Start-Up Incubator Backs Weapons Maker for the First Time

Y Combinator, the renowned start-up incubator that has helped launch successful companies like DoorDash, Airbnb, Reddit, and Instacart, is backing a weapons maker for the first time. Ares Industries, a new company that aims to shake up the defense industry, has received funding from Y Combinator.

Ares Industries Launched with a Promise to Create Affordable Anti-Ship Missiles

Ares Industries launched on Tuesday, promising to create missiles that can take out ships hundreds of miles away at a fraction of the cost of existing missiles. The company’s founders, Devan Plantamura and Alex Tseng, believe that their low-cost, anti-ship missiles could be a game-changer in the defense industry.

The Need for Affordable Anti-Ship Missiles

In the event of a war, the stockpile of U.S. missiles would be depleted within weeks, and there isn’t enough industrial capacity to build them at a sufficient pace, warned Plantamura and Tseng. They believe that the U.S. Department of Defense (DoD) needs smaller, less expensive cruise missiles, and lots of them! But no one has delivered on that promise yet.

Ares Industries’ Solution

Ares Industries has built multiple prototypes and flight-tested them over the summer in California’s Mojave Desert. The company is on track to deliver "early working missile systems" to their first customers by mid-2025.

Why Y Combinator is Backing Ares Industries

Y Combinator partner Jared Friedman explained some of the reasoning behind the incubator’s decision to back Ares Industries. "There are two forces in the world that make this a particularly good idea now: the current missile producers have become bloated and can’t meet demand, and drone ships mean we need smaller missiles," he wrote. Friedman compared the situation to the rocket business more than 20 years ago, when Elon Musk started SpaceX and dramatically lowered the cost of reaching orbit.

The Rise of Defense Tech Investing

Between 2021 and 2023, investors funneled $108 billion into defense tech companies, reported the Washington Post. Meanwhile, data mining company Palantir and defense tech startup Anduril have also created more buzz in the sector. During a panel at Fortune’s Brainstorm Tech conference, investors noted the rise in U.S. nationalism and the growing conservatism in Silicon Valley.

Conclusion

Ares Industries’ innovative approach to creating affordable anti-ship missiles has caught the attention of Y Combinator, a renowned start-up incubator. The company’s founders believe that their missiles could be a game-changer in the defense industry, and Y Combinator’s backing could help them achieve their goal.

FAQs

Q: What is Ares Industries?

A: Ares Industries is a new company that aims to create affordable anti-ship missiles.

Q: Why is Y Combinator backing Ares Industries?

A: Y Combinator is backing Ares Industries because it believes that the company’s innovative approach to creating affordable anti-ship missiles could be a game-changer in the defense industry.

Q: What is the current state of the defense industry?

A: The current state of the defense industry is that the current missile producers have become bloated and can’t meet demand, and drone ships mean we need smaller missiles.

Q: How does Ares Industries’ solution address the need for affordable anti-ship missiles?

A: Ares Industries’ solution addresses the need for affordable anti-ship missiles by creating missiles that are smaller, lighter, and cheaper than existing missiles.

Q: What is the timeline for Ares Industries’ product development?

A: Ares Industries is on track to deliver "early working missile systems" to their first customers by mid-2025.

Author: fortune.com

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