Eastleigh-based Aquark Technologies and Fareham-based Kraken Technology Group are among 13 UK companies selected for their innovative defence technologies, with each contract worth up to £4 million as part of the Ministry of Defence’s (MOD) Commercial X programme.
The contracts aim to accelerate the delivery of advanced systems to the UK Armed Forces and mark an effort to bring new companies into the defence sector.
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Defence Secretary John Healey said: “This government is backing British innovators and entrepreneurs, doing things differently to deliver for our forces.
“These are contracts, not words or promises, and they mean that thirteen British companies, many of them new to defence, are receiving real investment to develop the technology our Armed Forces need.
“This is defence delivering growth right across the country.
“These companies may be small, but they all have the potential to become billion-pound FTSE 100 firms.”
Other winners are based across the UK, including in London, West Yorkshire, Devon, and Newport.
All 13 companies were founded after 2011, with most launched in the past six years.
Chris Isaac, chief executive and founder of SpaceAM, one of the contract recipients, described the impact of the funding.
He said: “Game changer! In just five weeks.. six new staff, our first commercial labs operational, top London VCs lining up to invest, and the ability to scale at pace with confidence. That’s what this Unicorn Fund has delivered.”
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The scheme is part of a wider government plan to boost defence procurement from SMEs by 50 per cent by May 2028, representing an additional £2.5 billion investment and bringing total SME defence spending to £7.5 billion.
The contracts are designed to give small businesses a stronger foothold in the sector and help them attract future private investment.
This programme sits alongside the MOD’s new Office of Small Business Growth, which offers a single point of access for SMEs looking to work with defence, and follows a recent investor event connecting defence innovators with private investors.
The contracts support technologies across quantum sensing, synthetic training, space manufacturing, secure communications, and more.
