We tend to think Aussie tech is all fintech and software. Arkeus, a Melbourne company, builds some of the sharpest defence sensing gear around, and the US is now its biggest customer.
How it works
Arkeus uses hyperspectral sensing: reading light well beyond what the human eye can see, then using AI to make sense of it. That lets a drone or aircraft spot things hidden in smoke, haze, fog or camouflage.
The company says its system can detect targets up to 8x further than existing optical systems in poor visibility. It was tested against payloads already flying on military drones during competitive evaluations with the US Department of Defense.
The customers
- Around 80% of revenue now comes from the US, up from roughly 10% a year earlier
- The company says its tech is integrated with drones from AeroVironment, Textron, Tekever and Boeing subsidiary Insitu
- At home, the Australian Army’s Wide Area Airborne Surveillance program selected its technology, with work also done for the Navy and Special Operations Command
The raise
Arkeus raised a $25M (about US$18M) Series A led by QIC. New investors include R+VC, Folklore Ventures and DYNE Ventures, alongside existing backers Main Sequence and Salus. Forbes Australia reports a valuation of around $100M. The money goes into manufacturing in Queensland and the US, with headquarters staying in Melbourne.
The company was founded by CEO Simon Olsen and CTO Dr Jonathan Nebauer.
My read
The interesting part is the revenue split. Most Aussie defence startups spend years waiting for a local contract. Arkeus went and won in the US first. If the US is buying 80% of what you make, you are not a nice local story, you are a real exporter in one of the hardest markets to crack.