Bone AI, a Seoul and Palo Alto-based startup founded by MarqVision co-founder DK Lee, has secured $12 million in seed funding led by Third Prime with participation from Kolon Group, a South Korean industrial conglomerate specializing in advanced materials and manufacturing. The company is developing next-generation autonomous aerial, ground, and marine vehicles for defense and government applications, with an initial focus on defense-focused drones designed for logistics support, wildfire detection, and counter-drone operations.

What makes this funding round particularly notable is founder DK Lee’s personal commitment of approximately $1.5 million,more than 10% of the round,demonstrating his deep conviction in the mission. The startup has already shown impressive traction, generating $3 million in revenue and landing a seven-figure government contract in its first year of operation.

Challenging Asia’s Defense Giants with Physical AI

Bone AI enters a market where Asia has yet to see the same level of defense-tech startup adoption as the U.S., where Anduril commands a valuation north of $30 billion, or Europe, where Helsing raised funding at around $13 billion. Lee’s vision extends beyond traditional defense contracting,he positions Bone AI as a “physical AI” company building the industrial infrastructure that enables intelligent machines to operate at scale.

The company’s strategy leverages South Korea’s proven manufacturing excellence, drawing parallels to how Hyundai, Samsung, and LG became global hardware powerhouses. Lee’s mission is to build the supply chain for physical AI within South Korea, then expand that capability to the U.S., Europe, and other allied countries. The startup has already implemented an aggressive acquisition strategy, having purchased South Korean drone company D-Makers just six months after launch to integrate existing AI models with established robotics hardware and intellectual property.

Strategic Timing in a Growing Defense Market

The funding comes at an opportune moment as South Korea strengthens its position in the global defense market. The country has become increasingly important as a supplier to NATO members through the EU-South Korea Security and Defence Partnership. Bone AI’s approach of combining Silicon Valley innovation with Korean manufacturing prowess aims to fill a notable gap in Asia’s defense-tech ecosystem.

The company’s rapid progress,from zero to millions in revenue within months, suggests its “buy versus build” acquisition strategy is delivering results. With the new capital, Bone AI plans to accelerate research and development, advance flight testing and certification, and scale up manufacturing capabilities. The startup has already been selected for a South Korean government-backed logistics program that will deploy UAVs and ground vehicles powered by its autonomy platform at scale.