Drone AI startup Arkeus raises $25 million
AI Analysis
Australian drone AI startup Arkeus has secured $25 million in Series A funding led by QIC Ventures, valuing the company at $100 million. The funding will be used to establish a manufacturing facility in Queensland and expand support for Australian Defence customers. Arkeus specializes in hyperspectral imaging sensors and onboard AI for real-time object detection and tracking, already integrated with major drone platforms.
Key Takeaways
- Arkeus raised $25 million in a Series A round, with a post-money valuation of $100 million.
- The company develops hyperspectral imaging sensors paired with onboard AI for drone-based object detection.
- Arkeus’ systems are compatible with drones from AeroVironment, Textron, Tekever, and Insitu.
- The company is winning contracts with the US Department of War, competing against US-based firms.
- Funding will support a new manufacturing and sustainment facility in Queensland, Australia, and local support for Australian Defence.
Why It Matters
Arkeus’ technology addresses a critical need for improved drone-based intelligence, surveillance, and reconnaissance (ISR) capabilities, particularly in reducing false positives and enabling autonomous operation. The company’s success in securing US DoD contracts demonstrates the competitiveness of Australian defense technology and signals a potential shift in the counter-UAS and broader drone technology market. Expansion of manufacturing in Australia strengthens domestic defense industrial capacity.
Drone AI startup Arkeus raises $25 million
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Drone AI startup Arkeus raises $25 million as valuation skyrockets to $100 million
The Series A funding will go towards a Queensland-based manufacturing and sustainment facility, plus a local team to service Australian Defence customers in the region.
May 19, 2026 2 min read
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L-R: Arkeus co-founders Dr Jon Nebauer and Simon Olsen. Image: Supplied
Melbourne defence tech startup Arkeus has raised $25 million at a $100 million valuation in a Series A round led by QIC Ventures.
The round drew new investors R+VC, Folklore Ventures, and Dyne Ventures alongside existing backers Main Sequence Ventures, Salus Ventures and Steve Baxter’s Beaten Zone Venture Partners.
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According to Dealroom, the post-money valuation lands at around $100 million — roughly seven times what the company was worth at seed two years ago.
Arkeus was founded in a Melbourne one-car garage in 2020 by CEO Simon Olsen and aerospace engineer Dr Jonathan Nebauer, after they watched drone operators struggle with false positives while hunting drug operations in Colombia.
The company builds hyperspectral imaging sensors paired with onboard AI, so that drones and other autonomous platforms can detect and track objects in real time.
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“Modern defence is moving toward systems that can operate and make decisions in real time, without relying on constant human input or vulnerable data links,” Olsen said.
Arkeus’ systems are already integrated with drones from AeroVironment, Textron, Tekever and Boeing subsidiary Insitu. It’s even winning US Department of War contracts, beating US-based incumbents on home soil.
The Series A money is going into a Queensland-based manufacturing and sustainment facility, plus a local team to service Australian Defence customers in the region.
“This capital allows us to scale manufacturing and get capability into the field faster, while expanding across a broader set of platforms and customers,” Olsen said.
The Arkeus HSOR warden, sitting front and centre on an Insitu Pacific Integrator, was picked by the Australian Department of Defence. Image: supplied
This extends QIC Ventures’ run of recent Queensland-flavoured deals.
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Last week, the government-owned investor led a$15 million Series A round for Brisbane’s ProcurePro, and earlier this year comm