Defense Tech Funding Surges in 2024 as Archer Aviation Raises $430M for New Archer Defense Program

As geopolitical tensions rise and AI advancements abound, funding to defense tech companies has surged in 2024. Archer Aviation has capitalized on this trend by forming a new Archer Defense program and raising an additional $430 million in equity. This funding comes from existing investors Stellantis and United, as well as new institutional investors like Wellington Management and 2PointZero. The company has also formed an exclusive partnership with weapons manufacturer Anduril to jointly develop a hybrid gas-and-electric-powered VTOL aircraft for critical defense applications.

Archer plans to utilize its Georgia factory for manufacturing and aims to launch air taxi networks with its Midnight aircraft starting in 2025. Anduril, a leader in defense tech funding, has raised a significant Series F round in August and has established a partnership with Archer to utilize its AI-powered command and control platform, Lattice, for real-time situational awareness.

The companies aim to accelerate the speed to market of the defense vehicles at a fraction of the cost of traditional alternatives. Archer and Anduril are pursuing a potential program of record from the Department of Defense (DOD), a significant milestone in the defense industry.

This partnership aligns with the DOGE framework and the government's focus on removing cost while maintaining capabilities, as advocated by influential figures such as Elon Musk and Vivek Ramaswamy.

Source Tech Crunch