May 2026 Edition

May was a momentous month in the defense tech world. Anduril closed the largest defense tech venture round in history, the U.S. Space Force named the 12 companies building the Golden Dome architecture (we now have positions in two of them), and the U.S.-Iran ceasefire moved from fragile to nearly final with a peace framework taking shape around the Strait of Hormuz reopening. International capital is pouring into U.S. defense tech in a structural shift of how the category is perceived.

For deeper analysis on the industry, my Substack Investing in Organized Chaos continues to publish on these themes. Recent posts have covered turbine backlogs, attritable engine needs, and the defense supply chain. Each piece connects directly back to where we invest and how Cyrus is positioned.

Portfolio Spotlight

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

Arbor Energy

Arbor continued advancing its 1MW ATLAS pilot. The company was selected by the Department of Energy for the Carbon Negative Shot pilot program, deploying ATLAS as a Carbon Removal and Storage demonstration designed to permanently remove 50k to 70k metric tons of CO2 per year at scale. With Nishad Pai now having joined as the Chief Commercial Officer, the team is actively negotiating hyperscaler contracts against the GridMarket framework announced in March.

Icarus

Icarus continued advancing its stratospheric flight test campaign. They’re currently executing against a 12 month SOCOM pilot contract and are in preparation for a formal U.S. Army demonstration scheduled for August 2026. The company has been heads down and hard at work as they work towards this demonstration.

Volund Manufacturing

Volund continues to scale manufacturing operations following their AS9100 certification. CEO Eric Hostetler appeared on the Black Flag fund’s podcast this month to discuss scaling production post-certification and deepening defense prime contractor relationships. The macro environment is continuing to compound in Volund’s favor with the U.S. facing a projected 7,000 unit turbojet engine deficit in 2026 alone.

Investment Opportunities & Updates

Our SPV positions continue to demonstrate significant momentum:

Anduril Industries

Three landmark milestones occurred this month. Most importantly the company officially closed their $5B Series H round at a $61B post-money valuation co-led by Thrive and Andreessen Horowitz. This is the largest defense tech venture round in history, doubling the company’s valuation from $30.5B in June 2025. Their total funding raised is now in excess of $11B.

If that wasn’t enough on May 13, Anduril signed a framework agreement with the Department of War to deliver a minimum of 3,000 cruise missiles to the Army at a minimum cadence of 1,000 units per year. Their first deliveries are scheduled for the first half of 2027. To secure propulsion, Anduril also deployed $75M of private capital to stand up its own solid rocket motor facility in Mississippi.

Lastly, on May 4th Anduril publicly named its Golden Dome Space Based Interceptor Team, with Impulse Space (also one of our investments) confirmed as a named subcontractor alongside Inversion Space, K2 Space, Sandia National Labs, and Voyager Technologies. Anduril and Palantir are also collaborating on Golden Dome’s command and control software layer, with software trials targeted for this summer.

Antares Nuclear

Antares continues to execute on their path to Mark-0 first criticality at Idaho National Laboratory. Following their Documented Safety Analysis approval last month, the program is now in the DOE Readiness Review phase, the last administrative gate before reactor startup. CEO Jordan Bramble has publicly stated that the team holds a comfortable margin against the July 4th criticality target. The DOE Reactor Pilot Program is targeting at least three advanced reactor criticality events by Independence Day, and Antares is among the leading candidates to be first.

Chaos Inc.

Chaos’ VANQUISH system has now reached TRL-9 designation. Their distributed network architecture enables the detection and tracking of unmanned aerial systems, aircraft, and missile threats up to 10 minutes faster than traditional radars at ranges up to 250 km. Following their inclusion in the U.S. Army’s G-TEAD Marketplace, Chaos is maintaining an active on-site presence with deployed units across NATO partners to provide training, integration, and rapid software updates based on operator feedback and real world events.

Critical Loop

Following their closed Series A, Critical Loop has accelerated their commercial development. The company deployed approximately 50 MWh of microgrids in 2025 and is on track to deploy up to 100 MWh in 2026. Active projects now include a permanent 4 MWh storage installation at the San Diego International Airport, a 30 MWh movable fleet for utility emergency outages, and a partnership with Terawatt Infrastructure to manage grid load limits at EV fleet charging hubs. Critical Loop is also one of the first companies positioned to capitalize on CPUC’s February 2026 mandate directing SoCal Edison and PG&E to file “flexible service connection” tariffs. A policy shift that formally allows behind the meter microgrids to bypass traditional substation queues. Expansion into other grid-constrained regions is now underway.

Gitai - Our Latest Investment

Cyrus is pleased to announce our latest investment into Gitai. Gitai is a space robotics company headquartered in Torrance California, led by CEO Sho Nakanose. The company builds vertically integrated robotic systems for in-orbit servicing and lunar surface infrastructure construction.

On May 4th, Gitai confirmed its selection by the U.S. Space Force Space Systems Command as one of 12 prime contractors for the Space Based Interceptor (SBI) program under Golden Dome. This same $3.2B contract pool includes Anduril, Lockheed Martin, Northrop Grumman, Raytheon, SpaceX, and others. We are thrilled to be able to support an incredible team actively shaping the future of space.

Hemispheric AI

Hemispheric continues operating in stealth. The broader non-invasive BCI category is advancing rapidly as closed-loop systems transition from research-grade prototypes to FDA-reviewed clinical pathways. We expect emergence on the company's own timeline.

Impulse Space 

Impulse was confirmed as a named subcontractor on Anduril’s Golden Dome SBI team. This is a meaningful contract validation extending beyond the company’s civil space pipeline. Their VICTUS SURGO mission will be the first orbital operation of the Helios kick stage, and is targeted for this year on a SpaceX Falcon 9. Their newest Rigel engine continues to have regular hot fire testing at their Mojave facility.

Stoke Space

Stoke continued progressing toward Nova’s first launch from Cape Canaveral Launch Complex 14. As of this month the Nova rocket structure is now visible in the horizontal bay at their launch complex which is meaningful hardware progress at the site. Their Stage 1 structure shipped to Moses Lake on May 13th and the Zenith engine testing cadence has continued through this month. The company is still on track for their first launch this year.

Team & Strategy

Cyrus is pleased to welcome Elijah Nasseri to the team as our summer intern. Elijah will be supporting deal sourcing, portfolio research, and operations as we continue to scale through 2026. Please feel free to reach out and connect.

Market Insights

SpaceX Files for the Largest IPO in History

One announcement dominated the markets this month, on May 20th SpaceX publicly released its S-1 filing, formally setting the stage for a Nasdaq listing under the ticker SPCX. Reported valuation range is $1.75T-$2T, with a target raise of $40-$80B and a trading debut expected in mid-June. Twenty-three underwriters are leading the deal including Goldman Sachs, Morgan Stanley, Citigroup, JP Morgan, and BofA.

Defense tech and space infrastructure are no longer an emerging category looking for institutional validation, but now are an implicit foundational pillar of the public markets. SpaceX is one of the largest Golden Dome SBI awardees and operates in close adjacency to portfolio companies Impulse Space and Stoke Space. The market is now pricing the entire stack at scale, launch, propulsion, satellite communications, defense services, and orbital logistics. The capital appetite that was building privately is about to test itself publicly.

International Capital is Reshaping the Defense Cap Table

The structural shift in 2026 is no longer just hyperscalers funding nuclear or the federal government funding manufacturing. It’s allied capital, sovereign wealth funds and government investment vehicles, all actively underwriting U.S. defense and dual-use technology.

The U.S.-Japan strategic investment tranche announced in March includes co-production planning for missiles and interceptor production in Japan, and a $40B GE Vernova Hitachi commitment for small modular reactor plants in Alabama and Tennessee. South Korea announced a government initiative supporting 100 defense focused startups by 2030. The EU’s €800B SAFE program is driving European purchases of U.S. defense tech at scale. Gulf sovereign wealth funds deployed $25B globally in Q1 2026 despite the Strait of Hormuz disruption.

Iran Ceasefire Moves Toward Peace Framework

This month, President Trump publicly stated that a deal with Iran has been “largely negotiated” with the Strait of Hormuz reopening as a central pillar. This follows coordinated discussions with Saudi Arabia, UAE, Qatar, Turkey, Egypt, Bahrain, and Israel. Iranian foreign ministry officials acknowledged “narrowing differences.” Brent crude dropped 5% upon the announcement as peace optimism took hold, though prices remain ~30% above pre-conflict levels.

The munitions consumption picture from the war is now clearer and underscores the multi-year replenishment opportunity. The U.S. fired over 1,000 Tomahawks, 1,100+ JASSMs, 40-70 Precision Strike Missiles, 1,000+ Patriot interceptors, and up to 290 THAAD interceptors. CSIS estimates replenishment timelines run roughly 3.5-4 years for these systems.

Until Next Time

May 2026 will be remembered as the month defense tech and the public markets formally collided. A $5B venture round at a $61B valuation. A $3.2B contract pool with two portfolio names inside it. A peace framework taking shape in the Middle East. A second sovereign capital wave from allies underwriting the architecture. The convergence of defense production and energy infrastructure isn't aspirational anymore, it's the dominant story in private markets.

If you're in LA, reach out. Always happy to connect.

Regards,
Jordan Yashari
Founder & General Partner
Cyrus Ventures