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Ukraine war experience propels US drone startup toward Pentagon contracts

Rod Chang, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: Neros

Neros Technologies, a drone startup founded in 2023, has transformed battlefield insights from Ukraine into a strategic advantage for securing US military contracts, positioning itself as a key supplier for the Pentagon's future low-cost drone arsenal.

The company's co-founder and CEO, Soren Monroe-Anderson, recognized early that small, inexpensive attack drones would prove critical in modern warfare, even when US military demand for first-person view drones remained minimal. Field visits to Ukraine validated this thesis and shaped Neros' development priorities around production scalability, supply chain resilience, and rapid iteration capabilities.

Backed by prominent investors including Peter Thiel and Sequoia Capital, Neros established a 15,000-square-foot Los Angeles facility and restructured its supply chain to eliminate Chinese components, ensuring compliance with Defense Department procurement requirements. The company maintains an operational presence in Ukraine to continuously refine its systems based on combat feedback.

The strategy is delivering results. In February 2025, Neros secured a contract through the International Drone Coalition to deliver 6,000 drones to Ukraine within six months, among the largest known orders awarded to a US supplier. Two-thirds will support Ukrainian forces, while 500 units will serve the US Marine Corps, Army, and Special Operations Command.

Neros stands as one of only two first-person view drone manufacturers approved by the Defense Innovation Unit that meet Pentagon supply chain standards, specifically prohibiting critical Chinese components. Beijing responded by sanctioning Neros alongside 12 other US defense companies in December 2024.

Monroe-Anderson targets a monthly production capacity of 10,000 drones by year-end, with long-term plans for a facility capable of producing one million drones annually to serve the Defense Department. He characterized such production capacity as "absolutely necessary" for US defense preparedness in future conflicts.

The Pentagon's appetite for drone technology has shifted dramatically over the past year, with Monroe-Anderson describing current demand as "quite active"—a stark contrast to the limited interest when Neros launched. The company's progression from startup to conducting live-fire demonstrations for senior military leadership within 12 months reflects the accelerated timeline driving defense procurement in the drone sector.

Article edited by Jack Wu