November 2025 Edition

November delivered landmark validation across our portfolio and SPV positions as defense infrastructure moved from thesis to execution. Anduril’s selection for the Army’s next-generation counter-UAS fire control system displaced an incumbent prime contractor, while Chaos Industries’ $510M raise at $4.5B valuation marked a significant markup from our July position. The Pentagon awarded initial Golden Dome space-based interceptor prototype contracts, with Anduril among the recipients.

Meanwhile, hyperscalers deployed over $100B in Q3 datacenter capital expenditure alone, reinforcing the energy infrastructure bottleneck driving our Arbor and Antares investments. The convergence we’ve been positioning for isn’t theoretical—it’s generating contracts, valuations, and validation in real time.

Portfolio Spotlight

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

• Arbor Energy: Initial testing has begun on the company’s pilot system, moving them closer to their targeted December activation. The pilot represents a critical proof point for their fuel-flexible, zero-emission turbine technology as hyperscaler energy demands continue accelerating.

• Icarus: The company attracted notable new investors following their Y Combinator momentum, including Taro Fukuyama (founder of Fond, acquired; GP at Rise Capital). Fukuyama agrees with our thesis and is quoted saying that Icarus solves “a massive gap in our defense infrastructure”.

• Volund Manufacturing: The factory has nearly all new equipment installed as the team prepares for scaled production. Leadership is expanding to support the company’s next phase of development as they continue addressing the critical turbine production bottleneck in the U.S.

Investment Opportunities & Updates

Our SPV positions demonstrated significant momentum this month:

• Anduril Industries: November was transformational. The U.S. Army selected Anduril for the Integrated Battle Command System Maneuver (IBCS-M) program, establishing their Lattice software as the next-generation fire control platform for counter-UAS missions—displacing Northrop Grumman’s legacy system. Additionally, Anduril secured a $140M NNSA contract for counter-drone systems across four sites and received a $10M Golden Dome prototype contract for space-based interceptors alongside Northrop Grumman, Lockheed Martin, and True Anomaly. On top of it all, the company also announced a partnership with HD Hyundai Heavy Industries to build autonomous warships and announced their new product Omen.

• Antares Nuclear: CEO Jordan Bramble spoke at the SC Nuclear Summit, sharing Antares’ progress toward deployable microreactors. The team also completed their Electrically Heated Demonstration Unit (EDU), a key technical milestone on the path to their July 2026 critical demonstration.

• Chaos Inc.: The company raised $510M led by Valor Equity Partners, reaching a $4.5B valuation—a meaningful markup from our July position when we participated in their Series C at $2B. Antonio Gracias (longtime Musk business partner) joined the board. With Russia launching over 5,600 drones into Ukraine in September alone, Chaos Inc.’s distributed detection technology addresses an urgent operational need.

• Hemispheric AI: Our SPV in this non-invasive brain-computer interface (BCI) company has closed. The team is already seeing interest from prominent defense industry players for prospective partnerships, validating the dual-use potential of their technology platform.

• Impulse Space: The company unveiled comprehensive lunar cargo architecture in October, targeting 3-ton payload delivery to the lunar surface by 2028. This addresses a critical gap between NASA’s CLPS program (hundreds of kilograms) and Human Landing Systems (20+ tons), positioning Impulse for the missing middle tier of lunar logistics.

• Stoke Space: Cape Canaveral Launch Complex 14 construction has achieved remarkable progress. The flame trench, launch mount, umbilical tower, and propellant farms are complete. Lightning towers are taking shape with pad activation targeted for early 2026. VP of Launch Jonathan Lund noted it may be “the fastest pad build—from concept to operation—that anyone’s seen for this size of launch vehicle.”

Team & Strategy

November reinforced that our relationship-driven approach continues generating access beyond what capital alone provides. Portfolio companies secured not just funding but critical government selections, strategic partnerships, and investor validation from operators who understand the defense landscape.

The infrastructure thesis has moved from forward-looking to present tense. When hyperscalers deploy $100B+ quarterly on datacenters while defense primes lose fire control contracts to software-native entrants, the market is signaling where value creation will concentrate. We remain focused on the picks and shovels of this convergence.

Market Insights

November’s data validated the infrastructure convergence at the core of our thesis.

• Hyperscaler AI Infrastructure Race: Q3 2025 datacenter capital expenditure hit unprecedented levels as the major cloud providers compete to build AI capacity. Amazon led with $35.1B (raising full-year guidance to $125B), Microsoft deployed $34.9B (up 74% year-over-year), Alphabet invested approximately $23B (their third upward 2025 revision to $91-93B), and Meta contributed roughly $11B. Combined, the four majors are tracking toward $370-405B in 2025 infrastructure spending—nearly double 2024 levels. This capital intensity explains the urgency behind nuclear commitments and clean baseload solutions like Arbor’s technology.

• Golden Dome Moves from Appropriation to Execution: Following the $24.4B FY25 reconciliation appropriation, the Pentagon awarded initial prototype contracts in November. Space-based sensors ($7.2B) and boost-phase intercept systems ($5.6B) received the largest allocations, with non-kinetic defense, hypersonic countermeasures, and ground-based radar rounding out the funding. Anduril, Northrop Grumman, Lockheed Martin, and True Anomaly received initial $10M prototype awards, with a $340M prize pool for on-orbit test completion and production contracts potentially reaching $1.8-3.4B annually.

Until Next Time

As November closes and the year winds down, I want to wish everyone a warm Thanksgiving. Take time to enjoy family, reflect on what you’re grateful for, and recharge before the final push into year-end.

The momentum across new U.S. hardtech startups has exceeded expectations this year. I’m grateful for the trust our investors place in Cyrus Ventures and the exceptional founders building the physical backbone of American competitiveness.

Regards,
Jordan Yashari
Founder & General Partner
Cyrus Ventures