Forterra Notches $1 Billion Valuation in New Deal
Autonomous Vehicle Startup Applies Technology to Military, Commercial Vehicles
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Forterra, a startup that makesautonomoustechnology for vehicles on the battlefield, has raised $238 million in a new funding round that lifts its valuation to more than $1 billion.
The company’s vehicles are capable ofoperating individually or asa group, or “swarm,” conducting surveillance and carrying items including missiles andcomputing hardware to support AI technology.The new cash infusion, $50 million of which is debt, wasled by Moore Strategic Ventures. The company will use the money to speed production of whatCEO Josh Araujo calls the “Swiss army knife” ofmilitary autonomous vehicles.
Hundreds of Forterra’s systems are currently in use, Araujo said. “Some are in combat now doing mine sweeping,” said Araujo, declining to specify which combat zone.“We’re in the thick of it. We’re iterating while scaling.”
Once a niche investment thesis for patriotic contrarians, major venture firmsincludingGeneral Catalyst and Andreessen Horowitzas well as corporate investors have made defense technologies a core focus in recent years. Fueled partly by rising geopolitical tensions with China and an eagerness to cash in on Pentagon reforms thatcould benefit startups, venture investors have plowed$28 billion into the sector through the end of June, setting the stage for a record year, according todata provider PitchBook.
$238M Series C— Accelerating the future of defense.
From autonomy and edge compute to resilient communications, our platforms are redefining how modern operations connect and coordinate. This funding accelerates our work to deliver interoperable autonomy at scale with proven,… — Forterra (@ForterraDrive)
Founded in 2002, Forterra’s software allows warfighters to control vehicles that have been outfitted with the company’s sensors, communication systems and other hardware.The startup, which employs about 500 people, adds its hardware to vehicles at its own facility where it partners withVolvo Defense,Oshkosh Defense, RTX’s Raytheon and others.
Forterra said the fresh funds will go toward doublingproduction of its systems to 1,000 next year, while increasing the scope of missions to support a broader range of Pentagon priorities including missile launches and mobile artificial intelligence technology.
Franklin Templeton, Salesforce Ventures and other investors also participated in the round.
The Clarksburg, Md.-based company also has been applying its technology to commercial vehicles.
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Franklin Templeton Managing Director James Cross said that Forterra’s early work for the Pentagon set it up to win more significant deals,including a recent $114 million contractwith the Army.Cross said he expects changes in Washington— like Defense SecretaryPete Hegseth’s overhaulof thePentagon’s procurement processannounced Nov. 7—will benefit startups like Forterra.
“This company is in the right place at the right time,” Cross said.