Auterion closes $130M Series B round to expand drone software

Auterion, an eight-year-old company that develops software for military drones, has fetched $130 million in Series B capital to aid in efforts to expand both its internal capacity and geographic footing.

The Arlington, Virginia-headquartered company designs its software to help a single operator control multiple autonomous vehicles at once, regardless of who manufactures the drones.

Following Russia’s invasion of Ukraine in 2022, Auterion began to emphasize defense in its strategy and the use of artificial intelligence technology in drones to give them autopilot functions. Auterion originally opened for business in 2017 as a developer of delivery drones.

Bessemer Venture Partners led the Series B round announced Tuesday with Lakestar, Mosaic Ventures and Costanoa Ventures all returning investors.

The round also included $25 million in capital from Rochefort Asset Management through the Defense Department’s Office of Strategic Capital, which DOD set up in 2022 to steer private investment toward the military’s key technology priorities.

In December, Rochefort was selected as an approved manager for OSC’s initiative to provide capital for small businesses that focus on DOD’s 14 critical technology areas including autonomy and AI.

“Our technology ensures humans remain in control of targeting decisions while providing the autonomous capabilities needed to defend against — and deter — authoritarian threats,” Auterion’s founder and CEO Lorenz Meier said in a release.

DOD awarded Auterion a $50 million contract over the summer to provide 33,000 AI guidance kits for drones Ukraine is using in its defense against Russia.

As part of the Series B round, Bessemer’s Alex Ferrara will join Auterion’s board of directors.

Below is a Bloomberg TV interview with Meier aired Tuesday.