Counter-Drone Radar Startup, Chaos Industries, Raises $510 Million
Chaos Industries, a manufacturer specializing in counter-drone radar systems, recently secured $510 million in a funding round concluded last month, according to CEO John Tenet. Based in Los Angeles, California, with offices across the United States and London, Chaos Industries produces radars capable of detecting drones, a vulnerability that has become prominent amid Russia’s conflict in Ukraine. The company is now valued at $4.5 billion.
The Series D round, previously unreported, was led by Valor Equity Partners, with participation from 8VC and Accel. The newly raised capital will be directed toward scaling manufacturing capabilities and expanding the workforce. Remarkably, this round comes just six months after the company’s prior fundraising effort, bringing its total capital raised since its 2022 founding to approximately $1 billion.
Antonio Gracias, Founder, CEO, and CIO of Valor Equity Partners and an experienced adviser with ties to both Elon Musk and the Department of Government Efficiency, will join Chaos Industries’ board of directors. Valor Equity Partners has also led investment rounds for notable firms such as Anduril, SpaceX, and Defense Unicorns. “We look forward to supporting them,” said Gracias.
As of August 2025, defense technology companies had already attracted nearly $30 billion in investments, according to Pitchbook. Investors are increasingly optimistic about the sector’s potential to modernize the U.S. military during ongoing strategic competition with China and the sustained impact of the war in Ukraine on battlefield technology. This surge in investment has elevated several industry players into multi-billion dollar valuations, including Anduril, valued at $30 billion in April; Saronic, valued at $4 billion in February; and Shield AI, which reached $5 billion in March. “It’s no secret defense tech has become one of the hottest categories in venture capital,” commented Tenet.
Chaos Industries previously announced a $2 million contract with the U.S. Air Force and anticipates disclosing several additional agreements in the near future. The increasing threat of drone attacks, particularly since the escalation of hostilities in Ukraine and growing concerns over drone incursions at airports, has heightened government focus on counter-drone solutions.
Central to Chaos Industries’ value proposition is its advanced sensor and radar technology, which, according to Tenet, can detect drones and small unmanned aerial vehicles from “hundreds of kilometers away” - a significant improvement over legacy systems targeting larger aircraft. To further strengthen its technological edge, Chaos Industries recently acquired Ziva Corporation, whose capabilities reportedly allow detection and response to emerging threats up to ten minutes faster than traditional radars.
John Tenet, who previously co-founded Epirus, a company known for microwave-powered systems designed to neutralize drones, established Chaos Industries along with Bo Marr, Brett Cummings, and Gavin Hood. To support federal sales initiatives, the company has enlisted former government officials, including Will Hurd, former CIA officer and U.S. Representative, as Chief Strategy Officer, and George Tenet, former CIA director and current Executive Chairman, among others. George Tenet is the father of Chaos Industries’ CEO, John Tenet.