Defense technology startup Shield AI valued at $12.7 billion in latest funding round

Funding and Valuation - Shield AI is raising $2 billion in a new funding round at a valuation of $12.7 billion, aiming to expand its AI-powered software in defense technology [1] - The Series G round is led by Advent International and co-led by JPMorgan Chase's Strategic Investment Group, with participation from existing investors like Snowpoint Ventures and Riot Ventures [1] Investment Details - Blackstone-managed funds are investing $500 million in preferred equity as part of the financing, with an additional $250 million delayed draw facility, potentially bringing the total investment to $750 million [2] Market Demand - The demand for autonomous technologies has increased due to the U.S. and Israel's coordinated strikes against Iran and Russia's invasion of Ukraine, benefiting companies specializing in autonomous flight software [2] Product and Technology - Shield AI's Hivemind software enables drones and aircraft to operate in GPS-denied environments and has been tested on platforms such as F-16 fighter jets and the U.S. Air Force's Collaborative Combat Aircraft [3] Acquisition Plans - A portion of the funds will be used to acquire simulation software maker Aechelon Technology from Sagewind Capital, although financial terms of the deal were not disclosed [3] - The acquisition is expected to enhance the development of Hivemind, particularly in simulation environments like the Department of War's Joint Simulation Environment (JSE) [4]