Castelion, a missile startup founded by former SpaceX executives, has raised a $1 billion Series C at a $13 billion valuation. The round was co-led by Andreessen Horowitz, Carlyle and JP Morgan Chase, and included participation from existing backers such as Lightspeed, General Catalyst and Altimeter.
Founded in 2022, the company aims to manufacture hypersonic weapon systems at lower cost and faster speeds than traditional defense contractors. It has already secured more than $500 million in U.S. military contracts.
The funding comes as the Pentagon seeks to expand its hypersonic missile stockpile, which has not kept pace with China's. Castelion plans to use the capital to produce its Blackbeard missiles and other hypersonic weapons at its New Mexico facility.
The round comprised $800 million in equity and a $250 million revolving credit facility.