Cambridge Aerospace's valuation leaps to $3.4BN as raises $300M

UK defence technology startup Cambridge Aerospace has raised $300m at a $3.4bn valuation, a significant uplift on its valuation just a few months ago.

The Series C funding round in the counter-drone startup was led by US investor DFJ Growth and supported by Lux, Accel, Lakestar, Never Lift, Ora Global and Elad Gil.

The new funding in Cambridge Aerospace, which was founded less than two years ago, follows its $200m Series B at a $1.3bn valuation in April this year.

Founded in 2024 in Cambridge, UK-headquartered Cambridge Aerospace builds defence technology. Its key products include drone interceptor Skyhammer, missile interceptor Starhammer, which is coming to market next year, and radar system Looking Glass. The startup has bagged several contracts with the UK’s Ministry of Defence, including a multi-million-pound contract to supply Skyhammer to the UK Armed Forces.

The startup’s CEO is former MIT researcher Steven Barrett, who is now based at Cambridge University. The startup says it will use the funds to boost its manufacturing capabilities to deliver on existing and new contracts, while continuing to invest in the development of existing products and bringing new products to market.

As well as the UK, the company has a presence in Germany, Poland, Norway, Ukraine, and Australia.

Barrett said: “By bringing together the best talent in the world with a singular mission to protect Allied skies from threats, we have achieved a huge amount already. The addition of these funds will allow us to continue to scale our manufacturing and our delivery to meet the pace of threats, and the needs of Allied nations.”

Defence secretary Wes Streeting said: “This valuation is a great vote of confidence in Britain. Cambridge Aerospace’s Skyhammer is an example of the low-cost interceptor missiles our Armed Forces need to deter adversaries and keep our country safe. It is exactly what our unicorn scheme is designed to create – British start-ups scaling into billion-pound companies, creating skilled jobs, cementing the UK’s position at the forefront of defence innovation.”