Kraken secures $175 million to achieve unicorn status in maritime defense.

      Initially, the Royal Navy launched a robotic boat from a transport plane at an altitude of 1,300 feet. Shortly thereafter, its manufacturer achieved status as Europe’s latest defense unicorn.

      Kraken Technology Group, a British producer of uncrewed surface vessels, has successfully secured $175 million (€152.9 million) in a Series B funding round, bringing the company’s valuation to over $1 billion. The announcement of this funding was made this week, marking its entry into unicorn status.

      The funding round was led by Digital Transformation Capital Partners (DTCP). The list of investors resembles a roadmap of Europe’s military buildup, including the British Business Bank, the NATO Innovation Fund, and Germany’s Rheinmetall. Other participants included Inocea Group and several European venture capital firms. Previous investors, such as the UK’s National Security Strategic Investment Fund and Speedinvest, opted to convert their stakes into equity.

      Cost-effective, swift, and already in combat

      Kraken manufactures dual-use composite vessels that operate without a crew onboard. Its product line includes the low-signature K3 SCOUT and the long-endurance K5 KRAKEN. Additionally, the K4 MANTA operates near the surface before diving for secret missions. The emphasis is on speed and modularity instead of size, allowing smaller hulls to be repurposed for surveillance, logistics, anti-submarine operations, or precision strikes.

      These vessels are not mere prototypes. In the past year, Kraken has secured contracts from the UK Ministry of Defence, NATO’s European allies, and USSOCOM. The company claims its platforms are currently active in various ongoing conflicts. Just days prior to the funding announcement, the Royal Navy successfully airdropped a K3 SCOUT from an A400M at 1,300 feet—an unprecedented event that enabled the deployment of a sea drone without a nearby port or mothership.

      Collaboratively built, not by shipyards

      Kraken’s business model differentiates it from its primary competitor. Instead of operating its own shipyards, Kraken collaborates with established manufacturers, including Rheinmetall in Germany, Anduril in the United States, and Inocea’s Davie Shipbuilding in Canada. The company anticipates forming additional partnerships in both the Middle East and the Indo-Pacific regions.

      In contrast, Saronic, the Austin-based startup, raised $1.75 billion in April at a valuation of $9.25 billion and operates its own shipyards. Kraken is banking on the belief that a lighter, partner-driven approach can achieve faster scalability and appeal to NATO customers sooner than directly manufacturing its own vessels.

      Europe’s defense funding surge

      This funding round comes amid a surge in defense investment. Venture funding for defense technology reached a record $49.1 billion in 2025. With Europe eager to enhance its sovereign capabilities as it re-arms, Kraken is part of a trend of substantial European funding rounds, including Stark Defence’s €500 million, along with BAE-backed funds created for the sector. Kraken’s vessels operate alongside autonomous systems already in combat in Ukraine.

      “The maritime sector is significantly underfunded,” remarked DTCP partner Ole Aguirre, asserting that Kraken has “swiftly addressed NATO’s needs” with cost-effective, high-speed vessels.

      Significance

      Kraken’s founder, Mal Crease, spent two decades pursuing offshore powerboat records before shifting his focus to defense in 2020. His conviction is that the future advantage at sea doesn’t lie in larger warships but rather in a fleet of inexpensive, fast, uncrewed vessels. This was validated when Ukraine's sea drones severely compromised Russia’s Black Sea Fleet. With NATO integrating autonomy into its defenses and armed with $1 billion in funding, Crease is now positioned to develop that fleet.