Arkeus raises $A25m Series A after Pentagon contracts

Arkeus has raised $A25 million in a Series A led by QIC Ventures. The Melbourne defence-tech startup builds AI-powered hyperspectral sensing systems and has already won Pentagon contracts. The round values the company at $A100 million post-money, Startup Daily reported.

The raise ties fresh capital to customer traction in defence, not to a broad software-AI pitch. That makes it a useful signal for a narrower slice of the Australian startup market — hardware-oriented founders who can point to government buyers already writing cheques.

Deep-tech founders often struggle to finance product-heavy companies without moving offshore early. In Arkeus’ case, Pentagon contracts appear to have given investors a cleaner read on the technology’s export potential and domestic relevance.

Business News Australia reported that Arkeus says its hyperspectral systems can detect targets at up to eight times the range of existing optical platforms. Simon Olsen, the chief executive and co-founder, said modern defence was shifting towards systems that operate in real time without constant human input or vulnerable data links. He co-founded the company with CTO Dr Jonathan Nebauer.

The fresh capital will go towards manufacturing capacity, expanding across more platforms and customer types, and getting more systems into the field. Olsen said the round would help Arkeus move faster on that plan. The company expects to grow to nearly 100 people, a reminder the raise funds both product development and the organisational heft needed to deliver hardware at scale.

The deal was not a one-off. Arkeus had already raised a $A5 million follow-on from existing investors in March 2025, Startup Daily reported. QIC Ventures investment director Nick Capell said defence buyers were shifting towards software-defined, autonomous systems where sensing and edge decision-making mattered most. For a specialist sensing company, that narrative lands at a moment when broader AI claims are struggling to convert into durable revenue.

The company is also relocating to Queensland, Newsreel reported earlier this month, adding a state-industry layer to the expansion. If Arkeus can turn Pentagon traction into domestic manufacturing scale, a larger headcount and repeat contracts, it would offer a concrete example of an Australian deep-tech founder growing onshore through a serious funding round — and holding onto the IP, jobs and production in the process.