The Pulse
UFORCE raises $700 million to expand autonomous defense production
UFORCE raised $700 million in a Series A round at a $6 billion valuation. The company plans to expand production of its uncrewed systems and research and development.
UFORCE has raised $700 million at a $6 billion valuation to expand production of its autonomous defense systems and fund research and development. UFORCE announced the Series A round on November 12.
Valor Equity Partners and the UK National Wealth Fund co-led the financing, with participation from the U.S.-Ukraine Reconstruction Investment Fund. Founded in Ukraine and headquartered in London, UFORCE makes uncrewed systems for use at sea, on land and in the air, along with AI software and command-and-control systems to operate them.
Investors and leadership
Menlo Ventures, Xantium and Hiro Capital also participated in the round. Existing investors Shield Capital, Ballistic Ventures, Lakestar and Squadra increased their stakes.
The reconstruction fund's investment will support staffing, research and development, and new product development for UFORCE's operations in Ukraine. The fund is a joint U.S.-Ukraine investment fund established to attract capital for reconstruction, economic development and strategic sectors.
Retired General Christopher G. Cavoli, a former NATO Supreme Allied Commander Europe and a partner at Valor Equity Partners, joins the UFORCE board. The company also has major hubs in Kyiv and Washington, DC, and operations across Europe, the United States and Asia.
Earlier financing and bookings
In March, UFORCE raised $50 million at a valuation of around $1 billion, CNBC reported. CEO Oleg Rogynskyy told CNBC that bookings had more than doubled over the past year from a base of several hundred million dollars, while declining to give a more exact figure.
Rogynskyy also told the outlet that the company had received offers at higher valuations but chose the round because of Valor and the other investors. He said its financial performance justified the valuation.
Production plans
The company plans to distribute production capacity across the U.S., Europe, Asia-Pacific and the Middle East. It says the expansion is intended to support continuous production and supplies for front-line troops despite continued attacks in Ukraine.
The capital will also support more research and development and increased production of the MAGURA uncrewed surface vessel, NEMESIS uncrewed aerial vehicle, LIUT ground vehicle and PREDATOR turret families. UFORCE plans to work with partners in allied countries, including by converting existing maritime and automotive manufacturing capacity for defense needs.
A recently announced partnership with ReconCraft is intended to expand U.S. manufacturing of MAGURA vessels. UFORCE is also a founding member of the EU-Ukraine Drone Alliance and has partnerships within NATO and Joint Expeditionary Force networks.
Systems in use
The company says its NEMESIS Class 1 heavy strike aerial vehicles, which include multi-use and one-way attack platforms, have completed more than 300,000 combat flights and been adopted across 100+ units. It also says MAGURA vessels have contributed to the destruction of more than a dozen Russian warships in the Black Sea and have shot down multiple helicopters and fighter aircraft in combat.
Rogynskyy told CNBC the company was working with several NATO countries but declined to identify customers or say how much production went to Ukraine rather than overseas markets. Asked about international demand, he told the outlet that UFORCE was committed to meeting Ukrainian military requirements first.