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American Focus > Blog > Tech and Science > Y Combinator backs its first defense startup, Ares Industries
Tech and Science

Y Combinator backs its first defense startup, Ares Industries

Last updated: August 26, 2024 2:58 am
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Y Combinator backs its first defense startup, Ares Industries
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Ares Industries: Y Combinator-Backed Defense Startup Launches Low-Cost Cruise Missiles

The defense industry has a new player on the scene with the launch of Ares Industries, the first defense startup to receive backing from Y Combinator. The startup, which officially launched earlier this week, aims to revolutionize the defense technology sector with its innovative approach to building low-cost cruise missiles.

According to a post on the YC website, Ares Industries is focused on developing cruise missiles that are not only cost-effective but also compatible with existing launch platforms. The startup’s vision is to deliver cutting-edge capabilities that meet the demands of the Department of Defense, all in a form factor that is 10 times smaller and 10 times cheaper than current solutions.

The founders of Ares Industries have already made significant progress in testing prototypes, with successful tests conducted in the Mojave Desert. The startup is on track to deliver working missile systems to its first customers by mid-2025.

YC partner Jared Friedman shared with the FT that Y Combinator has been actively encouraging defense tech startups to apply for funding, signaling a shift towards supporting innovative solutions in the defense sector.

Notably, YC’s CEO Garry Tan, who was an early employee at data analytics company Palantir, has a background in defense technology. Palantir has gained prominence for its work with the U.S. military and other government agencies, sparking both praise and controversy. Palantir CEO Alex Karp recently defended the company’s stance, emphasizing its commitment to a “consistently pro-Western view” in a New York Times interview.

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