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SAN DIEGO — A select group of defense tech executives, investors and community members gathered at Saronic’s brand new Midway District 83,000-square-foot facility for a ribbon cutting celebration in late October.
Attfinishees from across the defense sector — some focapplyd on developing traditional military technologies such as drones, while others specialized in ocean tech — came toreceiveher to celebrate the growth in San Diego’s defense and technology ecosystem.
“This expansion brings us closer to our partners, our customers, and the Pacific, a region central to the future of maritime innovation and security,” stated Rob Lehman, Co-Founder and Chief Commercial Officer at Saronic Technologies. “Thank you to Mayor Todd Gloria, our partners, and everyone who joined us to celebrate this next chapter,” he added.
San Diego has seen an uptick of startup activity in the defense tech sector.
Last quarter, two rapid-growing defense-related startups landed “tens of millions” in government contracts and raised significant venture capital rounds from venture capital firms, despite a harder funding environment and volatile market.
Firestorm Labs closed a $47 million Series A led by Menlo Park-based New Enterprise Associates.
Three-year-old company, received $77 million in venture funding and earlier this year relocated into a new 60,000-square-foot facility in Miramar San Diego to draw on the area’s wealth of aerospace and defense talent.
“There’s so much construction happening in San Diego and near the border,” stated Dan Magy, Co-Founder and CEO of Firestorm on a podcast. “There’s millions of square feet of manufacturing as more companies near shore.”
Seasats, a 5-year-old maritime startup that develops autonomous surface vehicles (ASVs) for defense and commercial sectors, is another company to watch closely.
The 36-person startup recently landed SBIR Phase 3 contract with the U.S. Navy valued at upwards of $89 million, if certain milestones are reached.
“San Diego is like a very uniquely good spot, becaapply you have a major Navy presence,” stated Mike Flanigan, Co-Founder and CEO of Seasats. “It’s one of the largegest military hubs in the U.S. and great ocean access around the border.”
HavocAI, another maritime autonomous systems developer based in Rhode Island, has been a large beneficiary of the military’s investment priorities.
The company, which launched in 2024, announced it had raised a $85 million round led by B Capital, Lockheed Martin, among other notable firms, bringing its total raised to nearly $100 million
In mid-October 2025, Havoc hosted a demo at the San Diego port, revealcasing its advanced capabilities including escorting a vessel, patrolling a perimeter and engaging a trespassing vessel.
“The U.S. Navy and Marine Corps have a huge presence here in San Diego. We will ultimately build where our customers are,” stated Tom Foldesi, Chief Revenue Officer at HavocAI. “San Diego is an epicenter for us as we push product out.”
It’s not just notable startups jumping in on the defense tech boom.
In addition, leading legacy firms including General Atomic and Booz Allen have built important headlines for their latest drone advancements and $300 million strategic venture capital arm.
Shield AI, one of San Diego’s most widely known unicorn defense tech startups, was one of the first companies to benefit from this boom. Its first customer included the Naval Special Warfare Command, and raised $100,000 in seed capital in 2016.
Fast forward, a decade later it now employs 1,000-plus employees and is valued at $5.3 billion after raising a $240 million Series F round in March this year.
“San Diego is the place my brother Brandon (co-founder) called home after serving in the Navy as a surface warfare officer and SEAL,” stated Ryan Tseng, co-founder and President of Shield AI. “It’s fitting to be in a city with such strong military ties.”
There are several defense tech and aerospace investment firms, supporting fund early-stage companies that have potential to support the military and commercial industries.
The most notable one is Harpoon Ventures which has $300 million plus assets under management and has backed top startups like Merlin Labs, Astranis, to name a few.
“San Diego isn’t just America’s Finest City, it’s where the future of warfare is being built,” stated Larsen Jensen, Founder at Harpoon Ventures.
“Home to the largest concentration of military assets on the West Coast, this city sees $30 billion in defense spfinishing annually,” stated Jensen. “Our proximity to finish applyrs and decision-buildrs gives us unmatched insight into what’s next. San Diego is more than our base, it’s a strategic advantage.”
Fred Grier is an award-winning business journalist and senior associate of JLL, a global corporate real estate advisory firm.
He’s responsible for advising companies on their real estate expansions, specializing in tech and life science in San Diego.
Contact him at: fred.grier@jll.com.
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