SpaceX veterans’ hypersonic weapons startup secures $100 million

ORLANDO, Fla. — A California-based startup led by former SpaceX executives announced Jan. 29 it has raised $100 million to accelerate development of lower-cost hypersonic missiles, marking Silicon Valley’s latest push into the defense sector traditionally dominated by established contractors.

Castelion secured $70 million in Series A funding led by Lightspeed Venture Partners with participation from a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital and Interlagos; plus $30 million in venture debt from Silicon Valley Bank. The funding follows a $14.2 million seed round and various Small Business Innovation Research contracts from U.S. military services.

The El Segundo-based company, founded in November 2022, aims to disrupt the hypersonic weapons market by applying commercial space industry practices to missile manufacturing. Hypersonic missiles, which travel at over five times the speed of sound and can maneuver mid-flight, have become a key priority for the Pentagon as China and Russia advance their own capabilities.

These weapons combine the speed of ballistic missiles with the maneuverability of cruise missiles. They fly in the upper atmosphere at altitudes between 40-100 kilometers, and can strike hardened or time-sensitive targets with conventional warheads while maintaining maneuverability that makes them difficult to intercept.

“With rising tensions in the Indo-Pacific, the United States and its allies need a non-nuclear deterrent capability,” said Bryon Hargis, Castelion’s co-founder and chief executive officer, who previously served as SpaceX’s director of government sales. “Affordable, mass-produced hypersonic long-range strike weapons are required to build a decisive combat power advantage,” he said.

The startup enters a field dominated by defense giants like Lockheed Martin and Raytheon. But rather than competing directly, Castelion is targeting a market segment focused on higher-volume production at lower costs.

The company has adopted vertical integration, manufacturing everything from avionics to solid rocket motors in-house. It conducts biweekly prototype launches in California’s Mojave Desert and completed its first full weapon test in March 2024.

“We’re investing our own money to scale up manufacturing,” said Hargis, a 20-year space industry veteran. The company’s missile design aims to be compatible with U.S. Army, Navy and Air Force launch platforms.

Castelion’s leadership includes co-founder and chief operating officer Sean Pitt, former director of commercial sales at SpaceX, and advisors Mike Griffin and Lisa Porter, who held senior Pentagon positions during the first Trump administration.

The company, which operates facilities in Allen and Midland, Texas, was originally named Pallas Industries but rebranded after a naming conflict with Pallas Advisors, a Washington, DC lobbying firm.

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