Vector secures $20M loan to expand US drone production

A defense startup founded by former special operations personnel is ramping up its push into the fast-growing military drone market. Utah-based Vector says it has secured a $20 million loan from JPMorgan Chase to expand domestic manufacturing as demand grows for American-made small drones used by military and law enforcement agencies.

The funding comes just months after the company closed a $61 million Series A round in September 2025, led by investors including Pelion Venture Partners, Lightspeed Venture Partners, and Point72 Ventures. Together, the financing signals increasing investor interest in companies building US-manufactured drone systems, particularly as policymakers and defense planners push to reduce reliance on foreign supply chains.

Scaling drone manufacturing in the US

Vector says the new capital will help scale production at its manufacturing facility in Utah, strengthen domestic supply chains, and expand inventory purchases needed to meet rising demand. The company focuses on small unmanned aerial systems (sUAS) designed for military missions and national security operations. These systems are typically smaller, more portable drones that can be deployed quickly in tactical environments.

Vector CEO and co-founder Andy Yakulis says the loan is part of a broader push to rebuild US drone manufacturing capacity. “The debt we’ve secured from JPMorgan is a significant step toward realizing our shared vision… to achieve American drone dominance,” Yakulis says.

Vector’s strategy centers on producing lower-cost drones that can be manufactured at scale while remaining secure from supply-chain vulnerabilities. Among the platforms the company is developing are “attritable” one-way drone systems — a category of unmanned aircraft designed to be expendable during missions. These types of drones have become a key focus in modern military planning, where large numbers of inexpensive systems can overwhelm defenses or perform reconnaissance in high-risk environments.

Vector says its aircraft are designed and manufactured in the United States with an emphasis on compliant supply chains and production processes capable of quickly moving from prototype to operational deployment.

Growing demand for US-made drones

Vector’s expansion reflects a wider trend across the US defense sector. As drones play an increasingly central role in modern warfare — from reconnaissance to strike missions — government agencies are pushing to expand domestic manufacturing capacity. Companies that can produce secure, scalable, and relatively inexpensive drone systems are likely to see rising demand from both military and law enforcement customers.

Vector’s advantage is that it was founded by former special operations personnel and defense technology experts who leveraged lessons learned from real-world combat environments. That background shapes Vector’s emphasis on operator-driven design, meaning the systems are developed with direct input from military users.

Beyond drones themselves, Vector also works on counter-UAS services and sensor integration, aiming to provide broader situational awareness capabilities for defense and security agencies.

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