Neros Secures $75M Series B, Joins Army Drone Project
On Monday, November 10th, drone startup Neros revealed it had closed a $75 million Series B funding round and was selected for the US Army’s Purpose Built Attritable System (PBAS) program. The Series B round was led by Sequoia Capital, which also led Neros’ $10.9 million seed round last year and participated in the $35 million Series A in March. Vy Capital, which led the Series A, and Interlagos, a previous investor, also participated in the latest funding round.
Funding will go towards accelerating the expansion of the company’s industrial capacity, scaling the production of its flagship Archer / Archer Strike drone platforms and its ground control systems, and strengthening a robust China-free domestic supply chain. Neros also plans to significantly boost research and development on innovative architectures, aiming to lead advancements in autonomous systems. On the whole, the recent funding round strengthens Neros’ capacity to provide advanced, flexible, domestically made FPV technology that meets global standards for the American military. To date, Neros has raised a total of $121 million from investors.
Neros’ Series B follows a period of rapid production scaling, significant revenue growth, and successful customer deployments. The company’s Archer FPV drone continues to gain popularity within the US military, as demonstrated by a recent $17 contract with the U.S. Marine Corps to deliver approximately 8,000 Archer Strike drones, equipped with explosive payloads from Kraken Kinetics. Key features include a price point around $2,000 per unit and a range of roughly 20km.
In February, Neros also secured a major contract to send 6,000 drones to Ukraine in six months - the highest output for any US producer at that time. Building on this momentum, Neros opened an office in Kyiv to expand further into Ukraine. Neros is increasing its attention toward foreign allies in strategic regions and has already supplied drones to the UK Ministry of Defense. This international approach enables Neros to meet urgent customer needs while supporting a more consistent demand trajectory.
Shaun Maguire, a partner at Sequoia Capital, stated in the company’s press release: “Neros is one of the fastest companies in history to be awarded meaningful defense contracts, showing just how critical FPV drones have become.” The company’s ability to scale production and meet large contract demands has helped build their reputation.
“We’re producing about 2,500 drones each month,” said Neros CEO and co-founder Soren Monroe-Anderson. “We can quickly ramp up to 5,000 per month with our current setup, but we need sufficient demand to make it happen.”
That demand is on the rise. Having been named as one of three US drone firms chosen for the initial phase of the Army’s $36 million PBAS program, which aims to acquire low-cost, disposable drones, Neros is well-positioned to benefit by supplying the Army with Archer and Archer Strike drones. The company is also providing Flatbow, an enhanced soldier-carried version of their Crossbow Ground Control System, under the same program.
As the Pentagon gears up for large-scale drone purchases, including the Army’s plan to order at least 30,000 drones soon and millions more over the coming years, Neros seems poised for continued growth.