A Record Number Of Military Startups Became Unicorns In 2025. Here's Why.

ByAlicia Park,

Contributor.

I

nvestment activity this year has created a record number of new defense startups valued at over $1 billion.

Investors poured more than $48 billion into defense startups in 2025, minting 10 new unicorns. This year’s unicorns make up more than a third of the industry’s total active unicorns, which are collectively worth $495 billion, according to Pitchbook data. That’s double the number of active unicorns in 2021, when investors poured in a record $53 billion into defense thanks to low interest rates. While the total amount of investment dollars going into defense tech is slightly lower than 2021, the average funding round this year is almost double the size, indicating fewer but larger bets from investors.