Y Combinator backs its first defense startup, Ares Industries

Y Combinator’s first defense startup, Ares Industries, launched earlier this week.

In a post on the YC website, the startup outlined a vision to build low-cost cruise missiles that will be compatible with existing launch platforms, saying it will “deliver the capabilities that the [Department of Defense] wants in a form factor that’s 10x smaller and 10x cheaper.”

Ares Industries was founded by Devan Plantamura and Alex Tseng, who said they’ve tested prototypes in the Mojave Desert and plan to deliver working missile systems to their first customers in mid-2025.

“We believe our vision for anti-ship cruise missiles can help fill the munitions gap that the US faces,” they wrote. “At Ares, we would never wish for a war to occur. But by helping to rebuild our defense industrial base, we can make sure the United States is prepared to stop a conflict and save countless lives.”

YC partner Jared Friedman told the FT that the incubator started encouraging defense tech startups to apply earlier this year.

While defense startups are relatively rare in Silicon Valley, YC’s CEO Garry Tan was an early employee at data analytics company Palantir, which has become hugely successful through its sometimes controversial work for U.S. military, as well as other governments and agencies. CEO Alex Karp recently told The New York Times he was “not going to apologize” for Palantir’s work and instead defended the company’s “consistently pro-Western view.”