Forterra Notches $1 Billion Valuation in New Deal

Forterra makes autonomous technology for vehicles on the battlefield and some commercial vehicles. (Forterra)

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Forterra, a startup that makes autonomous technology for vehicles on the battlefield, has raised $238 million in a new funding round that lifts its valuation to more than $1 billion. 

The company’s vehicles are capable of operating individually or as a group, or “swarm,” conducting surveillance and carrying items including missiles and computing hardware to support AI technology. The new cash infusion, $50 million of which is debt, was led by Moore Strategic Ventures. The company will use the money to speed production of what CEO Josh Araujo calls the “Swiss Army knife” of military autonomous vehicles. 

Hundreds of Forterra’s systems are currently in use, Araujo said. “Some are in combat now doing mine sweeping,” said Araujo, declining to specify which combat zone. “We’re in the thick of it. We’re iterating while scaling.”

Once a niche investment thesis for patriotic contrarians, major venture firms including General Catalyst and Andreessen Horowitz as well as corporate investors have made defense technologies a core focus in recent years. Fueled partly by rising geopolitical tensions with China and an eagerness to cash in on Pentagon reforms that could benefit startups, venture investors have plowed $28 billion into the sector through the end of June, setting the stage for a record year, according to data provider PitchBook.

$238M Series C— Accelerating the future of defense.

From autonomy and edge compute to resilient communications, our platforms are redefining how modern operations connect and coordinate. This funding accelerates our work to deliver interoperable autonomy at scale with proven,… pic.twitter.com/6MmizJnTJW — Forterra (@ForterraDrive) November 12, 2025

Founded in 2002, Forterra’s software allows warfighters to control vehicles that have been outfitted with the company’s sensors, communication systems and other hardware. The startup, which employs about 500 people, adds its hardware to vehicles at its own facility where it partners with Volvo Defense, Oshkosh Defense, RTX’s Raytheon and others. 

Forterra said the fresh funds will go toward doubling production of its systems to 1,000 next year, while increasing the scope of missions to support a broader range of Pentagon priorities including missile launches and mobile artificial intelligence technology.

Franklin Templeton, Salesforce Ventures and other investors also participated in the round.

The Clarksburg, Md.-based company also has been applying its technology to commercial vehicles.

Franklin Templeton Managing Director James Cross said that Forterra’s early work for the Pentagon set it up to win more significant deals, including a recent $114 million contract with the Army. Cross said he expects changes in Washington — like Defense Secretary Pete Hegseth’s overhaul of the Pentagon’s procurement process announced Nov. 7— will benefit startups like Forterra.

“This company is in the right place at the right time,” Cross said.