QIC Ventures helps raise $25m for defence tech company

QIC Ventures has led the $25 million raise for homegrown defence technology manufacturer Arkeus, which can detect targets eight times further than competitors.

Arkeus is used by the Australian Army and US Department of Defense, also known as the US Department of War, to "detect and track threats in real time" via an artificial intelligence (AI) sensing system that serve as the "eyes and brains" of machinery such as drones.

QIC Ventures, together with R+ VC, Folklore Ventures and Dyne Ventures, Main Sequence Ventures, Salus Ventures and Beaten Zone, are part of the Series A fundraise.

Locally, Arkeus is providing technology for the Australian Army Wide Area Airborne Surveillance Program, which heightens sensing capabilities of its Tactical UAS fleet.

It has also won contracts with the US Department of War following competitive evaluations against US incumbents.

Arkeus' sensing systems is said to detect targets up to eight times further than existing optical systems in degraded visual conditions, when compared to US Department of Defense competitive evaluation.

The money will enable Arkeus to move quickly as defence forces shift toward autonomous, sensor-driven operations, according to its co-founder and chief executive Simon Olsen.

"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.

"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."

Arkeus recently moved operations from Victoria to Queensland.

Queensland's premier David Crisafulli credited his government for the move, saying the deal strengthens the state's position as a national leader in defence.

QIC Ventures investment director Nick Capell said 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.

Olsen commented: "Queensland gives us the ability to attract and retain the people we need to build globally competitive technology here in Australia, and the support from QIC and the Queensland Government has been an important part of this decision."