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Defense Unicorns reach $1 billion valuation in latest funding round

Defense Unicorns has raised $136 million in a Series B funding round, pushing its valuation beyond $1 billion. The round was led by Bain Capital and included participation from Ansa Capital, Sapphire Ventures, and former CIA Director David Petraeus.

Founded in 2021, Defense Unicorns specializes in air-gapped software, delivering solutions in environments physically and logically isolated from external networks, including the public internet. Its software is currently used across the U.S. Navy, Army, Air Force, and Space Force, supporting critical defense operations.

Funding Boosts Expansion and Growth

The new funding is expected to accelerate the company’s development of secure software solutions for defense applications. Defense Unicorns joins an emerging group of U.S. defense technology startups achieving “unicorn” status, reflecting growing investor interest in firms capable of supporting military operations with advanced software tools.

In 2025, the share of Pentagon contracts awarded to U.S. defense technology companies roughly doubled, underscoring the strategic importance of private sector innovation in national security. However, many Silicon Valley-backed defense startups face challenges as they scale operations to meet the rigorous demands of building mission-critical systems at large volumes.

Focus on Secure, Air-Gapped Solutions

Air-gapped systems are designed to operate without internet connectivity or direct links to external networks, providing a high level of security for sensitive military software. Defense Unicorns’ technology allows for the installation, updating, and maintenance of software in these isolated environments, ensuring operational integrity for defense branches.

The company’s solutions are increasingly vital as the U.S. military modernizes its IT infrastructure and adopts more sophisticated digital tools for defense operations. By combining cutting-edge software development with strict security protocols, Defense Unicorns positions itself as a key partner for national defense programs.

With this latest funding and valuation milestone, Defense Unicorns is poised to expand its capabilities further, reinforcing the role of private innovation in strengthening U.S. defense technology and preparing for future operational needs.