Maryland-based startup Forterra, which builds autonomous vehicles for military operations, has raised $238 million in a funding round that values the company at over $1 billion. Moore Strategic Ventures led the round, which included $50 million in debt, with participation from Franklin Templeton, Salesforce Ventures, and other investors.
Forterra’s vehicles can operate solo or in coordinated “swarms,” performing tasks such as surveillance, mine clearing, and transporting equipment including missiles and AI-supporting hardware. CEO Josh Araujo described them as the “Swiss army knife” of military autonomous vehicles and said the funding will help ramp up production. “Hundreds of our systems are in use, and some are in combat now doing mine sweeping,” he said, declining to specify locations.
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Founded in 2002, the company develops the software and integrates it with sensors and communication systems on vehicles at its facility, partnering with Volvo Defense, Oshkosh Defense, and Raytheon. Forterra employs roughly 500 people and aims to double production next year to 1,000 systems while expanding mission capabilities to support Pentagon initiatives, including missile launches and mobile AI applications.
Franklin Templeton Managing Director James Cross highlighted Forterra’s work with the Pentagon, including a $114 million Army contract, as positioning the startup for growth. “This company is in the right place at the right time,” he said, noting that recent Pentagon procurement reforms could benefit emerging defense technology firms.