Defence Tech Funding, Government Sales Strategy Edition
Melbourne defence startup Arkeus closed A$25 million Series A at a A$100 million valuation, led by QIC Ventures. New investors R+VC, Folklore Ventures and DYNE Ventures joined existing backers Main Sequence, Salus Ventures and Beaten Zone.
The company builds hyperspectral imaging sensors with onboard AI for drones and autonomous military platforms. Founded in 2020 by CEO Simon Olsen and CTO Dr Jonathan Nebauer, Arkeus claims its sensors detect targets eight times farther than existing optical systems in degraded visual conditions.
The Sales Motion
Arkeus is not selling direct to government. It is an embedded subsystem supplier to platform makers: AeroVironment, Textron, Insitu (Boeing subsidiary) and Tekever. Those primes integrate Arkeus sensors into their drones, which then get sold into defence programs.
The company has secured multiple US Department of Defense contracts and won the Australian Army Wide Area Airborne Surveillance Program in November 2025. Worth noting: Arkeus beat US-based incumbents on Pentagon evaluations, which is unusual for an ANZ defence tech at this stage.
What the Money Does
Series A capital funds manufacturing scale-up in Queensland and US expansion. The company is transitioning from prototype wins to production delivery, which typically means building out commercial and delivery teams alongside engineering.
No CRO or VP Sales announced in the funding coverage, but scaling manufacturing implies scaling the team that secures platform integrations and manages defence program timelines.
Government Contractor Context
Defence sales cycles are measured in years, not quarters. Arkeus appears to be past the pilot stage: it is shipping into active programs and scaling to meet demand. The A$100M valuation at Series A is high for ANZ but reflects contracted defence revenue rather than SaaS-style projections.
For sales professionals watching the defence tech space: the growth path here is platform integration partnerships first, direct prime contracts later. Arkeus is playing the long game on a sector where quota attainment looks nothing like enterprise SaaS.