Castelion has raised a $1 billion Series C financing at a $13 billion valuation to scale production of its Blackbeard hypersonic strike missile and accelerate development of longer-range strike weapons and defensive systems. The financing includes $800 million in equity and $250 million of committed financing for a revolving credit facility. The equity portion was co-led by JPMorganChase’s Strategic Investment Group, Andreessen Horowitz and funds managed by Carlyle. Lightspeed Venture Partners, Lavrock Ventures, Altimeter, General Catalyst and Interlagos also participated alongside new investor T. Rowe Price Associates.
The funding represents a major expansion of Castelion’s manufacturing and product development ambitions as the defense technology company moves Blackbeard toward higher-volume production.
Castelion has secured more than $500 million in U.S. military contracts during the past 18 months.
The company said it took Blackbeard from a clean-sheet design to a program of record in less than four years, with fielding targeted for 2027.
Blackbeard is designed as a lower-cost, mass-producible hypersonic strike missile built around a manufacturing model intended to support substantially higher production volumes than traditional advanced weapons programs.
Castelion plans to use a significant portion of the Series C capital to expand manufacturing capacity at and beyond its Project Ranger facility in Sandoval County, New Mexico.
The 1,000-acre Project Ranger campus is described by Castelion as the largest dedicated hypersonic missile manufacturing facility in the U.S.
The company had previously committed more than $250 million of private infrastructure spending to the site.
Following the Series C, Castelion plans to invest hundreds of millions of additional dollars to increase Blackbeard production capacity.
The company is also accelerating development and testing of a longer-range precision strike weapon that has been under development for several years.
That system will incorporate core technologies, components and manufacturing processes developed for Blackbeard.
Castelion’s strategy is to provide a lower-cost complement to larger and more expensive long-range strike systems, allowing hypersonic weapons to be produced and deployed in substantially greater quantities.
The company is simultaneously developing defensive systems using technology, manufacturing approaches and rapid-development methods established through the Blackbeard program.
Those efforts will focus on air and missile defense applications where Castelion believes lower unit costs and higher production rates could increase available interceptor inventories.
Castelion has progressed from early-stage development into repeated flight testing, operational integration and dedicated production infrastructure since its founding.
The company’s manufacturing footprint includes operations in New Mexico, Texas and California, with its headquarters in Torrance, California, and an office in Washington, D.C.
Several existing investors highlighted the speed at which Castelion has converted private capital into physical manufacturing infrastructure and operational defense systems.
Lightspeed Venture Partners led Castelion’s Series A before the company had flown a complete system and has continued investing through subsequent rounds.
Lavrock Ventures backed Castelion at the pre-seed stage, while the latest financing also brings T. Rowe Price into the investor group as the company moves closer to large-scale production.
Castelion ultimately aims to establish manufacturing capacity capable of producing hypersonic weapons at industrial scale while applying the same manufacturing platform to additional offensive and defensive systems.
KEY QUOTES:
“Deterrence depends on unapologetic American strength; highly capable weapon systems that adversaries fear produced in quantities they can’t imagine at a price taxpayers can afford. There’s a manufacturing renaissance underway and this round turbocharges American production of Blackbeard. Designed in California, built in New Mexico, supplied from small and large businesses across the United States; Blackbeard is an example of what America can do when private capital and Government work together.”
Bryon Hargis, Co-Founder And CEO Of Castelion
“Castelion is helping to address a critical national security challenge by bringing greater speed, agility and manufacturing capacity to the development of next-generation defense technologies. Through the Strategic Investment Group, part of the firm’s Security and Resiliency Initiative, JPMorganChase is proud to support companies that are strengthening the defense industrial base, delivering more affordable and scalable solutions to today’s pressing challenges, and advancing the innovation that underpins long-term national and economic security.”
Todd Combs, Head Of The Strategic Investment Group For JPMorganChase’s Security And Resiliency Initiative
“We backed Castelion when it was a small team that wanted to build what the department of War most needed faster and cheaper than the experts thought possible.”
“Four years later there is a factory in New Mexico and a production agreement with the Department of War. American Dynamism has always believed that the hardest and most important problems are physical ones, and this is the clearest proof of it we have that excellent teams can help solve them.”
Katherine Boyle, General Partner At Andreessen Horowitz
“We view Castelion as a critical asset to national security, advancing next-gen technology that strengthens America’s defense industrial base. We’re excited to partner with the team as they accelerate development and expand capacity.”
Aaron Hurwitz, Managing Director On Carlyle’s Aerospace, Defense & Government Team
“Lightspeed led Castelion’s Series A before a complete system had flown. Three rounds later the company is mixing its own propellant in New Mexico and shipping hardware to the services. Very few teams convert capital into physical capability at that ratio, which is why we have invested in every round since.”
Ravi Mhatre, Co-Founder Of Lightspeed Venture Partners
“We backed Castelion at pre-seed, when this was still just an idea, and the production demand it’s generating today is the clearest signal we’ve ever seen. In under four years, Castelion has gone from clean sheet to program of record, one of the fastest ramps in the sector. Lavrock is proud to keep backing the team as they scale Blackbeard and bring new systems online.”
Alex Poulin, Partner At Lavrock Ventures
“Castelion has earned extraordinary trust and credibility by demonstrating technology that creates an asymmetric advantage and can be built at speed, cost, and scale. They’ve turned ambitious promises into flight-tested hardware and real production capacity for critical national security priorities. The opportunity ahead is enormous, and we believe Castelion is building one of the most important defense companies of this generation.”
Erik Kriessmann, Partner At Altimeter
“Bryon, Sean and Andrew have built Castelion on strong fundamentals. The company has contracts in hand, a manufacturing campus built with its own capital, and unit economics that improve with scale, truly unique characteristics for a company before it reaches the public markets. We are thrilled to be participating in this round.”
Emma Norchet, T. Rowe Price Associates
“We believe credible deterrence will be won by companies that manufacture at the speed of the threat, build on frontier technology, and attract exceptional talent. Castelion exemplifies that rigor, and we are proud to deepen our partnership as the team works to close a critical hypersonic gap.”
Alexa Liautaud, Partner At General Catalyst
“Castelion is at the forefront of defense manufacturing in the nation. They’re building the capabilities to produce thousands of hypersonic weapons a year, something the U.S. has never seen before. Interlagos is proud to back their $1 Billion Series C and the broader shift this represents.”
Tom Ochinero, Chairman And Founding Partner Of Interlagos Capital
