Vatn Systems Secures $60 Million Series A to Advance Underwater Naval Warfare at Scale
Vatn Systems, a defense technology company specializing in autonomous underwater vehicles (AUVs) for the US military, allied nations, and commercial clients, has just announced raising $60 million in Series A funding. The investment round was led by BVVC, with new participants such as Hanwha, Geodesic Capital, Airbus Ventures, Dauntless Ventures, Trousdale Ventures, and Veteran Ventures Capital. Key existing backers participating included: DYNE Ventures, Propeller Ventures, Decisive Point Ventures, SAIC Ventures, Centre Street Partners, Cubit Capital, and Lockheed Martin Ventures.
Funding will go towards growing Vatn’s team, boosting R&D, scaling production, and seeking global opportunities. The recent funding brings the company’s total funding to $76.5 million.
The Rhode Island startup, established in 2023, landed $20 million in contracts this year - most of them with the Pentagon, according to Founder and CEO Nelson Mills. Mills explained that controlling both the undersea and surface domains means having power over commercial routes, the movement of ships, and troop deployments.
Interest in autonomous surface and underwater vessels has grown after Ukraine used kamikaze unmanned speedboats successfully against Russia’s Black Sea fleet. However, the sector is still developing, and the US Navy has encountered challenges in deploying its own autonomous fleet.
“Vatn Systems aims to become the leading provider of underwater defense technology in an era dominated by autonomous naval systems,” said Mills. “With demand for affordable, scalable autonomous solutions in the undersea domain rising rapidly, this funding solidifies our leadership in deployable AUV tech, allows us to expand our workforce, accelerate research and development, and scale up manufacturing to meet growing global needs and secure important contracts.”
Joe Musselman, Managing Partner at BVVC, added, “Vatn Systems has established a strong competitive edge through advanced navigation technology, a modular platform, and scalable production methods. Their rapid growth and ability to deliver cost-effective, versatile systems at scale address major capability gaps. We’re proud to lead what we believe is the largest funding round in the AUV sector.”
Vatn Systems’ Series A comes amidst strong momentum, including their first international contract win in Singapore. The company continues to build partnerships with the U.S. Navy and Marine Corps while broadening its global customer base.
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