Beaten Zone Venture Partners Backs Tiberius Aerospace in US$4.5M Round to Transform Defence-as-a-Service
Beaten Zone Venture Partners (BZV) this week announced its participation in the US$4.5M founders’ round of Tiberius Aerospace, a US-based defence technology company pioneering a new “Defence-as-a-Service” model. BZV’s first fund, Beaten Zone Venture Capital Fund 1, LP (BZVF1), has invested as part of the raise, alongside Never Lift Ventures, Blacklake, Firedrop VC, and other strategic co-investors.
Tiberius is the first announced US-based investment in the BZVF1 portfolio, highlighting BZVF1’s commitment to backing world-class defence technologies that strengthen national security, enhance allied capability, and improve survivability.
Founded in 2022 by Chad Steelberg and Andy Baynes , Tiberius is reimagining the way allied nations procure and scale precision strike capabilities. The company develops long-range munitions (Sceptre & Invictus) and GRAIL, an AI-powered analysis platform, delivered through a modular IP licensing model that enables sovereign manufacturing at scale.
Last week, Tiberius secured a $5 million contract with the UK Ministry of Defence to speed up the development of Sceptre, a 155mm ramjet-powered round compatible with NATO howitzers. Testing will be independently validated by the US Defense Innovation Unit. If the project meets its milestones, the deal is anticipated to lead to additional orders and revenue from software licensing.
“Tiberius sits at the intersection of urgent global demand for affordable long-range precision fires and the need for sovereign manufacturing pathways. Their approach, separating IP and software from hardware production, creates scalability, resilience, and cost efficiency that traditional Defence contractors cannot match,” said Steve Baxter, Founder and Lead Investor of Beaten Zone Venture Partners. “This is exactly the kind of capability we back: strengthening national security, delivering new levels of capability, and improving survivability for our allies.”
As NATO and AUKUS allies quickly increase their use of precision munitions in reaction to the Ukraine conflict, Tiberius’ model presents a significant advancement. By licensing its IP and integrating its AI-based GRAIL platform into procurement and targeting processes, the company seeks to speed up development, reduce costs, and offer governments adaptable options to restock their supplies.
Inside the investment
Beaten Zone Venture Partners sees Tiberius as an exceptional early-stage opportunity because:
- World class team: The founders of Tiberius have previously started, scaled, and sold several ventures. Chad Steelberg took Veritone public, sold AdForce for over US$500M, and built dMarc, which Google acquired. Andy Baynes helped scale Nest into a US$3.2B outcome. Mike Martin ran a US$300M crossover fund after leaving his role as a Navy SEAL. Tim Conners built propulsion systems at NASA, Raytheon, Boom, and Hermeus. This is not a team learning how to scale a business or develop a product; the executive team is leveraging its decades of experience to address one of defence’s most urgent gaps.
- Strong Market Tailwinds: Rising geopolitical tensions, modernisation programs, and demand for long-range precision fires are driving rapid growth in missile and artillery markets. The missile market is forecast to grow from US$27.2B in 2025 to over US$114B by 2033 (9.0% CAGR), while artillery systems are set to reach US$13.5B by 2030 (7.2% CAGR), creating strong tailwinds for next-gen solutions like Tiberius’s Sceptre.
- Unique capability: Tiberius’s Sceptre compresses missile performance into an artillery round that is low cost, compatible with existing NATO howitzers, and built for mass production and rapid fielding. Legacy competitor offerings don’t currently blend range, precision, and affordability.
- Customer engagement: Tiberius secured a US$5M contract from the UK MoD with significant follow-on procurement opportunities contingent on successful trials.
-ends-
ABOUT BEATEN ZONE VENTURE PARTNERS
Beaten Zone Venture Partners is headquartered in Brisbane, Australia and invests in sovereign early-stage businesses with products that have material military use and contribute to Australia’s national security and the survivability of allied warfighters. The scope precludes investments involved with controversial weapons, such as 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)
ABOUT STEVE BAXTER (www.stevebaxter.com.au)
Steve is a passionate Australian, Queenslander and ADF veteran. He has been investing into the Australian technology scene since 2011 with over 90 companies funded. He was the founder of South Australian dial up ISP SE Net, and co-founder of Brisbane based whole telecommunication company PIPE Networks. Following successful exits, Steve started River City Labs, Startup Catalyst, River Pitch and TEN13 as well spending one year as Queensland Chief Entrepreneur and four seasons on the Channel Ten show ‘Shark Tank Australia’.
Disclaimer
Beaten Zone Investment Manager Pty Ltd. (CAR) is a corporate authorised representative of Boutique Capital Pty Ltd (BCPL) AFSL 508011, CAR Number 001303229. CAR is the investment manager of Beaten Zone Venture Capital Fund 1. LP (Fund).
To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth).
The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information.
The investment summarised in this document is subject to known and unknown risks, some of which are beyond the control of CAR and their directors, employees, advisers or agents. CAR does not guarantee any particular rate of return or the performance of the Fund, nor does CAR and its directors personally guarantee the repayment of capital or any particular tax treatment. Past performance is not indicative of future performance.
The materials contained herein represent a general summary of CAR’s current portfolio construction approach. CAR is not constrained with respect to any investment decision making methodologies and may vary from them materially at its sole discretion and without prior notice to investors. Depending on market conditions and trends, CAR may pursue other objectives or strategies considered appropriate and in the best interest of portfolio performance.
There are risks involved in investing in the CAR’s strategy. All investments carry some level of risk, and there is typically a direct relationship between risk and return. We describe what steps we take to mitigate risk (where possible) in the Fund’s Information Memorandum. It is important to note that despite taking such steps, the CAR cannot mitigate risk completely.
Whilst this report is based on information from sources which CAR considers reliable, its accuracy and completeness cannot be guaranteed. Data is not necessarily audited or independently verified. Any opinions reflect CAR’s judgment at this date and are subject to change. CAR has no obligation to provide revised assessments in the event of changed circumstances. To the extent permitted by law, BCPL, CAR and their directors and employees do not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions.
This document is informational purposes only and is not a solicitation for interests in the Fund. Application for interests in the Fund can only be made via the Fund’s Information Memorandum and Application Form.