Kraken Technology Group secures sovereign investment

Kraken Technology Group, the UK-based uncrewed surface vessels (USVs) company, announced simultaneous funding commitments from major strategic investors, including the NATO Innovation Fund and the UK’s National Security Strategic Investment Fund (NSSIF), alongside European venture capital firm Superangel, according to a 23rd June press release. 

While the specific amount of funding was not disclosed, the investment aims to bolster the company’s rapid expansion, supporting continued development in manufacturing, research and development, international scaling, and rapid prototyping, the press release explains. The alignment of sovereign and intergovernmental funding is also indicative of the growing need for scalable, modular maritime systems across NATO.

Patrick Schneider-Sikorsky, Partner at the NATO Innovation Fund, underscored the strategic importance of this investment: “Dispersed and uncrewed maritime systems are vital to ensuring naval superiority and securing Allies’ interests in contested waters. Kraken’s cutting-edge technology delivers a force-multiplying edge over traditional fleets, enabling persistent presence and rapid response without putting sailors in harm’s way.” USVs and uncrewed submersibles are seen as holding the potential to level the playing field for NATO, which has reduced its anti-submarine warfare capabilities since the 1990s, and now must contend with Russia’s Northern Fleet and its advanced submarines like the Yasen-M. 

This is not the first funding round for the Kraken Technology Group. It has secured other private funding rounds to advance its technology and help build its production capabilities in Hampshire. These earlier investments have specifically supported the development of platforms such as the Kraken K50 precision engagement craft, laying the groundwork for its current growth trajectory.

There are a number of companies in the USV space like Saronic, which has secured hundreds of millions in funding. However, Kraken is already delivering production orders to NATO countries from its facilities in Hampshire, while Saronic appears to be focused on the US and establishing its footprint there. 

Company profile: Kraken Technology Group

Kraken specialises in cost-effective, open-architecture USVs for surveillance, force protection, and multi-domain operations. The current product lineup includes the K3 Scout, a high-performance, low-cost uncrewed surface vessel with a modular payload bay, with the K3 Scout Medium already in use on operational exercises with NATO. Demonstrating the adaptability of the Scout, Kraken presented a modified variant during SOF Week, which showcased its modularity and ability to integrate various mission systems, including counter-uncrewed aerial system (C-UAS) technologies. 

The company’s range also features the K4 MANTA, designed as an uncrewed surface/subsurface capability delivery platform, and the K5 KRAKEN, a maritime precision engagement gunship. Each of these modular platforms is designed for adaptable deployment across a spectrum of maritime and coastal operations, enhancing naval capabilities at lower cost and with reduced risk to personnel.

Calibre comment 

The Royal Navy has launched an initiative to help address its need for additional sensors in the Greenland, Iceland UK (GIUK) gap, which is called Project CABOT. The aim is to rapidly introduce a fleet of USVs and submersibles that are contractor-owned and operated in the short term, eventually transitioning to being government-owned and operated. The hope is that using autonomous and reusable sensors will enable the UK to ensure deterrence through increasing its ability to detect and track Russian submarines. 

While there are many companies that could potentially contribute to Project CABOT, being a British company is likely to be a key characteristic of the winning bid. Kraken’s heritage as a British manufacturer developing sovereign capabilities, combined with the UK’s NNSSIF’s involvement, may put it in a strong position to answer parts of the Project CABOT requirement, as well as others on the near horizon for the Royal Navy.