Vatn Systems has closed a $60 million Series A funding round that strengthens its position as one of the fastest-growing manufacturers of autonomous underwater vehicles in the United States. The round was led by BVVC, with additional participation from Hanwha, Geodesic Capital, Airbus Ventures, Dauntless Ventures, Trousdale Ventures, and Veteran Ventures Capital. Major existing investors also joined the round, including DYNE Ventures, Propeller Ventures, Decisive Point Ventures, SAIC Ventures, Centre Street Partners, Cubit Capital, and Lockheed Martin Ventures.
The new investment marks one of the most significant financings to date in the AUV sector and reflects growing global demand for scalable undersea autonomy. And the new financing brings the company’s total funding to $76.5 million as it scales production, expands its team, and builds momentum in both domestic and international defense markets.
Founded in 2023, Vatn Systems develops autonomous underwater vehicles for the United States military, allied nations, and commercial operators. The company aims to become a new-generation underwater defense prime as autonomous systems reshape how the naval battlespace is contested and defended. Vatn’s product lineup includes the Skelmir S6 modular underwater effector and the larger Skelmir S12 platform, which integrates traditional AUV capabilities with the maneuverability of a lightweight torpedo. Both systems are powered by INStinct, the company’s proprietary inertial navigation technology designed to deliver accurate, GPS-free performance at lower cost than legacy systems.
The company’s expansion has accelerated following its first international contract win in Singapore. Vatn Systems is deepening cooperation with the U.S. Navy and Marine Corps while continuing to broaden its global customer pipeline. The Series A funding will support rapid hiring, expanded R&D efforts, and scaled manufacturing to meet rising operational and commercial requirements.
KEY QUOTES:
“Vatn Systems is on a mission to become the next underwater defense prime in a world where autonomous systems dominate the naval battlespace. Demand for affordable, scalable autonomous systems in undersea environments is accelerating rapidly. This funding strengthens our position as the leader in deployable AUV technology and enables us to expand our team, accelerate R&D, and scale manufacturing to capture this growing demand and win critical contracts both domestically and internationally.”
Nelson Mills, Co-Founder And CEO, Vatn Systems
“Vatn Systems has built a significant competitive moat in the AUV market through their advanced navigation technology, modular platform, and scalable manufacturing approach. Rarely have we seen a company execute with this speed and precision to achieve these growth rates in just two years. Their ability to deliver affordable, multi-mission systems at scale addresses a critical capability gap, and we’re proud to lead what we believe is the largest funding round in the AUV space.”
Joe Musselman, Managing Partner, BVVC
