Perseus Defense builds $10K counter-drone missiles to fill gap between Patriot and short-range systems
Sep 10, 2025 with Jason Cornelius
Key Points
- Perseus Defense is selling counter-drone missiles for under $10,000 per shot, undercutting Raytheon's $250,000 Coyote system while targeting the mid-range gap between short-range autocannon and $10 million Patriot missiles.
- The startup ran five design iterations and launched over 30 missiles during its 10-week YC batch, demonstrating a fire-and-forget thermal seeker system light enough for soldiers to carry in 25-missile pods.
- Perseus is bypassing traditional SBIR grant cycles by briefing multiple Pentagon offices, working with Fort Hood's First Cavalry Division for field testing, and building a pipeline of DoD supporters ahead of demo readiness.
Summary
Perseus Defense is building 16-inch surface-to-air missiles designed to shoot down drones at roughly half a mile range for under $10,000 per shot. Co-founder Jason Cornelius started the company, which is currently in the YC batch.
The cost advantage drives the pitch. Raytheon's Coyote, one of the better counter-drone solutions available, costs $250,000 per intercept. The drones being shot down typically cost $1,000. Perseus targets sub-$10,000 per missile, which does not eliminate the cost asymmetry but narrows it dramatically.
The mid-range gap
Existing counter-drone options cluster at the extremes. Electronic warfare and GPS jamming are being defeated by fiber-optic-guided drones. Directed-energy weapons are expensive, heavy, and immobile. Short-range systems like autocannon solutions work close in. Patriot-class missiles cost $10 million per shot and are built for threats ten miles out. Perseus is filling the space between those two layers.
The missile uses an onboard thermal seeker with all compute integrated, making it fire-and-forget. At roughly one pound each, 25 missiles fit in a pod weighing around 30 pounds, light enough for a soldier to carry. Perseus has demonstrated the system mounted on unmanned vehicles provided by Navy SEALs.
Testing and iteration
During the 10-week YC batch, the team ran five major design iterations and launched over 30 missiles, testing every two weeks at an undisclosed location outside San Francisco. The first YC check funded a Ford Expedition to haul missiles to test sites.
Pentagon engagement
Perseus is pursuing multiple DoD entry points rather than waiting on a single SBIR grant cycle. Cornelius brought missiles into the Pentagon three weeks ago to brief two offices, is working with the First Cavalry Division at Fort Hood for field feedback, and is engaged with the DoD science and technology community. The company has built a pipeline of supporters waiting for demo-ready status rather than active contracts in hand. The founders point to Saronic, the autonomous naval vessel company, as the growth model they are trying to replicate.