Chaos Industries Raises $510M, Becomes $4.5B Defense Star

Los Angeles-based defense tech firm Chaos Industries has closed a $510 million funding round, propelling its valuation to $4.5 billion just three years after its founding. The Series D round, led by Valor Equity Partners, reflects growing investor enthusiasm in emerging military technology companies.

Chaos specializes in radars and sensors capable of detecting drones and small UAVs from hundreds of kilometers away, addressing vulnerabilities exposed by the ongoing conflict in Ukraine and rising drone threats at airports worldwide. Unlike older defense systems designed for larger aircraft, Chaos’ technology focuses on early detection of small aerial threats, making it increasingly relevant in modern warfare.

The company intends to use the fresh capital to expand its workforce and ramp up manufacturing capacity, with plans to announce multiple new contracts in the coming months. This investment brings Chaos’ total funding to $1 billion, underscoring the rapid pace at which the company is growing.

Valor Equity Partners’ CEO Antonio Gracias, a longtime associate of Elon Musk, is joining Chaos’ board as part of the deal. Valor has previously backed companies such as Anduril, SpaceX, and Defense Unicorns, signaling confidence in Chaos’ potential.

The funding surge comes amid a broader boom in defense tech, with investors pouring nearly $30 billion into the sector this year alone. Other notable companies experiencing rapid growth include drone maker Anduril ($30B), Shield AI ($5B), and Saronic ($4B), highlighting a broader trend of venture capital interest in next-generation military technologies.

Chaos has previously secured contracts with the U.S. Air Force, and its leadership expects several more deals soon, though specific details remain under wraps. The company’s rapid rise reflects a wider industry shift, as nations seek to strengthen defenses against drone threats and modernize military capabilities amid global security tensions.