The rapid evolution of drone technology has reshaped modern warfare, surveillance, and infrastructure security. Hidden Level Inc. recently secured $100 million in funding across two rounds, pushing its valuation to nearly $500 million. With backing from DFJ Growth and Lockheed Martin Ventures, the company is poised to scale its innovative passive radar technology—a system capable of tracking aerial threats without emitting a detectable signal.
Recent conflicts, such as in Ukraine and the Middle East, have demonstrated how small, inexpensive drones can wreak havoc on traditional military infrastructure. Beyond the battlefield, drones have been linked to criminal activities and domestic terrorism, including attempts to disable power grids. Hidden Level’s passive radar technology provides a critical solution by leveraging existing radio signals to track drones, making it undetectable to electronic countermeasures.
Hidden Level’s funding rounds were led by DFJ Growth, a firm known for its early investment in SpaceX, alongside Lockheed Martin Ventures. The startup has seen rapid growth, increasing its revenue from $5 million last year to a projected $25 million this year. The majority of its contracts are with the U.S. Army and Air Force, but commercial adoption is also increasing, accounting for 20% of revenue.
With fresh capital secured, Hidden Level is now focused on expanding manufacturing capacity and workforce development. Over the next 18 months, the company plans to increase its headcount from 100 to 160 employees and ramp up production of its latest generation of passive radar hardware and software solutions.
Hidden Level’s success is part of a larger trend: the increasing role of venture-backed startups in national security and defense technology. Historically dominated by legacy contractors, the defense sector is shifting toward innovation-driven startups. With a 10-year contract from the U.S. Army and broader adoption of drone detection systems, Hidden Level is positioned at the forefront of this transformation.
With $100 million in fresh capital, a $500 million valuation, and strong government backing, Hidden Level is poised to become a key player in the next wave of airspace security innovation. As global threats evolve, the role of private capital in defense modernization will only grow, and companies like Hidden Level are proving that the future of defense is being shaped by startups willing to push the boundaries of technology.