ANELLO Photonics Raises $25 Million Series B-2 To Scale Production Of GPS-Denied Navigation Technology

By Amit Chowdhry • Today at 2:43 PM

ANELLO Photonics, the creator of the Silicon Photonics Optical Gyroscope and a leader in solid-state, high-precision inertial navigation systems, has secured an additional $25 million in a Series B-2 financing round. The oversubscribed round was led by MESH, an electronics-focused venture capital firm, with participation from new investors Washington Harbour Partners alongside existing investors Lockheed Martin Ventures, Catapult Ventures, New Legacy Ventures, One Madison Group, IronGate Capital, and Mana Ventures.

The funding will accelerate ANELLO’s expansion and drive broader deployment of resilient navigation solutions for autonomous systems operating in GPS-denied and contested environments across land, air, and sea. The Santa Clara-based company’s technology portfolio spans more than 80 issued or pending patents.

ANELLO’s core product is the SiPhOG platform, a chip-scale inertial navigation system that delivers fiber-optic-class gyroscope performance in a compact, manufacturable form factor. The technology addresses a growing and urgent problem: Global Navigation Satellite Systems, including GPS, face increasing vulnerabilities from jamming and spoofing that are creating critical risks across defense and commercial sectors. Disruptions are estimated to cost billions globally and affect both everyday commercial activities and mission-critical systems. ANELLO’s silicon photonics-based inertial navigation technology provides continuous, high-precision positioning independent of external signals, making it a compelling alternative to legacy systems for autonomous platforms that cannot afford to lose positional accuracy in contested environments.

Lead investor MESH characterized the investment as a rare combination of breakthrough technology, real traction in mission-critical defense and dual-use markets, and a manufacturable form factor that creates a clear path to scale. MESH partner Tony Fai described ANELLO’s platform as having the potential to become foundational infrastructure for the next generation of autonomous systems. Co-Founder and CEO Dr. Mario Paniccia noted that the additional funding will enable the company to scale production, accelerate innovation, and deliver resilient navigation capabilities to meet rising global demand from customers operating in increasingly contested environments.

The financing reflects accelerating institutional interest in the GPS-denied navigation market as electronic warfare capabilities proliferate and autonomous systems become more prevalent across defense and commercial applications. ANELLO’s SWaP-C-efficient, chip-scale approach positions it to address a wider range of platform types and price points than legacy fiber-optic gyroscope systems, opening a significantly larger addressable market.

KEY QUOTES:

“MESH is excited to invest in ANELLO because they have built a truly differentiated, defensible navigation platform for a world where GPS cannot be assumed. By delivering fiber-gyro class performance in a chip-scale, manufacturable form factor — and pairing it with real traction in mission-critical defense and dual-use markets — ANELLO has the potential to become foundational infrastructure for the next generation of autonomous systems.”

Tony Fai, Partner, MESH

“Reliable navigation is fundamental to autonomy, safety, and mission assurance. This additional $25 million in funding will enable us to scale production, accelerate innovation, and deliver resilient navigation capabilities to meet the rising global demand.”

Dr. Mario Paniccia, Co-Founder and CEO, ANELLO Photonics