The UK defence tech sector is changing quickly. New companies are building autonomous systems, defence software and AI, while established manufacturers continue to supply the hardware, sensors and components behind them.
Using Beauhurst data, we’ve ranked 100 UK-headquartered defence tech companies by the total equity funding they’ve raised. Across the wider cohort, companies have secured £1.78b through 309 equity rounds — with £776m raised in the first nine months of 2026 alone.
This isn’t a ranking of the UK’s largest defence contractors by revenue or order book. Instead, it highlights the UK defence technology companies that have attracted the most equity investment.
The UK defence tech sector
Defence tech covers companies developing technology for military, security and national defence customers. The sector ranges from long-established engineering businesses to software startups founded within the last few years.
The companies in our analysis broadly fall into three areas:
- Autonomous systems: uncrewed aerial, ground and maritime vehicles, plus the systems used to control them.
- Defence software, AI and cyber: data analysis, decision support, simulation, secure communications and cybersecurity for defence customers.
- Hardware, materials and components: electronics, optics, sensors, armour and specialist manufacturing for military applications.
Military and defence applies to 100 of the 101 companies in the wider Beauhurst cohort. Application software applies to 49, manufacturing to 38, and security and surveillance to 37.
The cohort has grown from 42 companies at the end of 2015 to 101 today — an increase of 140%. Unlike many of the sectors in our Top 100 series, new company formation is also accelerating. Thirteen companies in the cohort were founded in 2025, compared with seven in both 2023 and 2024.
The mix of companies reflects that change. There are 30 seed-stage companies and 23 at venture stage, alongside 28 established businesses and 19 at growth stage. One company is recorded as a zombie.
Defence tech funding in the UK
Companies in the wider cohort have raised £1.78b across 309 equity rounds.
Cambridge Aerospace leads the ranking with £445m. Founded in 2024, the company develops missile and drone interceptor systems. Chemring follows with £178m, ahead of Kraken Technology Group (£138m), Faculty (£69.6m) and Valarian (£54.9m).
Funding is concentrated among the biggest raisers. Cambridge Aerospace accounts for 25% of the total, while the top five companies account for 50% and the top 10 for 64%.
Revenue tells a different story. The largest figures sit with established manufacturers: Chemring reported £498m in its latest accounts, followed by TT Electronics at £481m, Cohort at £270m and Marshall Group at £235m.
Who is investing in UK defence tech companies?
The investor mix has changed as more capital has entered the sector.
By number of rounds, early-stage and grant-linked investors are among the most active. Crowdcube has participated in 12 rounds, Parkwalk Opportunities EIS Fund in nine, and Entrepreneurs First in six.
The largest figures by value come from international growth investors. Elad Gil & Co has participated in rounds worth £370m, Lakestar £340m, Accel £325m and Lux Capital £314m. These figures reflect participation in some of the sector’s largest rounds, rather than separate investments of those amounts.
Where are the UK’s defence tech companies?
London accounts for 40 of the top 100 companies, followed by the South East with 20 and the South West with 14.
The South West has a larger presence than in many of our other sector rankings, with long-standing defence activity around Bristol, Bath and Plymouth.
The East of England has six companies. The East Midlands, West Midlands, North East, Yorkshire and the Humber, and Wales have three each. Overall, companies in the ranking span 13 UK regions, including Northern Ireland and Scotland.
