Australia’s Arkeus lands $18M for global expansion

Arkeus, a Melbourne, Australia, startup focused on hyperspectral imaging for military applications, has raised AUS$25 million ($18 million) in series A funding that will aid its global expansion plan.

Led by QIC Ventures, and with participation from several US and international investors, the new finance is expected to enable the firm to scale its core technology significantly, and establish a manufacturing and sustainment facility in Queensland.

Described as hyperspectral optical radar (HSOR), the technology relies on AI rather than human image interpretation, and has already been deployed for evaluation by US and Australian defense departments.

Drone deployments

According to Arkeus HSOR has also been integrated with major drone manufacturers including AeroVironment, Textron, Tekever, and the Boeing subsidiary Insitu.

Arkeus CEO and co-founder Simon Olsen said: “Machines can't act autonomously if they can't truly perceive their environment. In the moments that matter most, systems are still flying blind. Data is collected but not understood in time to act. That's the problem we set out to solve.

“The next generation of autonomy isn't limited by platforms; it's limited by perception. Decision-making is moving closer to the edge, and that requires a completely different approach to sensing and autonomy.”

Arkeus says that its core technology is able to capture multiple layers of visual data simultaneously, allowing AI to detect, classify and track objects across any domain, day or night, and even in degraded or contested environments where traditional sensors struggle.

The firm also claims that in a competitive evaluation carried out by the US Department of Defense its sensing systems detected targets up to eight times further away than existing optical systems in degraded visual conditions.

“Our systems process and interpret data on the platform itself, allowing autonomous systems to act in real time without relying on vulnerable communications links,” Olsen added.

“This capital allows us to scale manufacturing and get capability into the field faster, while expanding across a broader set of platforms and customers.

“Establishing a manufacturing and engineering base in Queensland gives us the ability to scale alongside our customers and support long-term defense programs from within Australia and across the Pacific.”

Structural shift

QIC Ventures’ investment director Nick Capell suggested that the investment reflected a structural shift in how defense capability is now being built and funded, saying:

“We’re seeing defense move toward software-defined, autonomous systems where sensing and decision-making at the edge are critical. Arkeus sits directly in that shift, delivering a step-change in how platforms perceive their environment and how quickly that translates into action.

“At QIC Ventures, our focus is on backing technologies that matter strategically, not just commercially. Arkeus is a clear example - a company with global demand that can be scaled from Australia, while strengthening sovereign capability at the same time.”

Arkeus was founded in 2020 by Olsen and CTO Jonathan Nebauer, an aerospace engineer and optical sensing specialist.

Aside from QIC Ventures, the series A round attracted funding from new investors R+VC, Folklore Ventures and DYNE Ventures, alongside continued support from existing investors Main Sequence Ventures, Salus Ventures, and Beaten Zone.