Bone AI just secured $12 million to take on Asia's $69 billion defense establishment with AI-powered robotics. The Seoul-based startup is already generating $3 million in revenue and landing seven-figure government contracts - all within its first year. Founded by MarqVision co-founder DK Lee, Bone represents a rare challenger to South Korea's manufacturing giants in the nascent defense-tech space.
South Korea's defense giants are sitting on $69 billion in order backlogs, yet virtually no startups have emerged to challenge them. That gap just got its first serious threat.
Bone AI closed a $12 million seed round led by Third Prime, with strategic investment from Kolon Group, to build what founder DK Lee calls a "physical AI" platform spanning autonomous drones, ground vehicles, and marine systems. The Seoul and Palo Alto-based startup is already pulling in serious revenue - $3 million in year one plus a seven-figure government contract - by moving fast and acquiring assets.
Lee's strategy is classic Silicon Valley meets Korean manufacturing prowess. Six months after launch, Bone acquired D-Makers, a local drone company, to instantly gain hardware IP and production capabilities. "Originally focused on AI models for robotics, Bone is now integrating its existing AI division with the newly acquired company, and more acquisitions are on the horizon," Lee told TechCrunch in an exclusive interview.
The founder put his money where his mouth is, personally committing $1.5 million - over 10% of the round. "That was important to me because I wanted to show both investors and my team that I'm fully invested, financially and emotionally, in this mission," he said.
This isn't Lee's first rodeo. His previous company MarqVision gave him deep AI experience, but also convinced him that the next frontier isn't digital - it's physical. After leaving MarqVision, he went full immersion mode: "going to robotics conferences like IEEE ICRA, cold-emailing the engineers behind Google RT-1/RT-2, and even walking up to Jim Keller, CEO of Tenstorrent, at a cafe."
Bone's timing couldn't be better. South Korea just became the second-largest arms supplier to European NATO members through the new EU-South Korea Security and Defence Partnership. Yet while Anduril commands a $30 billion valuation in the US and Europe's Helsing hit $13 billion, Asia's defense-tech startup scene remains practically nonexistent.
