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Deal Dive: AI’s not the only sector dodging the funding slowdown

Nov 04, 2023 - news.bensbites.co
Shield AI, a San Diego-based autonomous drone and aircraft startup, has raised $200 million in a Series F round led by Thomas Tull’s US Innovative Technology Fund, with participation from Snowpoint Ventures and Riot Ventures. The round values the company at $2.7 billion. The company's co-founder and president, Brandon Tseng, said the successful fundraising was due to the company's strong metrics, with revenue growing 90% year over year and a path to profitability by 2025.

The deal is significant in the current tougher fundraising environment, where "mega-rounds" over $100 million have become less common. In 2023, only 194 rounds above $100 million were raised, compared to 538 in 2022 and 841 in 2021. The investment also highlights the continued interest of investors in the defense tech sector.

Key takeaways:

  • Shield AI, an autonomous drone and aircraft startup, raised a $200 million Series F round led by Thomas Tull’s US Innovative Technology Fund, valuing the company at $2.7 billion.
  • The company's revenue is growing 90% year over year and it is on track to become profitable in 2025, according to co-founder and president Brandon Tseng.
  • Despite a tougher fundraising environment, investors have shown strong interest in defense tech companies like Shield AI.
  • There has been a significant decrease in "mega-rounds" over $100 million and late-stage fundraising in 2023 compared to previous years, according to PitchBook data.
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