2025 UK Defence Tech Report

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Find the report here: Beauhurst UK Defence Technology Report

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For a third year, MD One Ventures is delighted to have partnered with Beauhurst to publish the 2025 UK Defence Technology sector report.

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Will McManners, MD One Founder and Managing Partner: “This report aims to help stakeholders understand the evolving dynamics of the defence tech sector, and to demonstrate the growing role of adaptable products and services in shaping funding patterns and investor returns.”

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Ed Ebber, Co-Founder and Partner. "The dawning realisation that we need supply chain security, energy security etc, many of which are best described as Government adjacent, is fuelling opportunities and solutions to underlying problems."

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After a strong 2024, when deal value more than doubled (104%). Equity investment into defence tech companies slowed in 2025, with deal numbers and deal value down. Overall, this reflects a cyclical pattern of investment rather than a significant shift in investor confidence, as recent years suggest deal activity can shift quickly, with stronger years in 2022 and 2024 and lower levels in 2023 and 2025.

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In the last three years, a number of defence tech and dual-use companies have secured large rounds of funding. The higher investment volume in 2022 was bolstered by a £106m raise by Oxa, the Oxfordshire based autonomous-vehicle software developer. In 2024, there were several large raises, including for materials technology companies Alloyed (£37.0m) and iCOMAT (£17.6m).

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While investment cooled in 2025, the dual-use sectors remained resilient. Two of the larger deals included £21.7m for satellite hardware company SatVu and £15.0m for location software company Labrys.

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We are glad to highlight again number of portfolio companies leading the way in their sectors featured in this report:  Materials Nexus, Untap, Labrys, Milvus and SatVu.