SYOS Aerospace lands first raise as UK drone order fuels global push
What's the deal? New Zealand's SYOS Aerospace has closed a convertible note round co-led by NZVCDealroom has a profile for this one. Try Dealroom → and Outset VenturesDealroom has a profile for this one. Try Dealroom →, with participation from Altered CapitalDealroom has a profile for this one. Try Dealroom → and undisclosed strategic funds. The five-year-old defence startup told Tectonic that terms were not disclosed. It is the company's first outside capital after running on revenue alone.
Why now? The raise follows a £30M UK Ministry of Defence order for drones bound for Ukraine. SYOS says it also holds a multi-domain New Zealand Defence Force contract.
What's the endgame? Founder and chief executive officer Sam Vye plans to spend the capital on research, production, and international expansion. "We're going to utilize this capital injection to go harder, go faster, and go quicker," he said, citing "expanding R&D capacity, expanding our production capacity, and pushing our global footprint further."
SYOS was founded by Vye in 2021, initially building unmanned helicopters for heavy lift in agriculture, forestry, and logistics. After Russia's full-scale invasion of Ukraine in 2022, it pivoted into defence. "We're dual-use now," Vye said.
The company now builds across air, maritime, ground, and counter-drone domains, all running on its own autonomy and command-and-control software. Its systems include heavy-lift helicopters, tactical drones, and uncrewed surface vessels, some of which are deployed in Ukraine. It won its first UK Ministry of Defence contract, worth £1.25M, in November 2023.
Why the backers? NZVC funds founders from New Zealand and Australia building global companies; Outset is described as New Zealand's most active deep tech investor. "We saw Sam's ability to build a company from New Zealand that can go global," said Mark Pavlyukovskyy, general partner at NZVC.
The signal: SYOS is a rare defence startup scaling out of New Zealand, using battlefield demand in Ukraine to fund a wider international expansion. Its bet is that dual-use hardware, proven in combat and controlled by in-house software, can win contracts well beyond its home market.
Read more: tectonicdefense.com
Image credit: Syos-aerospace
