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Melbourne-based defence tech company Arkeus has secured $5 million in an oversubscribed round that included support from existing investors Main Sequence, Salus Ventures and Beaten Zone Venture Partners.
Founded in 2020 by Simon Olsen and Jonathan Nebauer, Arkeus is developing AI-powered hardware for autonomous drones and aircraft, designed to give customers the ability to ‘see’, understand and act on their environment in real-time.
All three arms of the Australian Defence Force have been using the company’s technology, with the systems being integrated into more than six defence platforms over the last 12 months.
The latest capital injection comes more than a year after the company raised $4.45 million in a seed round, which enabled the firm to scale the manufacturing of its hyperspectral optical radar (HS-OR) technology.
“As the recognised leader in autonomous optical systems, Arkeus is seeing a 10x increase in demand for its capabilities. This funding allows Arkeus to rapidly expand manufacturing capacity to get systems into its customers’ hands, faster,” Olsen said.
“This funding injection reflects renewed confidence in Australian capability. This strength, in conjunction with the welcomed government modification to the definition of an “Australian” business, provides the foundation necessary for Arkeus to grow its contribution to the success of AUKUS Pillar 2.”
Arkeus has successive contracts with the Australian Army, Royal Australian Navy and the Royal Australian Air Force. The company's technology can be used on both piloted and unmanned aircraft and surface vehicles and improves performance by allowing operations to continue even when there's interference or attempts to stop them.
“Main Sequence is proud to continue its support for Arkeus as it scales its groundbreaking autonomous optical systems,” Sequence investment manager Alezeia Brown said.
“Arkeus’s fusion of advanced optics, AI, and edge processing is proving invaluable across multiple defence platforms, and Main Sequence is excited to back its expansion as it meets the growing demand for its technology in Australia and internationally.”
Salus Ventures co-founder and general partner Dan Bennett said the firm is delighted to support the multidisciplinary team at Arkeus.
“With governments and the dual-use sector in AUKUS nations bringing sustained focus to bear on Pillar 2, Arkeus is well-positioned to support the accelerated customer demand,” Bennett added.
“Salus Ventures is pleased to support this latest funding round, which will propel Arkeus into new geographies, and looks forward to continuing to activate its deep global network in support of this aim.”
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