Castelion, a hypersonic missile startup founded in 2022 by former SpaceX executives, has reached a valuation of $13 billion following a $1 billion Series C funding round. This significant investment was co-led by prominent firms including Andreessen Horowitz, Carlyle, and JPMorgan Chase. Castelion’s mission is to produce hypersonic weapon systems more quickly and cost-effectively than established defense contractors, a goal that has already attracted substantial U.S. military contracts totaling over $500 million.

The timing of Castelion’s funding boost corresponds with renewed Pentagon interest in expanding its hypersonic missile stockpile to keep pace with developments in China’s weapons capabilities. Hypersonic missiles can travel at speeds exceeding Mach 5, offering strategic advantages in modern combat scenarios. Castelion aims to leverage its faster manufacturing processes to help close the existing capability gap in the U.S. military.

Based in Torrance, California, Castelion plans to utilize the new capital to scale production at its facility in New Mexico, focusing on its Blackbeard missile system among other hypersonic projects. The $1 billion infusion includes $800 million raised in equity and a $250 million revolving credit facility. Besides the lead investors, the round saw continued support from previous backers like Lightspeed, General Catalyst, and Altimeter.

This injection of capital is expected to accelerate Castelion’s ability to mass-produce cutting-edge hypersonic missiles, positioning the company as a key player in the defense technology sector. With its innovative approach and significant government contracts, Castelion is staking a major claim in the rapidly evolving market for advanced weapons systems.