Maritime security startup Kraken raises $175M, becomes unicorn

Europe’s latest defence unicorn was born the moment the Royal Navy dropped a robot boat from a transport plane at 1,300 feet. Now, the company behind that stunt has raised $175 million (€152.9 million) in a Series B round, pushing its valuation past the billion-dollar mark. Kraken Technology Group, a British manufacturer of uncrewed surface vessels, announced the raise this week, officially crossing into unicorn territory.

The round was led by Digital Transformation Capital Partners (DTCP), with a backer list that reads like a who’s who of Europe’s rearmament push. Participants included the British Business Bank, the NATO Innovation Fund, and Germany’s Rheinmetall, alongside Inocea Group and a group of European VCs. Earlier investors, such as the UK’s National Security Strategic Investment Fund and Speedinvest, converted their stakes into equity.

Cheap, fast, and already at war

Kraken builds dual-use composite boats that operate without any crew on board. Its lineup ranges from the low-signature K3 SCOUT to the high-endurance K5 KRAKEN. A third vessel, the K4 MANTA, skims the surface before submerging for covert missions. The company’s pitch centers on speed and modularity over sheer size. These small hulls can be reconfigured for surveillance, logistics, anti-submarine warfare, or precision strike.

These are not mere prototypes. Over the past year, Kraken has secured contracts from the UK Ministry of Defence, NATO’s European partners, and USSOCOM. The company says its platforms are now deployed in several active conflicts. Just days before the funding announcement, the Royal Navy airdropped a K3 SCOUT from an A400M aircraft at 1,300 feet , a world first that allows a sea drone to deploy without needing a port or a nearby mothership.

Built with partners, not shipyards

Kraken’s business model sets it apart from its biggest competitor. Instead of operating its own shipyards, the company builds through established manufacturers. These include Rheinmetall in Germany, Anduril in the United States, and Inocea’s Davie Shipbuilding in Canada. More partnerships are in the works for the Middle East and the Indo-Pacific.

The contrast is sharp with Saronic, an Austin-based startup that raised $1.75 billion in April at a $9.25 billion valuation and runs its own shipyards. Kraken is betting that a lighter, partner-led approach can scale faster and reach NATO buyers sooner than pouring steel itself.

Europe’s defence-money moment

This funding round arrives amid a gold rush. Venture funding for defence tech hit a record $49.1 billion in 2025, as Europe scrambles to build sovereign capability while rearming. Kraken joins a wave of massive European raises, from Stark Defence’s €500 million to BAE-backed funds built for the sector. Its boats sit alongside the autonomous systems already fighting in Ukraine.

“The maritime domain is profoundly under-invested,” said DTCP partner Ole Aguirre. He argued that Kraken had “swiftly responded to NATO requirements” with affordable, high-speed boats.

Why it matters

Kraken’s founder, Mal Crease, spent 20 years chasing offshore powerboat records before pivoting to defence in 2020. His bet: the next edge at sea is not a bigger warship but a swarm of cheap, fast, uncrewed ones. Ukraine proved the point when its sea drones crippled Russia’s Black Sea Fleet. With NATO wiring autonomy into its defences and $1 billion behind him, Crease now has the money to build that swarm.