This Week in Dual-Use
NEWS
Anduril wins Dutch counter-drone contract
I don’t tend to write about the awarding of defence contracts, but I felt compelled to mention this one. Since J.D. Vance’s speech in Munich 15 months ago, there has been much talk of sovereign European defence capability. Even more so since ‘the whole Greenland thing’ earlier this year.
So it caught my eye when the Netherlands awarded its counter-drone contract to Anduril. In the words of my colleague Anthony, “we have enough great players in C-UAS in Europe. Why would they choose an American solution?”
Why indeed. Especially when, as the founder of a European C-UAS company recently told me, the feedback from the Gulf on Anduril’s Roadrunner product is not compelling.
So what gives? The Dutch procurement pattern across the last decade shows a clear drift towards European (especially French and Nordic) industrial partnerships. In 2024 it chose France to build four Orka-class submarines. And in 2025 it joined the Nordic Initiative to acquire additional CV90 infantry fighting vehicles. It has admittedly purchased F-35s to replace its F-16s. But then most European countries have done that.
The answer may lie in Anduril’s distribution channels. It is partnered with COBBS, a Netherlands-headquartered reseller of Anduril. COBBS likely opened doors that a US company without European roots would otherwise struggle to find.
So, Dutch MOD pays Dutch company to provide C-UAS. Dutch company chooses its American partner.
In the words of the same C-UAS founder “Timing is something but not everything. With a minimal defence industrial base [the Netherlands] can do whatever it wants”.
China develops cutting edge submarine
A recent Economist article alerted me to the fact that China is developing a new class of ultra-stealthy submarine. It is apparently doing this with the help of Russian technology, in exchange for China’s support of its invasion of Ukraine.
The submarine in question seems to be the new Type 096 (Tang-class). Six are planned, with two currently under construction. The Type 096 is expected to represent a qualitative leap in capability, potentially featuring up to 24 missile tubes and acoustic performance approaching or even surpassing modern Western standards.
The interesting part of this story is perhaps not the submarine itself, but the change in relationship between China and Russia. Since the Cold War Russia has been a global leader in submarine technology, and has hitherto guarded its sub-surface secrets jealously.
The fact that it may now be sharing them with China speaks to the desperation of the Putin’s political situation, but also the reversal of the Sino-Russo relationship. The little brother is now the big brother.
It may also precipitate an underwater sensing technology frenzy. If China is able to field a submarine that is quieter by an order of magnitude, the West will need improved undersea sensing capability (and perhaps also undersea mapping technology) commensurate with the threat.
China claims first dual-core neutral atom quantum computer
Chinese startup CAS Cold Atom Technology unveiled Hanyuan-2, a 200-qubit neutral atom quantum computer. The company claims it is the world’s first dual-core architecture. The system apparently combines two independent neutral atom arrays, which could support more stable logical qubits and improved scalability.
Neutral atom quantum computers could provide a breakthrough in the quantum industry. In January 2026 a demonstration at the Lukin Lab in Boston revealed that neutral atoms could be the most promising route to near-term fault tolerant architectures. This is because they have long coherence times and are inherently scalable due to their identical characteristics, amongst other things.
Investors are now paying a heavy premium for teams developing neutral atom technology.
Upon inspection, none of the Chinese company’s claims have been independently verified. So the performance of the computer remains unconfirmed. But it shows that China is taking neutral atom technology just as seriously as the West.
What is perhaps more interesting is that its predecessor, the Hanyuan-1, was sold to Pakistan in late 2025. That piece of news slipped under the radar but, having just discovered this, it struck me as particularly relevant. If quantum computers are to be as strategically sensitive as semiconductors, perhaps more so, the sale of that technology adds a dimension to an already complex geopolitical picture.
Will China supply quantum technology to Russia, just as it has components for its invasion of Ukraine? Or perhaps in exchange for Russian submarine technology? And might Russia give those quantum computers to North Korea in return for troops on the ground?
FUNDRAISING
DEFENCE
Havoc, an American developer of uncrewed surface vessels (USVs), raised a $100M Series A led by Cobalt and Boardman Bay.
Swebal, a new Swedish producer of TNT, raised €30M.
Darkhive, an American developer of UAV hardware and software, raised a $30m Series B led by RTX Ventures.
Heaviside, an American producer of munitions, emerged from stealth with $28M in funding. The round was led by Interlagos Capital.
Sapient Perceptions, a Danish developer of a drone sensor for wide area surveillance and mine detection, raised €2M in pre-seed funding led by Balnord and FORWARD.one.
SPACE
Astranis, an American builder of geostationary satellites, raised a $300M Series E at a $2.8B valuation. The deal was co-led by Snowpoint Ventures and Franklin Templeton.
Cowboy Space, formerly known as Aetherflux, an American developer of rockets and orbital data centers, raised a $275M Series B at a $2B valuation. The round was led by Index Ventures.
LiveEO, an German developer of software for turning satellite imagery into risk intelligence, raised a €28M Series C led by .
Lunar Outpost, an American developer of autonomous lunar rovers, raised a $30M Series B led by Industrious Ventures.
Scout Space, an American developer of sensors that track and analyze objects in orbit, raised an $18M Series A led by Washington Harbour Partners.
QUANTUM
Photonic, a Canadian developer of full-stack quantum computers based on silicon spin technology, raised a $70M extension to its financing round, bringing the total round size to $200M at a $2B valuation.
Quantum Motion, a British developer of full-stack quantum computers based on silicon spin technology, raised a $160M Series C co-led by Mundi Ventures and DCVC.
eleQtron, a German developer of full-stack quantum computers using trapped ion technology, raised a €57M Series A led by Schwarz Digits.
QuTwo, a Finnish company developing an orchestration layer which directs tasks to classical, quantum, or hybrid architectures, raised €25m in angel funding.
Anello Photonics, an American developer of a silicon photonic optical gyroscope, raised a $25M Series B led by MESH.
Algorithmiq, an Italian developer of quantum computing algorithms, raised €18M in funding co-led by United Ventures and CDP Venture Capital.
GOING PUBLIC
Hawkeye360, an American company building a low-Earth orbit (LEO) constellation enabling space-based signals intelligence, went public at a valuation of ~$2.4B, raising $416M.