Hermeus Reaches $1B Valuation with $350M Raise for Hypersonic Jet Development
Hermeus hits $1B valuation after raising $350M to accelerate development of its Mach 5 hypersonic unmanned aircraft and expand manufacturing capacity.
LOS ANGELES – In a significant boost for the hypersonic aviation sector, defense startup Hermeus has secured $350 million in a new funding round, propelling the company’s valuation to the coveted $1 billion "unicorn" status.
The Los Angeles-based firm, which aims to develop the world’s fastest unmanned aircraft, announced Tuesday that the capital injection consists of $200 million in equity and $150 million in debt financing. The equity portion was led by Khosla Ventures, with participation from a heavy-hitting roster including Canaan Partners, Founders Fund, In-Q-Tel, and RTX Ventures.
The round also welcomed new investors, such as the venture arm of Cox Enterprises and the publicly traded Destiny Tech100.
Strategic Use of Debt and Development
According to Hermeus co-founder and CEO AJ Piplica, the decision to incorporate $150 million in debt was a calculated move to preserve equity for the company’s growing cap table. "We build a lot of hardware and we’re expanding our manufacturing capabilities," Piplica told TechCrunch. "If we can finance a large portion of our spend non-dilutively, it’s absolutely the way to do it."
This funding arrives amid a massive surge in defense technology investment. According to PitchBook, venture capital investment in the sector topped $9 billion globally across 265 rounds last year alone.
The round also welcomed new investors, such as the venture arm of Cox Enterprises and the publicly traded Destiny Tech100 .
A Pivot Toward Proven Power
A pivotal moment in Hermeus' trajectory occurred when the startup shifted its technical strategy. Initially developing its own engine from scratch, the company pivoted after establishing a relationship with RTX Ventures (the venture arm of RTX Corporation, formerly Raytheon).
Hermeus decided to work with Pratt & Whitney, an RTX subsidiary, to modify the existing F100 engine. This integration has drastically shortened the development timeline for their hypersonic aircraft, allowing for faster testing and iteration while securing contracts with the U.S. Department of Defense.
Zach Shore, Hermeus’ president, noted that this approach allows the company to satisfy immediate military demand while steadily pursuing its ultimate goal of Mach 5 flight (five times the speed of sound).
The "SpaceX" Model of Aviation
Hermeus is adopting a "rapid prototyping" philosophy reminiscent of SpaceX—a rarity in traditional aerospace. Last month, the company successfully flew a demonstrator aircraft the size of an F-16. Plans are already underway for a second supersonic iteration and a third follow-up aircraft.
"There’s nowhere in the world where companies are building new full-scale aircraft on an annual basis," Piplica stated, highlighting the difficulty of finding talent experienced in such high-speed development.
The CEO acknowledged that the path to hypersonic flight is fraught with risk, including the potential for crashes. However, he argues that the traditional 20-to-25-year development cycle for aircraft is exactly what Hermeus is trying to disrupt. With a staff approaching 300 employees and new capital in hand, the company is betting that building, testing, and even failing quickly is the only way to conquer the hypersonic frontier.
