Castelion, a missile startup founded by former SpaceX engineers, announced a $1 billion Series C round that valued the company at $13 billion, with Andreessen Horowitz, Carlyle and JPMorgan Chase leading the investment.

Founded in 2022, Castelion aims to produce hypersonic weapon systems at lower cost and faster speeds than traditional defense contractors. The company has secured more than $500 million in U.S. military contracts since its inception.

The Pentagon said it is seeking to expand its hypersonic missile inventory, noting that current U.S. stockpiles have not kept pace with China's capabilities. Castelion said its manufacturing process is intended to help close that gap.

The $1 billion round includes $800 million in equity and a $250 million revolving credit facility, and was participated in by existing investors Lightspeed, General Catalyst and Altimeter. The capital will be used to increase production of the Blackbeard hypersonic missile and other systems at a New Mexico facility.

Analysts indicated the funding reflects strong investor confidence in rapid defense technology development, though the strategic impact will depend on future procurement decisions and geopolitical developments.

Castelion plans to scale production and expects the new financing to accelerate deployment of its hypersonic systems.