British defense firm Cambridge Aerospace has secured $300 million in funding to develop anti-missile and anti-drone interception systems. This round of financing brings the company's valuation to $3.4 billion, solidifying its position as the highest-valued defense technology startup in the UK.

This marks the first time Cambridge Aerospace has publicly disclosed a major funding round since its inception. The round was led by San Francisco-based DFJ Growth, a key investor in Elon Musk's SpaceX.

CEO Steven Barrett stated that since its founding in 2024, Cambridge Aerospace has raised a total of over $630 million. Other notable investors include Spark Capital, Lux Capital, Accel, Ilad Gil Fund, and Lakestar.

The UK is home to few defense technology companies valued at over $1 billion, with maritime defense firm Kraken Technology Group being one of them.

Strategic allocation of funds for production expansion

Cambridge Aerospace plans to use the funds to expand production of two core interception systems. The first is the Starhammer rocket-powered interceptor, designed to target high-speed aerial threats like ballistic missiles. The second is the low-cost Skyhammer interception system, aimed at countering drones and cruise missiles.

The Skyhammer system is already in mass production, with the company targeting a monthly output of 2,500 units by the end of March next year. The Starhammer interceptor is expected to hit the market next year.

Barrett commented, "Our growth has been extremely rapid. We currently have 250 employees, with the majority based in the UK, while our operations in other countries continue to expand."

Leadership changes and regulatory compliance

Barrett revealed that former Conservative Defense Secretary Grant Shapps stepped down as company chairman in June. The company currently has no plans to appoint a new chairman. Authorities had previously determined that Shapps violated rules governing commercial roles for former government officials. Shapps maintained that his role was purely honorary, involving no chairmanship duties or board membership.

Barrett said, "The position was always honorary, so we do not intend to seek a replacement."

Government contracts and international expansion

Unlike many defense tech peers, Cambridge Aerospace has secured multiple contracts from the UK Ministry of Defence. One deal, worth millions of pounds, involves supplying Skyhammer systems to British forces and allied nations in the Gulf region.

UK Defense Secretary John Healey praised the Skyhammer system, stating, "This is exactly the low-cost interceptor our military needs to deter adversaries and protect national security."

Beyond the UK, Cambridge Aerospace has operational bases in Germany, Poland, Norway, Ukraine, and Australia.

Barrett noted that the company is also in discussions with the U.S. government about potential equipment supply. Official announcements from May indicate that a U.S. Army brigade responsible for air and missile defense in Europe and Africa has already tested the Skyhammer system in multiple exercises.