Beaten Zone Venture Partners Congratulates Arkeus on A$25M Series A as Portfolio Company Reaches Inflection Point

Australian defence AI sensing company closes major round led by QIC Ventures, with technology already deployed with Australian and U.S. militaries 

Beaten Zone Venture Partners (BZV) today congratulates portfolio company Arkeus on the close of its A$25 million Series A funding round, led by QIC Ventures. The round includes new investors R+ VC, Folklore Ventures and DYNE Ventures, with continued support from existing investors Main Sequence Ventures, Salus Ventures and Beaten Zone Venture Partners. 

BZV first backed Arkeus in 2024 and returned in 2025. Across two investments, BZV has backed the founders from the earliest stages of what has become one of Australia’s most compelling defence technology companies. 

Founded in Melbourne in 2020 by CEO Simon Olsen and CTO Dr Jonathan Nebauer, Arkeus develops full-stack AI-powered sensing systems that serve as the eyes and brains of autonomous platforms. The company’s core product, a Hyperspectral Optical Radar (HSOR) system, combines advanced sensing hardware with onboard AI to detect, classify and track objects across any domain, day or night, in degraded and contested environments. No GPS. No comms link. No human in the loop. 

The problem Arkeus solves is fundamental. While billions of dollars have been invested globally in drones, aircraft and autonomous platforms, most still rely heavily on human interpretation and external processing to make decisions. Arkeus removes that dependency entirely, delivering real-time perception and decision-making at the edge. 

The validation has been decisive. In competitive evaluations against U.S. incumbents, Arkeus demonstrated detection ranges up to eight times that of existing optical systems in degraded visual conditions. Evaluators from U.S. government agencies have described the HSOR as orders of magnitude better than any other solution on the market. 

 

The technology is already operational. Arkeus systems are deployed with the Australian Department of Defence and the U.S. Department of War, and integrated with leading global platforms from AeroVironment, Textron, TEKEVER and Boeing’s Insitu subsidiary. 

“We first backed Simon and Jonathan when this was still being proven in the field. We came back again in 2025 because what they had built was undeniable,” said Steve Baxter, Founder and Lead Investor at Beaten Zone Venture Partners. “This Series A is the result of two founders who understood a problem the autonomy world is only now catching up to, and built a world-leading solution to match. We are proud to have been part of this journey from the beginning.” 

Series A funding will be used to establish advanced manufacturing capability in Queensland and the United States, supporting sovereign defence production at home while meeting growing allied demand abroad. The team will more than double to nearly 100 people, and R&D will continue on the next generation of sensing products. 

About Arkeus Arkeus is an Australian defence technology company developing AI-powered sensing systems that enable real-time perception and decision-making for autonomous platforms. Founded in 2020, Arkeus is deployed across Australian and U.S. defence programs and integrated with major global drone manufacturers. For more information, visit www.arkeus.com.

 

ABOUT BEATEN ZONE VENTURE PARTNERS 

Beaten Zone is headquartered in Brisbane and will invest in sovereign early-stage businesses with products having material military use, that help to contribute to Australian and allied war-fighters lethality and survivability. The scope precludes investments involved with controversial weapons, e.g., landmines, or other capabilities that would violate Australian ratified treaties or agreements.  

 

MEDIA CONTACT 

Stephen Baxter Lead Investor and Founding Partner (steve@beatenzone.vc) 

Peta Ellis General Manager (peta@beatenzone.vc) 

  

Disclaimer 

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