Defense tech startups raise $405 million in new funding rounds

ORAN Development Company

This artificial intelligence outfit has fetched $45 million in Series A capital to aid its work on developing an open architecture platform for unifying communication, sensing and edge intelligence functions in radio networks.

Also known as ODC, ORAN Development Company opened for business in 2023 to architect what it calls a “Distributed Compute Grid” for operating digital and physical telecommunications infrastructure.

ODC is pushing its AI-native platform as a product that can turn cell towers and other sites into high-performance compute hubs, which would bolster their resiliency. The idea is to create the conditions needed for the eventual transition from 5G to 6G.

The list of Series A participants includes Booz Allen Hamilton's venture capital arm, Cisco Investments, Nokia, NVIDIA, AT&T, MTN and Telecom India. They join existing investors Phoenix Venture Partners and Cerberus Capital Management, the latter of which was a seed investor.

ODC is working with several telecom giants, including those that have invested in ODC, to ramp up commercial engagements for the platform throughout 2026.

PDW

This developer of unmanned systems and solutions has fetched $110 million in Series B capital in support of efforts to ramp up production of its drones and pursue additional government contract opportunities.

Also known as Performance Drone Works, PDW opened for business in 2015 to manufacture small autonomous platforms for use in combat and crisis response missions.

PDW designs its robotic systems and software to provide military and public safety agencies with surveillance, electronic warfare and strike capabilities.

Ondas, which made a $35 million investment in PDW back in the fall, led the Series B round that also involved Booz Allen Ventures. Hood River, Cedar Pine and Hanwha Asset Management's venture fund also participated in the round.

Houlihan Lokey worked as exclusive financial adviser to PDW.

Overmatch Ventures

This early-stage venture capital firm has closed its second fund at $250 million in capital commitments to support further investments in companies focused on deep tech, defense and space.

Overmatch Ventures’ early investment activity has included the likes of xAI, Saronic, CHAOS Industries, Nominal, Impulse Space and Armada AI. The VC firm started in 2023 and closed its debut fund in 2024 at $70 million in commitments.

For Fund I, Overmatch deployed roughly $140 million in co-investment alongside that fund itself as a way to help portfolio companies obtain follow-on capital and give investors more direct exposure to those firms.

Overmatch also uses special purpose vehicles to give companies growth capital for Series B rounds and more with the idea of further helping them navigate the government procurement landscape and other regulatory complexities.

Overmatch is led by General Partners Evan Loomis, co-founder of Icon and Saturn Five; Jordan Blashek, a Marine combat veteran and serial entrepreneur; and Morgan Hitzig, a Navy combat veteran.