This Week in Dual-Use
NEWS
China refocuses Hong Kong labs on quantum
Hong Kong’s research labs have been restructured to align with Beijing’s national technology goals, with quantum science emerging as a central priority.
Readers of this newsletter last week may have noticed the rash of quantum fundraising news, with companies like PsiQuantum, Quantinuum, Phasecraft and IQM all reporting fresh capital raises. These are, of course, Western companies. Chinese quantum computing companies don’t report fundraising rounds because they’re largely state-backed.
It strikes me that, until relatively recently, the development of quantum computing in the West would probably have been a government programme, much like the Manhattan Project was. The top scientists of our generation would have been invited to serve the state in the interests of national security.
The advent of venture capital has changed that. Now our top quantum scientists are founders of university spin-outs and go on to raise millions in capital, because venture investors understand how important the technology will be.
The CCP also understands how important it will be, demonstrated by its repurposing of Hong Kong’s research labs. Recent tests of Chinese quantum technology revealed that it is not far behind Western companies. As humanity advances this new technology, it will be interesting to see how the democratic, capitalistic model fares against the autocratic, communist one.
UK Pacific carrier deployment to feature unmanned ships
The Royal Navy is developing a hybrid manned and unmanned fleet along with a modernised air wing for its carrier strike group. The First Sea Lord, Gen Gwyn Jenkins, said he plans to work with industry to create a force that is a combination of crewed and uncrewed vessels.
That news will come as a relief to startups developing unmanned surface vessels (USVs). While the US Navy recently ordered 600+ USVs, the Royal Navy has been slower to develop an interest in the technology. Although the scale of acquisition is still unclear, the direction of travel is at least confirmed.
The First Sea Lord’s willingness to experiment with hybrid concepts also opens the door to different procurement models, where startups could iterate quickly alongside primes rather than waiting for decade-long programmes. The question is whether this intent will translate into sustained investment.
UK Air Chief announces plans to restore airborne nuclear detterent
Empowering the United Kingdom’s Royal Air Force to reintroduce a nuclear-strike capability as soon as possible will be a key priority for the service in the coming years, according to Air Chief Marshal Harv Smyth.
I had recently ruminated on this possibility when the British plans to acquire F35As (the nuclear-capable version) were first announced - it has now been confirmed.
This is a shift in nuclear strategy for the UK, which has relied exclusively on Trident-delivered nuclear payloads since 1998, when it left NATO’s dual-capable aircraft mission. Since then the UK government has been reliant on American-made Trident missiles for its nuclear deterrent.
It seems likely that the UK will adopt the French model, which features a hybrid of submarine-launched ballistic missiles and air-launched cruise missiles, delivered by Rafales. The French were always considered to be ‘very French’ in their insistence on a nuclear deterrent made in France. That feels like a sensible decision in retrospect.
FUNDRAISING
Horizon Quantum, a Singapore-based developer of quantum computing software, announced plans to go public via a SPAC on the NYSE. The transaction is expected to close in Q1 2026.
Divergent Technologies, an American manufacturer of missile airframes and other defense parts, raised a $250m round at a $2.3bn valuation. Rochefort Asset Management was the deal lead.
Apex, an American manufacturer of mass-produced, configurable satellite buses, raised a $200m Series D round at a $1+ bn valuation. The deal was led by Interlagos. The company just raised a $200m Series C in May.
Vector, an American drone developer, raised a $61m Series A led by Pelion Venture Partners.
Reorbit, a Finnish developer of hardware and software needed for independent satellite operations, raised a €45m Series A round led by Springvest.
Univity, a French developer of a satellite constellation that enables telecom operators to provide high-speed, low-latency internet access from space, raised $36m in strategic funding from France 2030.
Orienspace, a Chinese launch startup, raised at least $27m in a Series B+ round.
FERNRIDE, a German startup building a ground autonomy platform and now targeting defence logistics, raised an €18m Series A extension led by Helantic.
Swarmer, a Ukrainian developer of of drone swarming technology, raised a $15m Series A led by Broadband Capital Investments.
Rendezvous Robotics, an American developer of reconfigurable space structures using modular tiles, raised a $3m pre-seed round co-led by Aurelia Foundry and 8090 Industries.
Hive Robotics, a German developer of an AI-driven control layer to coordinate autonomous robot swarms, raised a $2.3m pre-seed round led by b2venture.
Astradyne, an Italian developer of ultralight solar panels for space craft, raised a €2m seed round led by Primo Capital.
NUVIEW, an American startup building space-based LiDAR payloads, received a $5m grant from the DoD's National Security Innovation Capital program.