Vatn Systems Raises $60 Million Series A to Redefine Underwater Naval Warfare at Scale

Leading defense tech company strengthens position as the largest AUV manufacturer in the US with record-breaking funding round

PORTSMOUTH, R.I., Dec. 10, 2025 /PRNewswire/ -- Vatn Systems, a defense technology company building autonomous underwater vehicles (AUVs) for the US military, allied nations, and commercial customers, today announced it has raised $60 million in Series A funding, bringing total funding to $76.5M. The round was led by BVVC, with participation from new investors such as Hanwha, Geodesic Capital, Airbus Ventures, Dauntless Ventures, Trousdale Ventures, and Veteran Ventures Capital. Major existing investors also participated in the round, including DYNE Ventures, Propeller Ventures, Decisive Point Ventures, SAIC Ventures, Centre Street Partners, Cubit Capital, and Lockheed Martin Ventures.

"Vatn Systems is on a mission to become the next underwater defense prime in a world where autonomous systems dominate the naval battlespace," said Nelson Mills, co-founder and CEO of Vatn Systems. "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."

"Vatn Systems has built a significant competitive moat in the AUV market through their advanced navigation technology, modular platform, and scalable manufacturing approach," said Joe Musselman, Managing Partner at BVVC. "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."

The Series A announcement follows significant momentum for Vatn Systems, including the company's first international contract win in Singapore. The company continues to deepen partnerships with the U.S. Navy and Marine Corps while expanding its global customer base.

About Vatn Systems
Vatn Systems is a leading defense technology company building autonomous underwater vehicles that can be deployed at scale for the US military and allies. Founded in 2023 by a team of maritime experts and military leaders, Vatn Systems is on a mission to be the next underwater defense prime in a world where autonomous systems dominate the naval battlespace. Vatn's flagship products include the Skelmir S6 compact modular underwater effector and the Skelmir S12, a 12.75-inch diameter platform that merges the capabilities of a traditional AUV with the agility and performance of a lightweight torpedo, designed to attrit threats, deploy sensors and decoys, and support electronic warfare missions at scale. Both vehicles are powered by INStinct, Vatn's proprietary inertial navigation system that delivers precise, GPS-free navigation in harsh maritime environments at a fraction of the cost of traditional systems. For more information, visit www.vatnsystems.com and follow the company on LinkedIn.

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SOURCE Vatn Systems