$10 Billion Valuation for National Security

Palmer Luckey’s Anduril Nears $10 Billion Valuation 🧨

Serial Entrepreneur Palmer Luckey already hit it big when he sold his startup, Oculus, to Meta for about $2 Billion in 2014.

But then he was fired from Oculus working as an executive in 2016.

He then cycled through three ideas for his next big startup, solving obesity, private prison reform, and national security.

He chose national security with the mindset that when you are creating a startup you aren’t competing with competitors’ products or services right now, you’re competing with them in two years because they will see your business model and incorporate it into theirs and your startup will lose it’s edge.

According to Mordor Intelligence, The US Defense Market size is estimated at USD 617.29 billion in 2024 and is expected to reach USD 651.16 billion by 2032, growing at a CAGR of 0.67% during the forecast period (2024-2032).

Anduril is an American military defense technology startup with expertise in cutting-edge autonomous systems, robots, and surveillance. They recently unveiled a reusable missile called the “Roadrunner”.

Anduril is currently valued at $8.48 Billion and they are currently raising a later-stage VC round in hopes of attaining a valuation of a whopping $10 Billion.

The reason for their success? Vertical Acquisitions

Anduril has made several key acquisitions including rocket motor developer, Adranos, and autonomous aircraft developer, Blue Force Technologies.

These acquisitions help Anduril compete in other markets and win more government contracts.

Anduril has no plans to go public anytime soon though, the timing for going public with an IPO is highly dependent on market conditions. It's crucial to avoid launching during a market downturn when valuations are low and private capital might be more favorable. Additionally, Luckey states the company needs to be well-prepared to meet the demands and scrutiny of Wall Street analysts, which may require adjustments in its operations and structure. While going public is a goal, Anduril is in no rush.

The company’s biggest round of funding was its $1.48 billion series E, when investors acquired 17.45% of the startup in late 2022. Anduril’s shares currently trade at around $19.00 on secondary markets with notable investors being Lightspeed Venture Partners, a16z, Thrive Capital, and Peter Thiel’s Founders Fund.