Source: Fortune
Summary
Allen Control Systems (ACS) raised $200 million in June for its Bullfrog anti-drone system, which can shoot down drones with bullets. The system is portable and scalable, with plans to increase production to thousands of units per month. The U.S. military is facing growing threats from low-cost drones, prompting a shift in procurement policies to support startups. ACS and others like Anduril and DroneShield are gaining traction, though concerns about a defense tech bubble persist. ACS reported $10 million in revenue in 2025, with projected revenue in the low nine figures for 2026.
Our Reading
The numbers tell one story.
ACS raised $200 million for a drone-killing system that fits on a Toyota Tacoma.
The military is shifting to startups after costly missile defenses.
Procurement changes now let the Army “buy and try” new tech.
Startups are growing fast, but investors should stay cautious.
Author: Evan Null
Drone Defense Gets a Tech Overhaul
The U.S. military is facing a growing threat from low-cost drones, especially in the Middle East, where Iran has used Chinese drones to target American forces. In response, the Department of Defense is changing how it buys technology, allowing startups to compete with traditional defense contractors. This shift is enabling companies like Allen Control Systems (ACS) to develop and deploy anti-drone solutions more quickly.
Startups Are Getting a Seat at the Table
New procurement policies, including online marketplaces like the Army UAS and C-UAS marketplaces, are giving startups a chance to supply the military. These platforms allow commanders to test and purchase technology from vetted vendors, bypassing the slow and bureaucratic acquisition process. This change is seen as a step toward modernizing the military’s approach to drone threats.
ACS Is Scaling Up Fast
Allen Control Systems (ACS) is ramping up production of its Bullfrog anti-drone system, which can shoot down drones with bullets. The company is currently manufacturing 10 units per week and plans to open new plants in Texas and Alabama to increase output to thousands per month. The system’s portability and scalability make it a promising solution for both military and civilian applications.
Investors Are Watching Closely
ACS reported $10 million in revenue in 2025, with projections of “low nine figures” for 2026. While the company hasn’t gone public, its shares are available on secondary platforms like Hiive and Forge. However, some analysts warn of a potential defense tech bubble, cautioning that not all startups will survive the current investment frenzy.
The Pentagon’s Drone Strategy Is Evolving
Retired Brigadier General Houston Cantwell criticized the Pentagon’s goal of producing 200,000 drones annually, calling it unrealistic. He believes the focus should be on building better drone defense systems instead. Recent procurement changes, like the C-UAS marketplace, are seen as positive steps, though the military’s acquisition system remains slow and inflexible.
