Autonomous Surface Vessel Maker Saronic Secures New Capital

Saronic, a defense technology company specializing in autonomous surface vessels (ASVs) has closed a $175 million Series B funding round.

This latest investment elevates the company’s valuation to $1 billion. The funding round was led by Andreessen Horowitz with participation from existing and new investors, including 8VC, Caffeinated Capital, Elad Gil, and NightDragon.

Saronic, headquartered in Austin, Texas, was founded in 2022 by Dino Mavrookas and Rob Lehman, veterans of the Navy SEAL Team 6 and the Marine Corps, respectively. The company focuses on developing and manufacturing ASVs designed to enhance naval operations. Saronic’s product lineup includes the Spyglass (6-foot) and Cutlass (14-foot) ASVs, with the larger Corsair model currently under development. These vessels integrate advanced hardware, software, and artificial intelligence (AI) to perform critical maritime missions autonomously, even in GPS-denied environments.

Saronic aims to redefine maritime superiority by providing the U.S. Navy and its allies with cutting-edge ASVs that serve as force multipliers, working alongside manned systems to extend operational reach and reduce risks to personnel. The company’s modular open systems architecture (MOSA) ensures interoperability and cost-effective deployment, making the vessels attributable or designed to be expendable in high-risk scenarios.

“We are creating an entirely new capability for the maritime domain, one that delivers naval power without the costs and delays of a shipyard,” said CEO Dino Mavrookas. “As the future of naval warfare will rely on manned and unmanned teaming, we must build solutions that easily integrate into the existing fleet and can be produced at scale to meet any emerging threat. We are grateful to our investment partners who believe so strongly in Saronic’s ability to meet that need.”

The global autonomous ships market was valued at $5.6 billion in 2023 and is projected to grow to $12.2 billion by 2032, driven by technological advancements and increasing defense expenditures. The integration of AI, augmented reality, and advanced navigational systems is expected to propel market growth. Autonomous ships offer significant advantages, including reduced operational costs, enhanced safety, and improved mission efficiency. However, the market also faces challenges such as cybersecurity threats and regulatory hurdles.

“Our nation’s future depends on us continuing to build and deploy the best, most innovative technology,” said Katherine Boyle, a general partner at Andreessen Horowitz. “Saronic is developing the solutions we need to protect the warfighter and stay ahead of our adversaries, and we are proud to support their continued growth.”

Saronic’s Series B funding round was completed earlier this month and follows a $55 million Series A round led by Caffeinated Capital in October 2023 with participation from several other investors, including 8VC, Andreessen Horowitz, and Lightspeed Venture Partners

The new $175 million investment will be used to scale production, enhance in-house manufacturing capabilities, and advance research and development of new autonomous technologies. The funding will also support Saronic’s expansion into international markets to better serve U.S. allies and partners.

Andreessen Horowitz (aka a16z) invests in seed to venture to growth-stage technology companies, across AI, bio + healthcare, consumer, crypto, enterprise, fintech, games, infrastructure, and companies building toward American dynamism. The firm has $565 billion in assets under management across multiple funds and is headquartered in Menlo Park, California with additional offices in San Francisco and New York City.

“To deter China and other adversaries, the United States and our allies must bring intelligent, autonomous new capabilities to naval warfare,” said Alex Moore, a partner at 8VC. “Saronic delivers these capabilities on a relevant scale and timeline and has enlisted the top engineers and operators in the industry.”

8VC invests across a range of sectors including artificial intelligence, logistics, deep tech, biotech, digital health, defense, fintech, and enterprise solutions. 8VC participates in various stages of company growth, from pre-seed to Series B and beyond, with check sizes ranging from $100,000 to $50 million. The firm is currently investing out of its $880 million fifth fund which closed in 2021. 8VC was founded by Joe Lonsdale, a co-founder of Palantir, and is headquartered in Austin, Texas.