Cambridge Aerospace, a UK startup that builds low-cost interceptor missiles designed to shoot down drones, has raised $300 million in a Series C round at a $3.4 billion valuation. The company was founded in late 2024 by CEO Steven Barrett, a former MIT aerospace professor now at the University of Cambridge, together with Chris Sylvan and Junaid Hussain. In less than two years, it has gone from an idea to active government contracts.
The round comes at a pointed moment for air defence spending. Attack drones like the Iranian-designed Shahed cost roughly $20,000 to $50,000 each, yet the interceptor missiles traditionally used to shoot them down can cost millions of dollars per shot. That gap matters. In March 2026, Russia launched over 200 drones per day into Ukraine, putting intense pressure on defenders who cannot afford to fire million-dollar missiles at each one. The global counter-drone market, valued at roughly $6.6 billion in 2025, is projected to grow to over $20 billion by 2030, driven by military demand across NATO and its allies.
DFJ Growth, a San Mateo-based venture firm, led the round. Lux, Accel, Lakestar, Never Lift, Ora Global, and Elad Gil & Co also participated.
In February 2026, five of Europe's largest defence spenders, the UK, France, Germany, Italy, and Poland, launched the LEAP initiative (Low-Cost Effectors & Autonomous Platforms). The programme aims to develop and mass-produce affordable surface-to-air weapons, with large-scale production targeted from 2027. In July, the UK became the first of the five to award contracts under LEAP, selecting Cambridge Aerospace alongside Frankenberg Technologies and Greenjets to develop and trial interceptor designs.
Conventional defence procurement tends to take about a decade from concept to delivery. Drone threats have evolved faster than that. Programmes like LEAP are built to bring in smaller companies that can develop and manufacture systems in months rather than years.
"Cambridge Aerospace is solving one of the most pressing challenges of modern warfare. They have developed an affordable and accurate counter UAS system for eliminating the inbound threats and battlefield chaos caused by low-cost aerial attack drones. 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." — Randy Glein, Founder and Managing Partner of DFJ Growth
Most of the new capital will go toward expanding manufacturing and speeding up delivery on existing and upcoming contracts. Cambridge Aerospace is already supplying its Skyhammer interceptor to the UK Ministry of Defence under a contract announced in April 2026, and a second production facility is being fitted out to increase output.
The funding will also go toward what the company calls "spiral development," a process of continuously improving existing products based on operational feedback. Cambridge Aerospace expects to bring its next system, Starhammer, to market in 2027. Starhammer is expected to be a higher-speed interceptor that can address a broader range of threats. The company, which currently has more than 250 employees, plans to keep growing its workforce.
Outside the UK, the company already operates in Germany, Poland, Norway, Ukraine, and Australia. Some of the new funding will support further international expansion as NATO and partner nations increase their spending on affordable air defence.
The company was founded in late 2024. Its stated mission is to eliminate the risk of existential war in Europe. CEO Steven Barrett is an aerospace engineer who previously held academic positions at MIT and Cambridge. Chief Commercial Officer Chris Sylvan served for more than a decade in the Royal Marines before moving into defence technology. Co-founder Junaid Hussain has started several technology companies. Former UK Defence Secretary Grant Shapps serves as chairman.
Skyhammer, the company's first product, is a tube-launched, radar-guided interceptor missile. In plain terms, it launches from a tube, locks onto a target using radar, and flies toward it at up to 700 km/h over a range of more than 30 kilometres. It is designed to destroy drones and slow-moving missiles at a much lower cost per shot than conventional air defence systems. Development started in January 2025, and flight testing began within six weeks. Two-thirds of the company's employees work in technical and engineering roles, and the company also employs veterans from Allied armed forces.
"This raise is testament to the incredible work of the entire Cambridge Aerospace team. By bringing together the best talent in the world with a singular mission to protect Allied skies from threats we have achieved a huge amount already. The addition of these funds will allow us to continue to scale our manufacturing and our delivery to meet the pace of threats, and the needs of Allied nations." — Steven Barrett, CEO of Cambridge Aerospace
DFJ Growth, founded in 2005, focuses on backing technology companies during periods of rapid growth. Its portfolio includes SpaceX and Neuralink. Other investors in this round included Lux, Accel, Lakestar, Never Lift, Ora Global, and Elad Gil & Co.
The company's valuation has climbed quickly. In April 2026, Cambridge Aerospace raised $200 million at a $1.3 billion valuation in a Series B co-led by Elad Gil & Co and Spark Capital. Four months later, the valuation has more than doubled to $3.4 billion. Before the Series B, the company had raised earlier rounds totalling approximately $136 million.
Several of the company's earlier backers returned for the Series C alongside new investors like DFJ Growth. UK Defence Secretary Wes Streeting described the valuation as "a great vote of confidence in Britain" and pointed to Cambridge Aerospace as an example of the government's goal of helping defence startups grow into billion-pound companies.
