Y Combinator backs its first defense startup, Ares Industries

Y Combinator’s first defense startup, Ares Industries, launched earlier this week.

In a post on the YC website, the startup outlined a vision for building low-cost cruise missiles that would be compatible with existing launch platforms, saying it would provide “capabilities that [Department of Defense] “We want that in a form factor that’s 10 times smaller and 10 times cheaper.”

Ares Industries was founded by Devan Plantamura and Alex Tseng, who said they have tested prototypes in the Mojave Desert and plan to deliver working missile systems to their first customers in mid-2025.

“We believe our approach to anti-ship cruise missiles can help address the ammunition shortages facing the United States,” he wrote. “At Ares, we would never want war to happen. But by helping to rebuild our defense industrial base, we can ensure the United States is prepared to prevent conflict and save countless lives.”

YC partner Jared Friedman told the FT that the incubator began encouraging defense tech startups to apply earlier this year.

While defense-based startups are relatively rare in Silicon Valley, YC CEO Garry Tan was an early employee of data analytics company Palantir, which has become hugely successful through its sometimes controversial work for the U.S. military as well as other governments and agencies. CEO Alex Karp recently told The New York Times that he was “not going to apologize” for Palantir’s work and instead defended the company’s “consistently pro-Western approach.”