- Castelion closed a more than $1 billion funding round co-led by private-equity giant Carlyle.
- The Series C financing announced Aug. 19 includes $800 million in equity and a $250 million committed revolving credit facility.
- The funding will be used to expand production of Blackbeard, Castelion’s hypersonic strike missile, and accelerate work on a longer-range precision strike weapon.
- Castelion, a defense-tech startup, has raised more than $1 billion in new financing as it moves to expand missile production and develop a broader portfolio of offensive and defensive weapons.
- The initial fielding of Blackbeard is targeted for 2027.
- The U.S. Navy has emerged as its main customer, awarding Castelion about $50 million in February to advance Blackbeard toward an early operational capability.
- In June, the Navy placed a $23.4 million firm-fixed-price order for 50 pre-production Blackbeard weapons and 50 shipping and storage containers.
- Blackbeard is expected to cost roughly $384,000 per missile, compared with millions or tens of millions of dollars for some existing U.S. hypersonic weapons.
Castelion has successfully closed a funding round exceeding $1 billion, co-led by Carlyle and Andreessen Horowitz, to enhance the production of its Blackbeard hypersonic missile and develop new weaponry. The financing includes $800 million in equity and a $250 million revolving credit facility, valuing the startup at $13 billion.1234
The funds will primarily be allocated to ramp up production at Castelion's facility in Sandoval County, New Mexico, with the initial fielding of Blackbeard targeted for 2027. The U.S. Navy has emerged as a key customer, awarding Castelion approximately $50 million in February to advance Blackbeard's operational capabilities, followed by a $105 million contract in April for integration and testing on the F/A-18E/F Super Hornet.567
In June, the Navy placed a $23.4 million order for 50 pre-production Blackbeard missiles, which are expected to cost around $384,000 each, significantly lower than existing U.S. hypersonic weapons. The fresh capital will also support the development of a larger hypersonic strike weapon and mass-produced air-defense missiles, reflecting the growing demand for advanced defense technologies.89
“The funding values Castelion at $13 billion and will support the production of its Blackbeard missile at its New Mexico facility. The U.S. Navy has emerged as a key customer, awarding Castelion approximately $155 million in contracts to advance the missile's operational capabilities.”
wsj.com
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