This past Monday, October 20, 2025, The Wall Street Journal ran an article on page A18 titled “Global Startups Race to Develop Systems to Fight Drone Threats,” which got my attention. Up to now, my investments have been on the delivery side in such companies as AIRO, DPRO, SPAI, RCAT, & UMAC. Overall, in a short period, these stocks have produced decent market returns. The lead sentence in the cited article states, “Startups from Silicon Valley to Europe and beyond are racing to develop cheap, reliable systems to counter hostile drones (that) appear over airports and global shipping lanes far from the battlefield in Ukraine.”
Can you smell the investment opportunities? I can and did. I turned to Perplexity with the following prompt and results:
Prompt: Small new startups publicly traded in the anti-drone sector.
Several small, publicly traded startups are emerging in the anti-drone (counter-UAS) sector in 2025, focusing on detection, jamming, and AI-driven defense solutions for both military and civilian markets. These firms stand out for their niche technologies and relatively low market capitalization compared to major primes.
Small Publicly Traded Anti-Drone Companies
| Company | Exchange / Ticker | Headquarters | Key Technology Focus | Notable Developments |
|---|---|---|---|---|
| DroneShield Ltd | OTCMKTS: DRSHF | Sydney, Australia | RF and radar-based detection, jamming rifles (DroneGun Mk4), AI-driven DroneSentry fusion system | Recent $32 million Asia-Pacific defense contract; active field use in Ukraine exoswan+1 |
| Dedrone Holdings | Private (seeking listing) | U.S. / Germany | AI-based and sensor fusion counter-UAS networks | Recently integrated with U.S. federal and airport defense systems; potential IPO candidate marketsandmarkets+1 |
| Ondas Holdings | NASDAQ: ONDS | U.S. | Wireless data and counter-drone communications tech via subsidiary Airobotics | Expanding presence in Israel’s anti-drone urban defense systems theglobeandmail |
| Red Cat Holdings | NASDAQ: RCAT | Puerto Rico, USA | Small tactical drones and anti-UAS integration | Works with U.S. DoD and public safety clients, expanding into counter-UAS software fusion theglobeandmail |
| ZenaTech | NASDAQ: ZENA | U.S. (Defense startup) | AI-based radar and jamming solutions for battlefield use | Identified as one of the fastest-growing drone-defense equities in 2025 theglobeandmail |
Private Startups Poised to Go Public
Some defense-focused startups are not yet listed but are considered potential IPO candidates or acquisition targets:
- Aurelius Systems – specializes in smart radar for small UAV interception.militarystartups
- BlueHalo – works on directed-energy and C-UAS systems; may pursue public listing after latest funding round.militarystartups
- Epirus – developer of high-power microwave counter-drone systems, noted for rapid DoD prototype adoption.militarystartups
- Guardian RF – passive RF-based detection, funded through Y Combinator, potentially seeking future listing.ycombinator
Market Drivers
According to MarketsandMarkets, the anti-drone sector will grow from $4.48 billion in 2025 to $14.5 billion by 2030, a 26.5% CAGR, driven by AI-enabled tracking, radar fusion systems, and increased defense spending in the Americas region.marketsandmarkets
For investors, DroneShield (DRSHF) and Ondas (ONDS) are the leading small-cap public equities in this niche, while Dedrone, Epirus, and BlueHalo remain top private contenders likely to influence the market soon.
Based on this analysis, I bought 500 shares of DRSHF & 100 shares of ONDS. Wish me luck!
- https://exoswan.com/military-drone-stocks
- https://www.marketsandmarkets.com/Market-Reports/anti-drone-market-177013645.html
- https://ensun.io/search/anti-drone/united-states
- https://www.theglobeandmail.com/investing/markets/stocks/DPRO/pressreleases/35585343/with-a-35555-billlion-opportunity-these-drone-stocks-should-see-higher-highs/
- https://www.militarystartups.pro/top/antidrone/
- https://www.ycombinator.com/companies/industry/drones
- https://www.levelfields.ai/news/best-drone-stocks-drone-industry-report-2025
- https://www.reuters.com/business/aerospace-defense/small-us-defense-stocks-soar-rush-next-gen-battlefield-tech-2025-09-18/
- https://money.usnews.com/investing/articles/best-drone-stocks-to-buy
- https://www.thedronegirl.com/2025/08/25/drone-startups-in-2025/
- https://www.bloomberg.com/features/2025-tech-defense-startups-to-watch/
- https://finance.yahoo.com/news/anti-drone-market-trends-forecasts-091300347.html
- https://thedefensepost.com/2025/06/13/drone-companies-ranking-2025/
- https://themesetfs.com/insights/defense-stocks-3-companies-specializing-in-missile-and-drone-defense
- https://www.seedtable.com/best-drones-startups
- https://www.nasdaq.com/articles/top-drone-technology-stocks-keep-eye-robust-returns
- https://www.marketsandmarkets.com/ResearchInsight/anti-drone-market.asp
- https://assets.kpmg.com/content/dam/kpmgsites/sa/pdf/2025/emerging-trends-for-a-and-d.pdf.coredownload.pdf
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