Los Angeles-based defense startup Hermeus has raised a staggering $350 million, propelling its valuation to a billion dollars. The funds will accelerate the development of what CEO AJ Piplica calls 'the fastest unmanned aircraft,' designed to navigate at hypersonic speeds.

The round, led by Khosla Ventures, sees major investors like Canaan Partners and RTX Ventures join hands with new players such as Cox Enterprises and Destiny Tech100. Hermeus’ decision to work with Pratt & Whitney on its engine development has put it on a faster track, focusing now on diversifying rather than aiming for one big goal.

With two successful test flights under their belt, Hermeus is pushing the boundaries of aviation technology. The startup’s rapid prototyping approach mirrors that of SpaceX, but unlike Elon Musk's company, Hermeus faces the uniquely challenging task of cultivating talent in a niche field where few companies are building aircraft on an annual basis.

The new funding will help Hermeus expand its staff to nearly 300 employees and continue testing. Piplica asserts that failure is part of the process, but it’s how you manage risk that sets you apart.