Arkeus secures AUD $5m funding to boost global expansion

Arkeus has secured an additional AUD $5 million in funding to support its expansion plans and meet increasing market demand.

The funding round, which was oversubscribed, saw continued backing from existing investors including Main Sequence, Salus Ventures, and Beaten Zone Venture Partners. This indicates investors' confidence in Arkeus' capabilities, particularly in accelerating decision-making through edge-based artificial intelligence (AI) technologies.

Arkeus is known for its Hyperspectral Optical Radar (HSOR) system, which combines software-enabled sensors, advanced optics, AI, and edge processing technology. This system enhances wide-area intelligence, surveillance, and reconnaissance (ISR) operations by identifying details not visible to the human eye.

Simon Olsen, Chief Executive Officer and Co-Founder of Arkeus, stated, "As the recognised leader in autonomous optical systems, Arkeus is seeing a 10x increase in demand for its capabilities. This funding allows Arkeus to rapidly expand manufacturing capacity to get systems into its customers' hands, faster."

The security offered by Arkeus technology is bolstered by robust data encryption technologies, which have been developed through contracts with the Australian Defence Forces, including the Army, Navy, and Air Force. These efforts highlight Arkeus' role in contributing to joint ISR capabilities that prioritise interoperability.

Over the past year, Arkeus' systems have been integrated into more than six defence platforms, including successful evaluations of the HSOR both in Australia and internationally.

The company's "ARK" data fusion and exploitation engine is central to its AI capabilities and provides a foundational AI architecture for the Australian Defence Force. This technology is operational across manned and unmanned airborne and surface platforms, facilitating operations free from disruption or denial attempts, and playing a critical role in Australia's defensive infrastructure.

Simon Olsen further noted, "This funding injection reflects renewed confidence in Australian capability. This strength, in conjunction with the welcomed Government modification to the definition of an 'Australian' business, provides the foundation necessary for Arkeus to grow its contribution to the success of AUKUS Pillar II."

Alezeia Brown, Investment Manager at Main Sequence, expressed enthusiasm about continuing support for Arkeus, stating, "Main Sequence is proud to continue its support for Arkeus as it scales its groundbreaking autonomous optical systems. Arkeus's fusion of advanced optics, AI, and edge processing is proving invaluable across multiple defence platforms, and Main Sequence is excited to back its expansion as it meets the growing demand for its technology in Australia and internationally."

Dan Bennett, Co-Founder and General Partner at Salus Ventures, remarked, "Salus Ventures is delighted to support the world-class multidisciplinary team at Arkeus, which continues to demonstrate exceptional customer pull through. With governments and the dual-use sector in AUKUS nations bringing sustained focus to bear on Pillar II, Arkeus is well-positioned to support the accelerated customer demand. Salus Ventures is pleased to support this latest funding round, which will propel Arkeus into new geographies, and looks forward to continuing to activate its deep global network in support of this aim."