Ukrainian fund backs UK “Iron Dome” start-up with $130 million investment

Cambridge Aerospace, a British start-up developing low-cost anti-missile and drone interception technology, has raised over $130 million (£96 million) in funding, including backing from Ukrainian fund D3, supported by Google billionaire Eric Schmidt.

The company, founded just a year ago, is working on a series of interception systems, including its lightweight Skyhammer rockets and the high-speed Starhammer for faster targets, alongside new rocket motor technology named Nightstar. Cambridge Aerospace plans to produce these interceptors in “high numbers, potentially thousands per month,” including at a new factory in Norfolk.

Speaking to The Telegraph, CEO Steven Barrett emphasised the urgent need for cost-effective air defence in the UK and Europe, noting that the company has been in “extremely close discussions with the UK Ministry of Defence” and aims to deploy systems as soon as possible. Barrett highlighted the lack of a domestic supply chain for solid rocket motors, which the company is building from scratch.

The start-up has attracted significant venture funding from European investors, including Spark Capital, Lakestar, Lux, Accel, and D3. Over the past summer, Cambridge Aerospace closed a $100 million funding round. The company’s chairman is former UK Defence Secretary Grant Shapps.

Eric Schmidt, who has been investing in defence technology since leaving Google, has also supported Ukraine’s deployment of drones against Russia, warning that “drone war is the future of conflict.” Barrett noted that the war in Ukraine has changed investor attitudes toward defence technology, framing it as part of ESG efforts to protect democracy.

Cambridge Aerospace plans to debut its air defence systems this week at the DSEI security trade show in London, with technology compared to Israel’s Iron Dome anti-missile shield.

By Vugar Khalilov