Future Thinking: Defence & Security

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UK Innovation Science and Seed Fund is unleashing support for Defence and Security Startups

The £102m UK Innovation and Science Seed Fund (UKI2S), independently managed by Future Planet Capital, is unleashing support for Defence and Security Investment into UK-based startups.


The £18m pioneering Defence and Security Seed portfolio (D2S), part of UKI2S’s national fund, will focus on cybersecurity, hardware, IoT, robotics, sensors, with a primary emphasis on dual-use technologies that have commercial applications and specific defence or military applications.


Since being launched in 2022, D2S has already invested £2m across five Defence & Security start-ups, and is actively looking to deploy the remaining £16m. The fund is positioned to provide much-needed funding to early-stage startups and spinouts. The overarching aim of the fund is not just to provide investment, but to enable these organisations to increase scalability and continue to innovate new ideas that could fundamentally alter the industry’s landscape.


While defence and security investment has increased exponentially in recent years, it notably lags behind other industries.


This portfolio serves to rectify this imbalance, empowering early-stage organisations in the industry to be able to research, develop and manufacture nationally important defence and security technologies.


Previous opportunities provided by UKI2S have been extremely successful, delivering a return of £25 in private sector investment for every £1 invested by UKI2S public partners. The impact that the D2S could have, following this trend, may mean a total return of £450 million, drastically boosting the industry.


Whilst the focus of this portfolio is defence, the D2S aims to bridge the gap between the public and private sector, facilitating the innovation of ‘dual-use’ technologies - innovations that serve both commercial, and specific defence and military applications. The fund aims to serve a dual purpose: it seeks to foster growth in key security technologies, while simultaneously boosting the UK’s economy. This bridging of the gap between the public and private sectors underscores the holistic approach being taken to fuel growth and innovation.


The impact of the D2S is already visible, with several companies having received funding already.


Silicon Microgravity (SMG), a spinout from the University of Cambridge, recently received £500k D2S funding from UKI2S. The initial investment has acted as a gateway for further financial backing, allowing them to gain access to the Defence Innovation Loan from the Defence and Security Accelerator (DASA).

“UKI2S have been more than just an investor to us. The team were fundamental in helping to get our Seed funding round away and have continued to provide valuable input and support particularly with links into the defence ecosystem and strategic advice.”


- Francis Neill, CEO of SMG

Other organisations like Halo’s X-Ray in Nottingham, Honuworx in Aberdeen, and Qdot from Oxford’s Thermofluids Institute have also gained from this crucial fund.


The D2S portfolio will persist as a cornerstone in the strategy to bolster national security through innovation.


UK-Based businesses who are leveraging their existing science and knowledge base to look into further strategic applications, such as defence and security, will continue to be supported through the fund.


This seed fund benefits from the backing of several prestigious public bodies, including the Ministry of Defence, UK Research and Innovation and others. These organisations are not only financial sponsors, but are committed to nurturing UK businesses to expand the UK’s technological capabilities.


Find out more about Future Planet Capital by visiting our website.