The autonomous shipping firm Saronic announced on Tuesday that it has secured $1.75 billion in funding as it accelerates production to satisfy the increasing demand from the U.S. military for more advanced and cost-effective defense solutions.
This funding round, spearheaded by Kleiner Perkins, more than doubles Saronic’s valuation to $9.25 billion, up from $4 billion following a $600 million fundraising last year.
Saronic intends to utilize the investment to enhance its supply chain and shipyards, aiming to produce over 20 ships annually by 2027, which includes its new facility, named Port Alpha, located in Texas.
“We’re witnessing a genuine shift in demand towards unmanned systems that can be produced at scale and at a considerably lower cost compared to traditional vessels,” CEO Dino Mavrookas informed CNBC’s Morgan Brennan during an interview.
The U.S. is pushing to catch up with China’s extensive shipbuilding capacities and regain maritime dominance under President Donald Trump’s defense modernization initiatives. The conflict in Iran and the congestion in the Strait of Hormuz further underscore the necessity of incorporating newer technologies into modern warfare.
Mavrookas stated that Saronic’s vessels could minimize risks to military personnel in hazardous environments and assist the U.S. in diminishing China’s predominance. The company aims to help the U.S. achieve production figures not seen since World War II.
“It’s a complete reimagining of the ship,” he remarked, focusing on redesigning vessel structures for autonomy.
For several years, Silicon Valley has invested billions into defense technology firms trying to gain market share from established defense contractors like Lockheed Martin, RTX and Northrop Grumman.
Saronic, which was ranked 19th on the latest CNBC Disruptor 50 list, is part of a growing number of defense firms attracting government contracts with support from venture capital. Last year, it secured a $392 million contract with the Navy. Recently, autonomous drone company Shield AI raised $2 billion at a $12.7 billion valuation. Palantir and Anduril have also achieved significant success during the Trump administration.
Located in Austin, Texas, Saronic produces six different versions of autonomous surface vessels, including a six-foot-long model called Spyglass and its 40-metric-ton marauder.
Saronic’s primary shipyard in Franklin, Louisiana, is currently undergoing a $300 million expansion. Mavrookas mentioned that the company is on track to increase production fivefold there within the next year.
