Cambridge Aerospace raises $300M Series C at $3.4B valuation
What's the deal? UK air defence company Cambridge Aerospace has raised a $300m Series C at a $3.4bn valuation. DFJ Growth led the round, with support from Lux Capital, Accel, Lakestar, Never Lift, Ora Global, and Elad Gil & Co.
Why it matters: The round ranks in the top 1% of all-time Series C deals for defence tech companies in the UK, based on a sample of 120 rounds. It cements Cambridge as one of Britain's most valuable startups, formed just two years ago in 2024.
What's the endgame? The company builds low-cost interceptors to counter aerial threats. Its Skyhammer anti-drone and cruise missile interceptor is already in production, with plans to reach 2,500 a month by the end of March next year. A second system, the rocket-powered Starhammer, targets high-speed threats such as ballistic missiles and is expected to reach market in 2027.
Where the money goes: Proceeds will scale manufacturing to deliver on existing and new contracts, plus fund product development. Since a $200m Series B at a $1.3bn valuation in April, Cambridge has won several UK Ministry of Defence contracts, including one to supply Skyhammer interceptors to the British Armed Forces and Gulf partners.
The expansion: Beyond the UK, Cambridge has a presence in Germany, Poland, Norway, Ukraine, and Australia. It is also in talks with the US government, having had Skyhammer tested by the US Army across Europe and Africa. The company is building Europe's largest solid rocket motor factory in Norfolk.
"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," said Randy Glein, DFJ Growth founder and managing partner.
The signal: The raise reflects surging demand for affordable air defence as cheap attack drones reshape modern warfare. The war in the Middle East and Russia's use of Shahed drones in Ukraine have exposed the cost gap between expensive interceptors and low-cost threats. Cambridge has raised more than $630m in total since 2024.
Read more: UKTN · Resilience Media · Cambridge Aerospace · Tech Funding News · Financial Times
Image credit: Defence Images
