Rare defense unicorn: San Diego AI startup corrals $210M for drone technology used by military
San Diego’s Shield AI, an artificial intelligence startup that powers small military surveillance drones, said Tuesday that it has raised $210 million in a late-stage round of venture capital funding.
The new investment values the 200-employee company at more than $1 billion — making it a rare unicorn in the nascent defense technology space.
The company expects to layer in an additional $75 million in debt and $15 million in equity in the coming weeks to bring the total raised to $300 million.
Founded in 2015, Shield’s artificial intelligence-enabled drones have been used in actual Middle East conflict zones by the U.S. military for the past three years, according to the company.
Among its products is the Nova-class unmanned aerial vehicle platform, which can operate in high-threat, GPS and communication degraded environments — maneuvering autonomously in blacked-out conditions and inside buildings to provide surveillance, intelligence and reconnaissance.
The company was co-founded by former Navy Seal Brandon Tseng, who served in Afghanistan and other overseas hotspots. Tseng’s goal was to provide U.S. forces with drone scouts that could enter buildings, send back photos and maps, and identify armed enemy fighters inside.
