February 2026 Edition

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February was a portfolio milestone month, that coupled with escalating geopolitical tension in the middle east and we’re already off to an intense start to the year. The U.S. military buildup in the Middle East is now the largest since the 2003 Iraq invasion, with two carrier strike groups deployed and F-22s positioned in Israel. Meanwhile, defense tech is pumping out new iterations to bring the latest tech to the fight as soon as possible.

This month Anduril's autonomous fighter co-pilot Fury completed its first weapons integration test flight, a defining moment for the Collaborative Combat Aircraft program. The company is also poised to raise a new $8B funding round at a $60B valuation. Stoke Space extended its Series D to $860M as Nova approaches first launch, and Arbor's CEO detailed HALCYON's path to 1GW annual production capacity by 2030 in a POWER Magazine feature.

For anyone seeing their investments grow and thinking, wow I need to figure out a better tax strategy, check out my latest Substack post "It's Not What You Make, It's What You Keep" on Investing in Organized Chaos.

Portfolio Spotlight

Cyrus is proud to support transformative companies building the physical backbone of American dominance:

Arbor Energy: CEO Brad Hartwig provided an extensive interview to POWER Magazine this month detailing their HALCYON plant design and market positioning. Each modular 25MW unit can be linked to produce 100MW to 1GW+ of continuous output, with the first turbine targeted online by 2028 and manufacturing capacity reaching 1GW annually by 2030. Brad confirmed active discussions with hyperscalers, noting that 5+ year procurement backlogs for traditional turbines are driving urgency.

Icarus: Post Y-Combinator, the company announced a hiring push with 8 engineers joining a team that includes former SpaceX, Tesla, and TOPGUN members. The company continues building on its seven-figure government revenue base as the DOD's Drone Dominance Program advances toward 200,000+ platform acquisitions.

Volund Manufacturing: The Redondo Beach facility continues running qualification batches for defense prime contractors as the company works toward Q1 LOI closures. The strategic positioning strengthens as the Pentagon's Drone Dominance Program and the Army's million-drone procurement goal create massive demand for attritable propulsion systems.

Investment Opportunities & Updates

Our SPV positions continue to demonstrate significant momentum:

Anduril Industries: Other than the fact the company is raising an $8B funding round, they recently completed their first first weapons integration test flight for their Fury aircraft. The Air Force plans to field over 1,000 CCAs, with a production decision expected this year. Meanwhile, Arsenal-1 construction advances in Ohio, Building 1 walls are rising and production remains on track for Q2. Additional February wins include a $23.9M USMC Bolt-M contract for 600+ loitering munitions and a $43.7M DPA Title III award for solid rocket motor production expansion.

Antares Nuclear: Following their DOE PDSA approval, the team is executing toward July 4 criticality at Idaho National Laboratory. This month they signed an MOU with the University of South Carolina Aiken for workforce development as Antares expands operations in the state. The company is closing final reactor design and completing qualification of heat pipes, heat exchangers, and power conversion systems. If that wasn’t enough, they just expanded into the remainder of their facility now occupying over 300,000 square feet.

Chaos Inc.: Chaos while continuing to primarily operate in stealth, continues supporting Army experimentation with VANQUISH distributed radar systems. The company is providing on-site training, integration support, and rapid product iterations based on operator feedback. With drone threats dominating Middle East operations, the demand signal for distributed early-warning radar has never been stronger.

Critical Loop: The company showcased microgrid deployments at DISTRIBUTECH 2026 in San Diego, where 20,000+ energy professionals gathered to discuss grid modernization and DER integration. Critical Loop has begun implementing mobile microgrids with defense contractors, with aspirations to deploy at remote military installations.

Hemispheric AI: CEO Hagai Lalazar participated in a BrainMind panel on foundational models for EEG and neural bio-signals alongside AI experts including Tom Gruber (co-founder of Siri). The company also began recruiting for an Alzheimer's disease observational study, signaling progress on healthcare applications.

Impulse Space: LEO Express-3 has been announced as the first mission for the upgraded Mira vehicle design, validating improved systems ahead of GEO flights beginning this year. Helios flights remain on schedule for 2026, with the first Caravan rideshare mission to GEO fully manifested. Commercial partnerships continue expanding, SES and Infinite Orbits have signed multi-launch GEO transport agreements beginning 2027.

Stoke Space: This month, Stoke announced a $350M extension to its Series D, bringing the round total to $860M and lifetime funding to $1.34B. CEO Andy Lapsa stated the additional capital will "accelerate future elements of its product roadmap." At Cape Canaveral, Launch Complex 14 reconstruction is nearly complete, the 121-foot umbilical tower is up, propellant farms are installed, and pad activation is imminent. Nova's first launch is expected later this year, which would unlock competition for $5.6B in NSSL Phase 3 contracts.

Market Insights

Iran Tensions Peak: The U.S. military buildup in the Middle East is the largest since 2003. Two carrier strike groups are deployed, F-22s are positioned in Israel, and reports indicate the U.S. is prepared to strike Iran "within days." Indirect talks in Muscat and Geneva have produced only preliminary progress. This backdrop validates persistent demand for missile defense, counter-drone technology, ISR platforms, and deployable energy solutions across our portfolio.

Golden Dome Advances: The $151B SHIELD contract vehicle now includes over 2,400 qualified vendors. Midcourse interceptor solicitations posted in December are expected to yield awards shortly. $25B is already allocated to Golden Dome projects, with $5.6B directed specifically to space-based intercept capabilities. Anduril, alongside Northrop Grumman, Lockheed Martin, and True Anomaly, received initial boost-phase interceptor prototype contracts.

Defense Tech Funding Surge (Again): Defense tech VC deals reached $49.1B in 2025, nearly doubling from 2024. Manufacturing-focused investment rose to $4.7B across 39 deals. The emphasis is shifting from invention to execution, companies that convert facilities into repeatable output will capture both capital and contract velocity. Exits jumped to $54.4B from $18.2B the prior year.

Until Next Time

The convergence we've been tracking is accelerating. Iran tensions are proving the demand signal for everything from missile defense to deployable power. Defense tech funding nearly doubled in a single year, and our portfolio companies are passing milestones like Lewis Hamilton in the new Ferrari F1 car. Antares is months from criticality, Stoke just raised $860M, and Arbor is charting a path to gigawatt-scale production.

I'll be at Tectonic Defense in March, reach out if you'll be there.

Thank you for your continued support.

Regards,
Jordan Yashari
Founder & General Partner
Cyrus Ventures