Neros closes Series B, secures a big contract as drones dominate

As the US Army continues to transform for a war that most hope will never happen, it has started investing in FPVs, which is giving investors the confidence to back companies like Neros. 

Neros, a Los Angeles-based manufacturer of First-Person View (FPV) drones, has completed a significant $75 million Series B funding round, underscoring the escalating investment appetite for Western-based defence technology, particularly in the realm of unmanned aerial systems (UAS).

The capital injection, led by venture capital powerhouse Sequoia Capital with support from existing backers Vy Capital US and Interlagos, brings Neros’s total fundraising to over $120 million, the November 10th press release explains. The move is a stark indicator of the perceived urgency to establish a secure, “China-free” drone industrial base outside of Asia.

The announcement comes on the heels of major contract wins that validate Neros’s strategy, most notably its selection as a key supplier of FPV drones for the US Army’s Purpose-Built Attritable Systems (PBAS) program. This follows a “large drone purchase” by the US Marine Corps, highlighting the rapid institutional adoption of cost-effective, and consumable UAS platforms, a capability gap exposed by the conflict in Ukraine.

• 4th March – Neros supplies Archer FPV to USMC and Ukraine – Calibre Defence 
• USMC launches Marine Corps Attack Drone Team – Calibre Defence
• Russian FPV drone tactics – Calibre Defence  

Shaun Maguire, partner at Sequoia Capital, captured the sentiment, noting: “Neros is one of the fastest companies in history to be awarded meaningful defence contracts. It shows how mission critical FPV drones are.”

The scale of the funding suggests investors are treating drone manufacturing as a strategically vital, high-throughput industry, akin to traditional weapons production but with a digital-age velocity. The new capital is earmarked to “massively scale the production” of the company’s flagship Archer/Archer Strike platforms and associated Ground Control Systems.

Reshoring the Supply Chain

Crucially, Neros intends to deploy the funds to deepen its vertically integrated manufacturing approach, focusing on insourcing key production steps and strengthening its domestic supply chain. This is a direct response to geopolitical concerns surrounding reliance on foreign, and specifically Chinese, components.

“Our Series B fundraise represents the culmination of more than two years of company growth, focused product development, and aggressive iteration based on real battlefield results,” stated Soren Monroe-Anderson, CEO of Neros. He added that the vision is about “reshoring an American drone industrial base.”

Calibre comment: Transformation in contact

• US Army orders $982 million worth of “Lethal Unmanned Systems” – Calibre Defence
• US Army pushes M-LRPSM through with new Lockheed contract – Calibre Defence
• US Army orders long-range reconnaissance drones – Calibre Defence   

The US Army is carrying out what it calls a transformation in contact, with the introduction of many new systems across its forces. This includes plenty of loitering munitions, including many orders with Avinc, beyond visual range missiles with Lockheed Martin, and new reconnaissance drones. Long-range missiles are being introduced and the force is seriously considering autonomous logistics platforms to support its operations in the Indo-Pacific. Whilst drones and FPVs are dominating much of the conversation in defence, it is important to remember that conventional platforms remain at the centre of how most western forces plan to fight. Complex high-end strikes led by F-35s, fights for air dominance, and anti-submarine warfare will all be dominated by humans, despite the planned introduction of autonomous systems in all three missions. 

By Sam Cranny-Evans, published on November 11th, 2025. The lead image is a collage showing Neros capabilities as well as some of its investors. Credit: Neros.