Low-cost attack drones have exposed an expensive problem for air defense: governments need enough interception capacity to respond at scale without relying only on significantly more expensive weapons.
UK-based Cambridge Aerospace has raised $300 million in Series C funding at a $3.4 billion valuation, led by DFJ Growth. Lux, Accel, Lakestar, Never Lift, Ora Global and Elad Gil & Co also participated. The round comes roughly four months after a reported $200 million Series B that valued the company at $1.3 billion.
Founded in 2024 and led by CEO Steven Barrett, Cambridge Aerospace has moved quickly from formation into government procurement. Companies House records show the business was incorporated in September 2024, while Barrett says total funding raised since launch now exceeds $630 million.
The company is developing two main air-defense systems. Skyhammer is positioned as a lower-cost interceptor for drones and cruise missiles, while Starhammer is being developed for faster aerial threats. Cambridge Aerospace is also bringing key propulsion components in-house as it builds out its UK manufacturing base.
Government demand is already testing whether that model can scale. The UK Ministry of Defense announced plans in April to acquire Skyhammer systems for the UK Armed Forces and Gulf partners, and later confirmed a multimillion-pound contract after testing in Jordan. Skyhammer is now in production, with Cambridge Aerospace targeting 2,500 units per month by the end of March 2027.
The Series C will support manufacturing expansion, delivery against existing and new contracts, hiring and continued product development. Cambridge Aerospace is also one of three companies selected for the UK’s Low-Cost Air Defense Effectors programme, which is focused on affordable systems that can be produced at scale.
