Vatn Systems Secures $60 Million Series A to Scale AUV Production and Global Defense Reach

New updates have been reported about Vatn Systems (PC:VATNS)

Vatn Systems has raised $60 million in Series A financing to accelerate development and manufacturing of its autonomous underwater vehicles (AUVs), bringing total funding to $76.5 million and reinforcing its position as the largest AUV manufacturer in the U.S. The round was led by BVVC, with participation from new strategic and financial backers including Hanwha, Geodesic Capital, Airbus Ventures, Dauntless Ventures, Trousdale Ventures, and Veteran Ventures Capital, alongside existing investors such as DYNE Ventures, Propeller Ventures, Decisive Point Ventures, SAIC Ventures, Centre Street Partners, Cubit Capital, and Lockheed Martin Ventures. CEO and co-founder Nelson Mills said the capital will be used to expand headcount, speed up R&D, and scale manufacturing to capture rising global demand for affordable, scalable autonomous undersea systems and to compete for critical defense contracts in the U.S. and allied markets.

The funding follows a series of commercial and strategic milestones for Vatn Systems, including its first international contract in Singapore and deeper engagement with the U.S. Navy and Marine Corps. Investor BVVC highlighted Vatn’s competitive moat in navigation technology, a modular platform architecture, and a scalable production model that together enable affordable, multi-mission AUVs at volume. Vatn’s portfolio includes the Skelmir S6 compact modular effector and the Skelmir S12, a 12.75-inch platform that blends traditional AUV capabilities with lightweight torpedo-like performance for threat attrition, sensor and decoy deployment, and electronic warfare support, all powered by its proprietary INStinct inertial navigation system designed for precise, GPS-denied maritime environments at lower cost. Founded in 2023, Vatn Systems is positioning itself to become a next-generation underwater defense prime as autonomous systems increasingly shape naval warfare, with this round providing the capital base to scale operations, pursue larger programs of record, and expand its global customer footprint.