Arkeus banks $25M Series A as its drone sensors win Pentagon contracts - Startup Daily
AI Analysis
Australian defense tech startup Arkeus has secured $25 million in Series A funding led by QIC Ventures to scale production of its hyperspectral imaging sensors for drones. These sensors, paired with onboard AI, enable real-time object detection and tracking, and have already won contracts with the US Department of Defense and integration with major drone manufacturers. The funding will support a new manufacturing facility in Queensland and expanded support for Australian Defense customers.
Key Takeaways
- Arkeus raised $25M in Series A funding at a $100M valuation.
- The company develops hyperspectral imaging sensors with onboard AI for real-time object detection.
- Arkeus has secured contracts with the US Department of Defense, competing against US-based companies.
- Their sensors are integrated with drones from AeroVironment, Textron, Tekever, and Insitu (Boeing).
- Funding will be used for a new manufacturing facility in Queensland, Australia, and expanded customer support.
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 a growing demand for advanced sensor technology and highlights the potential for international collaboration in defense innovation. This represents a shift towards software-defined drones and reduced reliance on human input in critical operations.
Arkeus banks $25M Series A as its drone sensors win Pentagon contracts - Startup Daily
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Arkeus banks $25M Series A as its drone sensors win Pentagon contracts
May 18, 2026 2 min read
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Arkeus founders Dr Jon Nebauer and Simon Olsen
Melbourne defence tech startup Arkeus has raised $25 million at a $100 million valuation in a in 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.
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.
“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.
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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, picked by the Australian Department of Defence. Image: supplied
This extends QIC Ventures’ run of recent Queensland-flavoured deals.
Last week the government-owned investor led a US$11 million Series A for Brisbane’s ProcurePro, and earlier this year committed $130 million via a mandate with Brisbane syndicate TEN13.
QIC Ventures Investment Director Nick Capell framed the bet around the structural shift from human-piloted to software-defined drones.
“We’re seeing defence move toward software-defined,