Y Combinator has backed some of the most important technology startups ever to be launched in Silicon Valley. But now, they are setting their sights on something new: cruise missiles.
What’s happening:
- Legendary Silicon Valley startup accelerator Y Combinator has invested into defense tech company Ares Industries
The big idea:
- Ares Industries is aiming to build next generation cruise missiles that are significantly smaller in size as well as cheaper in costs than existing cruise missiles
- Currently, cruise missiles made for North American combat purposes are very expensive to manufacture and are also extremely heavy, which make them incompatible for smaller missions or frequent use
Why it matters:
- This is the first venture capital bet Y Combinator has ever made into a defense tech startup, after multiple decades of successfully backing new technology companies
Going deeper:
- The initial cruise missiles being designed by Ares Industries will be fully compatible with existing launch platforms used in combat and will be capable of reaching targets at sea who are hundreds of miles away
- Other iconic Silicon Valley venture capital funds have also been making moves to expand their exposure to defense tech, with a16z recently backing a startup focused on using computer vision to operate firearms autonomously and Sequoia Capital leading a financing round for domestic combat drone manufacturing
