Castelion Reaches $13B Valuation With New Funding for Hypersonic Missile Production

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 JPMorgan Chase.

The financing puts the company in focus as defense tech investors continue backing startups aiming to move faster than traditional defense primes.

Founded in 2022, Castelion set out to manufacture hypersonic weapon systems at a lower cost and at faster speeds than traditional defense primes. Since then, the startup has secured more than $500 million in U.S. military contracts.

The company plans to use the new capital to produce its Blackbeard missiles and other hypersonic weapons at its New Mexico production facility.

The funding comes as the Pentagon looks to procure more hypersonic weapons. TechCrunch reports that the U.S. stockpile of hypersonic missiles capable of traveling above Mach 5 has not kept pace with China’s.

Castelion is betting that faster manufacturing can help address that gap, making production speed a central part of its pitch.

The round included participation from existing backers, including Lightspeed, General Catalyst, and Altimeter. TechCrunch reports the financing comprised $800 million in equity and a $250 million revolving credit facility.

For readers tracking defense startups, the key takeaway is simple: Castelion is pairing a major valuation jump with capital specifically tied to scaling production.