This Week in Dual-Use
NEWS
Ukraine & allies plan independent satellite imagery network
A consortium of Ukrainian, Nordic and eastern European companies is hoping to raise more than €100m to build a constellation of 70-plus imagery satellites that would provide intelligence along Russia’s border. It would enable them to secure direct, persistent access to high-resolution imagery without relying on American providers.
As Ukraine discovered earlier this year, sovereignty in intelligence collection has suddenly become important. The fact hasn’t escaped the more Eastern countries of Europe, who are joining it in this endeavour. The closer you are to Moscow, the more you now value ownership of these things.
Meanwhile Eutelsat, a European competitor to Starlink, announced a €1.35bn capital raise. It is the only alternative provider of low Earth orbit (LEO) internet and is quickly expanding its services.
NATO unveils Rapid Adoption Action Plan
At last week’s NATO summit in the Hague, the organisation released its Rapid Adoption Action Plan which aims to accelerate the adoption and integration of new technological products for defence. Allies commit to expedite adoption procedures, including fast-track procurement.
Unlike the NATO defence spending target, there are no hard commitments in the Rapid Adoption Action Plan. But it’s nevertheless a step change for an organisation that was created during the Cold War, at a time when the slow production of submarines, ships and armoured formations was the priority.
Acquiring advanced technology does not always, by itself, deliver strategic advantage - as evidenced by the Ukrainian acquisition of F-16s. NATO allies should be mindful of the need to combine it with doctrine and training.
China builds mosquito-sized spy drone
A military research institute in China has unveiled a spy drone that is the same size and shape as a mosquito. The tiny unmanned aerial vehicle (UAV) features hair-thin legs and two wings, which can be controlled via a smartphone.
I published a piece last week on how China is leading the world in defence tech innovation. Although a mosquito-sized drone probably wouldn’t make a Ukrainian soldier very nervous, a thousand of them would be a different proposition.
It highlights the difference in approach between China and its adversaries. Has the West created something similar? Yes. In fact we beat them to it. In April the Harvard Microrobotics Lab unveiled the latest iteration of its RoboBee drone. The researchers plan to use it for things like environmental monitoring.
The Chinese version was created at the National University of Defence Technology and comes equipped with sensors for covert military operations. In the West we instinctively separate defence and civilian innovation, whereas in China the doctrine of civil-military fusion aims to blend the two together.
Meanwhile a German company is developing swarms of fully controllable living insects for mission-critical operations (see also fundraising details below).
NSSIF receives more funding
Buried in the UK’s recently released Industrial Strategy was the fact that the National Security and Strategic Investment Fund (NSSIF) will receive up to £330m of additional capital by the end of the spending review period. It aims to strengthen NSSIF’s ability to invest in companies which address national security and defence capability requirements. That is good news.
FUNDRAISING
Kraken Technologies, a British developer of unmanned surface vessels (USVs), raised an undisclosed amount of money, with investment from NATO Innovation Fund and UK’s National Security Strategic Investment Fund (NSSIF).
Isar Aerospace, a German developer of space launch vehicles, raised€150m in the form of a convertible bond from Eldridge Industries.
Raphe mPhibr, an Indian developer of unmanned aerial vehicles (UAVs), raised a $100m Series B led by General Catalyst.
Xona Space Systems, an American developer of a position, navigation and timing (PNT) constellation in space, raised a $92m Series B led by Craft Ventures.
Sceye, an American builder of solar-powered airships that operate in the stratosphere to provide internet access, monitor the environment, and support communications, raised a $15m first tranche of a planned Series C round. SoftBank provided the funding.
Skynopy, a French startup that sells access to ground stations that let satellite operators send and receive data from their satellites more efficiently, raised a €15m seed round.
Swarm Biotactics, a German developer of bio-robotic systems based on fully controllable living insects for mission-critical operations, raiseda €10m seed round.
Qunnect, an American developer of quantum entanglement-based protocols over commercial fibre, raised $10m in Series A extension funding.
Cosma, a French company that uses fleets of autonomous underwater drones and AI-driven mapping tools to create detailed, 3D maps of the ocean floor, raised a €2.5m round. WIND and Ternel co-led the deal.