SYOS Aerospace raises first institutional funding round

SYOS Aerospace has raised its first institutional capital in a round led by Outset Ventures and anchored by NZVC.

The autonomous vehicle maker will use the funding to expand research and development, increase production capacity and broaden its international presence. The investment also included Altered Capital and undisclosed strategic funds. Terms of the convertible note were not disclosed.

Jointly headquartered in the UK and New Zealand, SYOS builds uncrewed vehicles for air, land, sea and underwater use. Its products can be deployed individually or as part of a wider network through the company's AAIMS software, which provides a common autonomy layer across its systems.

The fundraising follows five years of growth driven by customer contracts rather than institutional backing. That period included a GBP £30 million agreement with the UK Ministry of Defence in 2025.

Founded in Mount Maunganui in 2021, the business won its first contracts in 2023 through competitive tenders with the UK Ministry of Defence. It now operates across NATO and the Indo-Pacific region and maintains a presence in Ukraine.

SYOS employs almost 200 people and has research, development and manufacturing sites in Fareham and New Zealand. Earlier this year, it secured a sovereign defence contract with the New Zealand Defence Force to provide a suite of uncrewed vehicles for experimentation, along with services and training.

Demand has risen after the company secured multiple contracts with nations including the UK, Ukraine, New Zealand and Canada. It has already delivered more than 150 uncrewed surface vessels to allied nations.

Production plans

Management said the latest capital will support the next stage of expansion as defence buyers seek faster access to autonomous systems. SYOS has developed production lines for products across different operational domains, and its systems have been used in Ukraine, where it has adapted products in response to front-line feedback.

The company has also broadened its product line. In March, its SA200 uncrewed heavy-lift helicopter completed autonomous mission trials, including take-off and landing from a moving platform, and the aircraft is ready for serial production. In May, it launched the SU10 uncrewed underwater vehicle, which is being paired with its uncrewed surface vessel offering.

Chief Executive Officer and Founder Sam Vye said the round marked an important step for the business after several years of contract-led growth.

"We've spent the last few years proving a startup can compete with some of the world's largest defence and technology businesses. Through first-class engineering and operational delivery, we've built a global team, delivered systems into service, and earned the trust of customers across allied nations. This capital will accelerate our next phase of growth: to expand our global footprint, invest further in our already very strong R&D capacity, and increase production capacity to meet growing customer demand," Vye said.

Investor backing

For investors, the deal adds to a growing pool of venture funding directed at defence technology businesses in allied markets. The backers pointed to the company's record of winning work and delivering hardware on contract revenue before taking outside institutional money.

"As we see every day, the rules-based order is falling apart, and allied democracies are realising that to protect their values they need the actual capability to do it. SYOS builds that capability. Its uncrewed systems ship in months, at volume, financed by customer contracts alone. We will be beside Sam as SYOS scales production in the UK and New Zealand and we will open doors for it in the US defence and technology industries," said Mark Pavlyukovskyy, General Partner, NZVC.

Outset Ventures Managing Partner Angus Blair is joining the SYOS board as part of the transaction. He said the company had built a manufacturing position in two markets while relying on customer revenue.

"Sam and the team built a defence manufacturer out of New Zealand and the UK, and paid for it with customer contracts on limited capital. That's rare. Allied nations need capability they can field in months, and SYOS is already delivering it across NATO and the Indo-Pacific," Blair said.