Hypersonic weapons start-up Castelion is raising a $350 million Series B led by Lightspeed Venture Partners and Altimeter Capital, according to sources and files seen by A Technology NewsRoom.The round, which values the business in the billions, is expected to close in a matter of weeks.
A term sheet has actually been signed.
The brand-new round begins the heels of $100 million in Series A financing that closed in January.
That round was composed of about $70 million in equity and $30 million of debt.
Lightspeed also led that round.Castelion declined to comment.
It is notoriously difficult for nontraditional players to burglarize the substantial federal government defense market, but Castelion has made significant strides considering that it emerged from stealth in late 2023.
The business, which was founded by previous SpaceX executives, wants to change the production of hypersonic missile systems, a vital nationwide security technology.Despite the U.S.
Department of Defenses massive budget plan, military leaders are sounding the alarm on Chinas capability to rapidly develop and field hypersonics.
These weapons travel above Mach 5 and Chinas abilities are starting to exceed the United States.
Castelion is proposing a solution.
The business takes a similar method to SpaceX: construct rapidly, test regularly, and vertically incorporate to drive down costs.
It has already won grants and awards from a suite of DoD workplaces, including the Air Force Research Laboratory and the Naval Air Systems Command.
The company checked its hypersonic lorry for the first time in the Mojave Desert in March as it looks to prove to the government that it can field low-priced hypersonic missiles at scale.Castelion appeared in the U.S.
Armys 2026 budget request published in June.
In the budget plan, the military branch has asked for $25 million under an effort called Project HX3 to support the advancement and testing of a budget friendly, mass-produced hypersonic weapon called Blackbeard Ground Launch (GL).
As the document describes, Blackbeard GL will have around 80% of the capability of a long-range hypersonic weapon variant currently being developed by aerospace primes.
But through the agreement, the Army is stating it is willing to trade a bit of speed and variety for a lower-cost product.The upcoming agreement, which is essentially a done deal as soon as President Trump indications the budget into law, has 2 phases: The very first will see Castelion deliver a prototype proof-of-concept that it will demonstrate in early 2026.
If that succeeds, the 2nd stage will include the delivery of 10 model missiles in 2027 for additional screening utilizing a standard launcher platform called High Mobility Artillery Rocket System.
Blackbeard is also being created to be compatible with a new launcher system that will have self-governing capabilities.All of Castelions previous wins with the DoD are a pittance compared to the possibilities afforded by the financially rewarding hypersonic-weapons market.
If the Army field screening goes well, Castelion could ink a larger agreement and begin providing Blackbeard rockets in early 2028.
Lockheed Martin, Raytheon, and Northrop Grumman might wish to enjoy their backs.