Forterra, a Maryland-based startup developing autonomous technology for military vehicles, has raised $238 million in a new funding round, lifting its valuation to over $1 billion, Bloomberg reports. The company’s systems are capable of operating individually or in coordinated “swarms,” performing tasks ranging from surveillance to transporting missiles and AI computing hardware. The latest financing, which includes $50 million in debt, was led by Moore Strategic Ventures and also drew participation from Franklin Templeton, Salesforce Ventures, General Catalyst, and Andreessen Horowitz.
Chief Executive Officer Josh Araujo described Forterra’s vehicles as the “Swiss army knife” of military autonomous systems. Hundreds of the startup’s platforms are already deployed, with some currently engaged in mine-clearing operations, Araujo said, though he declined to specify locations. “We’re in the thick of it. We’re iterating while scaling,” he added. The company plans to double production next year to 1,000 systems, expanding their operational range to include missile launches and mobile AI applications for Pentagon priorities.
Forterra, founded in 2002, equips vehicles with sensors, communications gear, and other hardware at its own facility, collaborating with partners such as Volvo Defense, Oshkosh Defense, and RTX’s Raytheon. The startup’s growth reflects a broader surge in defense-focused venture investment, which has seen $28 billion flow into the sector through June, driven by rising geopolitical tensions and Pentagon reforms favoring startups, according to PitchBook data cited by Bloomberg.
Investors are optimistic about Forterra’s positioning in the evolving defense market. Franklin Templeton Managing Director James Cross noted that the company’s early Pentagon contracts, including a recent $114 million deal with the US Army, have set it up for future wins. He added that ongoing changes in Washington, including Defense Secretary Pete Hegseth’s procurement overhaul, are expected to benefit startups like Forterra. “This company is in the right place at the right time,” Cross said.
