In a recent development, Austin-based defense startup Saronic has successfully raised $600 million in a Series C funding round, which will be utilized to establish an autonomous ship factory known as “Port Alpha”, as announced yesterday. This significant investment has resulted in Saronic’s valuation being quadrupled to $4 billion, a substantial increase from its previous round.

The funding round was led by investor Elad Gil, with General Catalyst joining forces with existing investors, including Andreessen Horowitz, 8VC, and Caffeinated Capital, among others.

This investment positions Saronic as the second or possibly third most valuable defense tech startup in the U.S., following Anduril’s last round, which valued the company at $14 billion. However, Shield AI may surpass this, as it is reportedly in discussions to achieve a $5 billion valuation in its upcoming funding round. Additionally, Anduril is reportedly in talks to raise further funding at a valuation of $28 billion.

Saronic is not the only defense tech company with ambitious manufacturing plans, as Anduril recently announced plans to build a billion-dollar megafactory in Ohio.

Although Saronic has not yet secured a site for Port Alpha, the company is actively searching, according to a spokesperson. The “shipyard of the future” is expected to commence operations within five years, as stated by Saronic’s co-founder and CEO Dino Mavrookas in an interview with Defense News.

Saronic has already developed three models of autonomous surface vessels (ASVs) measuring up to 24 feet in length, approximately half the length of a modern lifeboat. The company claims that the factory will also produce large unmanned ships, while enhancing U.S. shipbuilding capacity in comparison to China.

Unmanned ships have become a significant trend in naval warfare, largely due to Ukraine’s successful deployment of drone ships to drive the Russian Navy out of Crimea, despite Ukraine’s limited manned naval capabilities, as reported.

With this funding, Saronic has now raised nearly $850 million, according to Mavrookas, who attributed the quadrupled valuation to the company’s rapid development of new vessels and software.

Saronic’s funding round is the latest indication that defense tech continues to experience significant growth in Silicon Valley, with substantial investments being made in the sector, as reported earlier.