Autonomous boat startup Saronic raises $1.75 billion in race to modernize U.S. military

Autonomous ship startup Saronic said Tuesday that it's raised $1.75 billion as it ramps up production to meet mounting U.S. military demand for newer and cheaper defense capabilities. The round, led by Kleiner Perkins, more than doubles Saronic's valuation to $9.25 billion from the $4 billion it hit after a $600 million raise early last year. Saronic plans to use the funding to scale its supply chain and shipyards, and build more than 20 ships a year by 2027, including its new shipyard, dubbed Port Alpha, in Texas. "We're seeing is a real shift in demand towards unmanned systems that can be delivered at scale and at a fraction of the price point of traditional vessels," CEO Dino Mavrookas told CNBC's Morgan Brennan in an interview. The U.S. is racing to catch up to China's vast shipbuilding capabilities and restore maritime supremacy under President Donald Trump's military modernization plans. The war in Iran and bottleneck in the Strait of Hormuz is further illustrating the need to integrate newer tools into modern warfare. Saronic’s Spyglass and Cutlass autonomous surface vessels. Courtesy: Saronic Mavrookas said Saronic's vessels can help reduce risk to military forces in dangerous environments and help the U.S. chip away at China's dominance. The company wants to help the U.S. reach production levels not seen in the U.S. since World War II. "It's rethinking the entire ship" he said, which comes down to reconfiguring vessel design for autonomy. For years, Silicon Valley has poured billions into defense tech companies seeking to take business from legacy defense contractors such as Lockheed Martin , RTX and Northrop Grumman. Saronic, which ranked 19th on the latest CNBC Disruptor 50 list , is among a growing crop of defense companies winning over the government with the support of venture capital. Last year, it signed a $392 million Navy contract. Last week, autonomous drone company Shield AI raised $2 billion at a $12.7 billion valuation. Palantir and Anduril hav...