai-touts-collaborative-flights-of-two-ai-piloted-unmanned-jets/advanced-transformational-technology/
  52. https://research.contrary.com/company/shield-ai
  53. https://www.owler.com/company/anduril
  54. https://techcrunch.com/2025/02/07/anduril-in-talks-to-raise-up-to-2-5b-at-28b-valuation/
  55. https://techstartups.com/2025/01/17/silicon-valley-defense-startup-shield-ai-hits-5b-valuation-as-it-eyes-200m-in-funding-from-palantir-others/
  56. https://companiesmarketcap.com/aerovironment/revenue/
  57. https://www.macrotrends.net/stocks/charts/KTOS/kratos-defense-security-solutions/revenue
  58. https://shield.ai/shield-ai-raises-240m-at-5-3b-valuation-to-scale-hivemind-enterprise-an-ai-powered-autonomy-developer-platform/
  59. https://investor.avinc.com/news-releases/news-release-details/aerovironment-announces-fiscal-2024-fourth-quarter-and-fiscal
  60. https://ir.kratosdefense.com/news-releases/news-release-details/kratos-reports-fourth-quarter-and-full-year-2023-financial
  61. https://www.prnewswire.com/news-releases/shield-ai-raises-240m-at-5-3b-valuation-to-scale-hivemind-enterprise-an-ai-powered-autonomy-developer-platform-302393843.html
  62. https://investor.avinc.com/news-releases/news-release-details/aerovironment-announces-fiscal-2025-second-quarter-results
  63. https://ir.kratosdefense.com/node/30641/pdf
  64. https://techcrunch.com/2025/03/06/shield-ai-raises-240-million-at-a-5-3-billion-valuation-to-commercialize-its-ai-drone-tech/
  65. https://www.precedenceresearch.com/anti-drone-market
  66. https://www.anduril.com/leadership/
  67. https://en.wikipedia.org/wiki/Anduril_Industries
  68. https://www.anduril.com/profile/brian-schimpf/
  69. https://rocketreach.co/anduril-industries-management_b44d8d5dfd1baa43
  70. https://www.linkedin.com/in/bschimpf
  71. https://www.washingtontechnology.com/companies/2024/12/are-ai-defense-firms-about-eat-pentagon/401700/
  72. https://www.theinformation.com/articles/anduril-doubles-revenue-and-plans-100-million-employee-tender
  73. https://asiatechdaily.com/anduril-industries-seeks-2-5b-investment-aiming-for-28b-valuation/
  74. https://shield.ai/shield-ai-raises-200m-reaching-2-7b-valuation/
  75. https://finance.yahoo.com/news/kratos-defense-security-solutions-full-133057361.html

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Memo

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.

Deal

  • Structure: Investing into a 2nd layer vehicle (US based), 1st layer is large reputable US fund
  • Type: Preferred shares
  • Price: ~$40/share (~$28B valuation - current Series G price)
  • Fees:
    • 22.5% access fee (underlying fund charge)
    • 1%/yr mgmt fee for 10yrs
    • 15% carry (shared with underlying fund)



Latest Updates:


Videos

Introduction

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. 

Here's why we're excited to invest:

$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. 

Problem

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.

Solution

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.

Product

Anduril has developed a diverse product portfolio that spans multiple defense domains:

Lattice Operating System

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:

  • Real-time understanding through autonomous fusion of data from thousands of sensors and sources into an intelligent common operating picture 4
  • Automated decision advantage using deep learning models to present operators with recommended decision points 4
  • Command and control capabilities enabling real-time direction of manned and unmanned assets across multiple domains 4
  • Intelligent and secure mesh network designed for contested areas, eliminating single points of failure 4
  • Open architecture with proven integrations across third-party, legacy, and autonomous systems 4

Building better land systems: Software-defined, hardware-enabled | Anduril

Autonomous Systems

Anduril has developed specialized autonomous platforms across multiple domains:

  • Air Systems: Autonomous air systems for intelligence, surveillance, and reconnaissance missions, all tasked, connected, and controlled by Lattice1
  • Maritime Systems: Autonomous underwater vehicles (AUVs) designed for littoral and deep-water survey, inspection, and ISR operations1
  • Rocket Motors: Full-service, high-volume supply of conventional and next-generation rocket motors1
  • Counter-UAS: The Roadrunner interceptor system for countering hostile drones, complemented by the portable Pulsar electronic-warfare capability that can jam enemy systems 6

Anduril unveils 'Copperhead' underwater drone - Breaking Defense

Opportunity

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.

Traction

Anduril has demonstrated exceptional commercial momentum and investor confidence:

Customer Adoption and Contracts

Anduril has secured significant contracts with defense organizations:

  • A $250 million Pentagon contract for their Roadrunner drone defense system, including 500 Roadrunner interceptors and the Pulsar electronic-warfare capability 6
  • A 10-year, indefinite-delivery, indefinite-quantity contract worth up to $1 billion with U.S. Special Operations Command for counter-drone hardware and software 6
  • A $100 million contract with the Royal Australian Navy to develop autonomous underwater vehicles 5
  • Active deployment with the US Marine Corps, US Air Force, UK Royal Marines, and Customs and Border Protection 4

This impressive traction demonstrates strong product-market fit and the company's ability to deliver mission-critical systems to demanding defense customers.

Competition

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.

Team

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.

How Brian Schimpf Became Founder-CEO of Defense Tech Startup Anduril -  Business Insider

Market Overview & Why Now

Several converging factors make this an opportune time for investment in defense technology:

Geopolitical Dynamics

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.

Technological Readiness

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.

Battlefield Evolution

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.

Market Growth

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.

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