Castelion, a defence startup founded by former SpaceX employees, has raised $1 billion in Series C financing at a $13 billion valuation as it prepares to expand production of hypersonic weapons.
The round was co-led by Andreessen Horowitz, Carlyle and JPMorgan Chase. Existing investors, including Lightspeed, General Catalyst, and Altimeter, also participated. The financing includes $800 million in equity and a $250 million revolving credit facility.
Castelion scales Blackbeard missile product.ion
Founded in 2022, Castelion is developing hypersonic weapon systems designed to be produced faster and at lower cost than traditional defence programs. The company has secured more than $500 million in U.S. military contracts.
Castelion plans to use the new capital to expand production of its Blackbeard missile and other hypersonic weapons at its manufacturing operation in New Mexico. Blackbeard is designed as a lower-cost hypersonic strike system capable of travelling above Mach 5.
The funding arrives as the Pentagon seeks to increase U.S. hypersonic weapons capacity amid concerns that American stockpiles have not kept pace with China’s capabilities.
Castelion is betting that its manufacturing approach can help increase production more quickly. The new financing provides the company with additional resources to scale Blackbeard and expand its role in U.S. defence programs.
