Defense Unicorns valued at $1 billion in latest funding round

Jan 13 (Reuters) - Defense Unicorns, which is a software provider to the ​U.S. Department of War, said ‌on Tuesday it has completed a Series B ‌funding round worth $136 million, bringing its valuation to over $1 billion.

The funding round, which was led by Bain Capital, saw ⁠participation from ‌Ansa Capital, Sapphire Ventures and David Petraeus, the former director ‍of the Central Intelligence Agency, among others.

In 2025, U.S. defense technology companies roughly doubled their ​share of Pentagon contracts. However, ‌many Silicon Valley-backed firms are now facing challenges as they move from being startups to heavyweights capable of building weapons at scale.

Colorado-based Defense Unicorns, founded in ⁠2021, focuses on ​air-gapped software.

This involves delivering, ​installing and updating software in an environment physically and logically isolated ‍from external ⁠networks, including the public internet.

The company provides services to the U.S. Navy, ⁠Army, Air Force, and Space Force.

(Reporting by ‌Aishwarya Jain in Bengaluru; Editing by ‌Krishna Chandra Eluri)