Cambridge Aerospace closes £222.4m series C led by DFJ Growth with Accel
This article covers Cambridge Aerospace, a defence-focused startup, closing a Series C funding round of £222.4m at a £2.5bn valuation, the startup announced on 10 August 2026. The funding will expand manufacturing and product development and will support delivery of counter-drone and air-defence capabilities for the UK defence industrial base and allied markets.
Cambridge Aerospace has closed a series C funding round of £222.4m at a £2.5bn valuation, the company announced on 10 August 2026. The raise, which the business says will fund expanded manufacturing and continued product development, is notable because it follows fresh UK Ministry of Defence contracts for low-cost interceptors and comes as demand for counter-drone and air-defence capabilities rises across Europe and allied markets.
Why it matters
The size and speed of this round underline growing investor appetite for defence-oriented hardware firms that can move from prototype to production quickly. Cambridge Aerospace’s funding lands after a £148.3m Series B in April and follows recent contracts tied to the UK’s Low-Cost Effectors & Autonomous Platforms (LEAP) programme. For the UK defence industrial base, the deal signals private capital continuing to back companies that promise domestically produced interceptors and manufacturing scale.
Inside the product
Formed less than two years ago, Cambridge Aerospace developed Skyhammer, its first interceptor system, and plans to bring a successor product, Starhammer, to market in 2027. The business says two-thirds of its more than 250 employees are in technical and engineering roles and that it draws on veterans from Allied armed forces to support development and delivery. The company also has operations in Germany, Poland, Norway, Ukraine and Australia, reflecting an export and partnership focus beyond the UK.
In the announcement, Steven Barrett, CEO at Cambridge Aerospace, said:
This raise is testament to the incredible work of the entire Cambridge Aerospace team. By bringing together the best talent in the world with a singular mission to protect Allied skies from threats we have achieved a huge amount already. The addition of these funds will allow us to continue to scale our manufacturing and our delivery to meet the pace of threats, and the needs of Allied nations.
Who are the investors?
The series C was led by DFJ Growth and supported by Lux, Accel, Lakestar, Never Lift, Ora Global and Elad Gil & Co. Several of those names — including Accel and Lakestar — are established venture investors with broad technology portfolios; Elad Gil & Co also co-led Cambridge Aerospace’s Series B in April alongside Spark Capital.
DFJ Growth’s lead position brings a stated emphasis on scaling hardware and systems businesses to production. The round keeps existing backers engaged while adding new institutional support for manufacturing expansion and international deliveries.
In the announcement, Randy Glein, Founder and Managing Partner at DFJ Growth, said:
Cambridge Aerospace is solving one of the most pressing challenges of modern warfare. They have developed an affordable and accurate counter UAS system for eliminating the inbound threats and battlefield chaos caused by low-cost aerial attack drones. We surveyed the global landscape and identified Cambridge as having the best team and technology to build the most advanced and modern air defense infrastructure for Europe and its allies.
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Founder perspective
The leadership team combines academic and operational defence experience. Professor Steven Barrett, the CEO, is a noted aerospace engineer. Chief commercial officer Chris Sylvan previously served in the Royal Marines and has worked in emerging defence technology, and Junaid Hussain is described as a founder of several emerging technology companies. Management links these backgrounds to a rapid product development pace and recruitment drive as the company scales manufacturing.
The bigger picture
The funding comes at a moment when European governments are investing in counter-uncrewed aerial systems and lower-cost interceptors as part of broader defence modernisation. Cambridge Aerospace’s contracts with the UK Ministry of Defence and its emphasis on local manufacturing map onto policy aims to strengthen domestic defence supply chains and create skilled jobs. The Defence Secretary welcomed the valuation as a boost for UK industry, framing it in the context of the government’s support for high-growth technology firms.
In the announcement, Wes Streeting MP, Defence Secretary, said:
This valuation is a great vote of confidence in Britain. Cambridge Aerospace’s Skyhammer is an example of the low-cost interceptor missiles our Armed Forces need to deter adversaries and keep our country safe. It is exactly what our unicorn scheme is designed to create – British start-ups scaling into billion-pound companies, creating skilled jobs, cementing the UK’s position at the forefront of defence innovation.
The deal is another data point in a broader trend of private capital flowing into hardware-focused defence and space ventures in the UK and Europe, particularly those promising faster production cycles and exportable systems. For policymakers and investors watching the region, Cambridge Aerospace’s round will be a test of whether rapid fundraising can be matched by rapid, reliable delivery at scale.
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