Investment in defense technology continues to attract significant capital as governments and industry expand spending on artificial intelligence, autonomous systems, and advanced military capabilities. Innovation X Advisors is reinforcing its focus on that sector with a new investment in one of the industry’s largest private funding rounds.
Innovation X Advisors LLC announced it participated in Shield AI’s $1.5 billion Series G financing, supporting the San Diego-based defense technology company’s continued development of AI-powered autonomous systems and next-generation aircraft. The financing values Shield AI at $12.7 billion on a post-money basis and aligns with Innovation X’s investment strategy targeting companies operating at the intersection of artificial intelligence and national security.
The financing included participation from Innovation X and other existing investors. In addition to the equity investment, the transaction includes $500 million in fixed-return preferred equity financing and a $250 million delayed draw facility, providing additional capital to support product development, expansion, and long-term strategic initiatives.
Founded in 2015, Shield AI develops autonomous software and defense technologies designed to protect military personnel and civilians. Its portfolio includes Hivemind autonomy software, the V-BAT and X-BAT aircraft platforms, and simulation technologies that enable testing and training for autonomous defense systems.
According to the company, Hivemind has successfully piloted 26 classes of vehicles, including F-16 fighter aircraft, jet-powered unmanned aerial vehicles, helicopters, drone boats, and ground vehicles. The software has also been selected by the U.S. Air Force as a mission autonomy provider for its Collaborative Combat Aircraft program, an initiative focused on integrating autonomous systems into future air combat operations.
A portion of the Series G proceeds will fund Shield AI’s planned acquisition of Aechelon Technology, a defense software company specializing in high-fidelity simulation and physics-based sensor technology. Aechelon’s software supports several national security platforms, including the Pentagon’s Joint Simulation Environment, and is expected to strengthen Shield AI’s capabilities in simulation-based testing and autonomous system development.
Innovation X said the investment reflects its strategy of backing privately held technology companies before they reach the public markets. The firm focuses on businesses developing technologies across defense, artificial intelligence, financial technology, infrastructure, and the space economy.
Chairman and CEO Roger Monteforte, who founded Innovation X in 2016, said the firm’s investment approach centers on identifying companies positioned to benefit from long-term advances in emerging technologies. In addition to nearly three decades of financial experience, Monteforte has focused on sectors including AI, machine learning, aerospace, and national security.
“This capital lets us keep building at scale,” said Brandon Tseng, president and co-founder of Shield AI. “V-BAT and Hivemind continue to deliver increased operational effects for our customers, and X-BAT, the world’s first AI-piloted VTOL fighter jet, is next. Bringing on Aechelon adds the simulation technology that will train and test all military systems of consequence before they reach the battlefield.”
Monteforte said Shield AI represents the type of company Innovation X seeks to support through its late-stage venture strategy.
“Shield AI is exactly the kind of company that Innovation X is built to back—a business solving an important problem in defense technology,” he said. “We believe the future of defense will be shaped in software, trained in simulation, and proven in the field. Our continued participation reflects the deep conviction we and our clients have in this team and this technology.”
Innovation X Advisors manages more than $4.5 billion across multiple investment funds, according to its Form ADV as of Dec. 31, 2025. The firm’s latest investment underscores continued investor interest in defense technology companies developing AI-enabled autonomous platforms as governments increase modernization efforts and demand grows for software-driven military capabilities.