Australian defence technology company Arkeus has raised A$25 million in Series A funding to scale deployment of its AI-powered sensing systems and establish advanced manufacturing operations in Queensland.
Led by QIC Ventures, the raise saw participation from new investors R+ VC, Folklore Ventures and Dyne Ventures, with continued support from existing investors Main Sequence Ventures, Salus Ventures and Beaten Zone.
Arkeus develops sensing systems designed specifically for AI-driven autonomy, combining hyperspectral imaging with onboard artificial intelligence to enable platforms to detect, classify and track objects in real time, directly on the platform.
Unlike traditional systems that rely on human interpretation or remote processing, Arkeus enables platforms to understand their environment, even in degraded or contested conditions.
As demand grows for more capable intelligence, surveillance and reconnaissance (ISR) technology, Arkeus has already deployed systems with both the Australian and US Departments of Defence, and is integrated with major drone manufacturers including AeroVironment, Textron, Tekever and Boeing subsidiary Insitu.
Arkeus co-founder and CEO Simon Olsen said the Series A positions the company to move quickly as defence forces shift toward autonomous, sensor-driven operations.
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
Simon Olsen - Arkeus Co-founder & CEO
“We’ve built Arkeus from the ground up for that environment. Our systems process and interpret data on the platform itself, allowing autonomous systems to act in real time without relying on vulnerable communications links.
“This capital allows us to scale manufacturing and get capability into the field faster, while expanding across a broader set of platforms and customers. Establishing a manufacturing and engineering base in Queensland gives us the ability to scale alongside our customers and support long-term defence programs from within Australia and across the Pacific.”
QIC Ventures Investment Director Nick Capell said the investment reflects a structural shift in how defence capability is being built and funded.
We’re seeing defence move toward software-defined, autonomous systems where sensing and decision-making at the edge are critical
Nick Capell - QIC Ventures Investment Director
“Arkeus sits directly in that shift, delivering a step-change in how platforms perceive their environment and how quickly that translates into action.
“At QIC Ventures, our focus is on backing technologies that matter strategically, not just commercially. Arkeus is a clear example - a company with global demand that can be scaled from Australia, while strengthening sovereign capability at the same time.”
A key component of the deal is the establishment of a Queensland-based manufacturing and sustainment facility, alongside a local team supporting the Australian Defence customers in the region.
Arkeus has already secured the Australian Army Wide Area Airborne Surveillance Program aimed to enhance the sensing capabilities of its Tactical UAS fleet. It has also won contracts with the United States Department of War following competitive evaluations against US incumbents.
In a U.S. Department of Defence competitive evaluation, Arkeus’ sensing systems demonstrated the ability to detect targets up to eight times further than existing optical systems in degraded visual conditions.
