When Helsing secured a Series B funding round of $223 million, it signaled a clear resurgence of interest in defense within the tech investment landscape. Today, additional validation arrives in the form of an exclusive announcement to TechCrunch: Labrys Technologies, a U.K.-based defense tech startup, has raised $5.5 million in a seed round led by Germany’s Project A Ventures. Other participants include MD One Ventures, Marque VC, Offset Ventures, and Expeditions Fund. These funds will be utilized to expand development and research teams, as well as bolster the commercial sales team.
Labrys can be likened to a fusion of Slack, location tracking, and payment functionalities tailored for both military and humanitarian contexts. Although this description may seem complex, it aligns with the challenges the product aims to address.
In situations requiring swift responses, such as humanitarian crises, WhatsApp is commonly employed. Drawing on personal experience from founding the nonprofit Techfugees in 2015, it became apparent that both refugees and humanitarian workers heavily relied on WhatsApp for coordination. While effective, WhatsApp has its limitations. Verifying the legitimacy of a humanitarian worker, ensuring location disclosure, and facilitating resource or monetary transfers pose significant challenges.
Labrys CEO August Lersten highlighted the shortcomings of WhatsApp, particularly in managing large global teams due to end-to-end encryption. Labrys, however, offers a client dashboard akin to Slack or Microsoft Teams, allowing users to message entire teams or individuals while knowing their real-time location. Additionally, Labrys facilitates payments.
Founded by Lersten, a former Royal Marine Commando, and Luke Wattam, co-founder and COO with experience in the U.K.’s Ministry of Defence, FCDO, and U.K. allies, Labrys’ platform, Axiom C2 and Axiom Communicator, provides KYC/E verification, encrypted communications, task management, and geo-location for individual users. It also supports digital payments through Crypto stablecoins, addressing critical needs during humanitarian disasters.
Labrys claims successful deployments in Afghanistan, assisting in the evacuation of 5,000 persecuted Afghan minorities, and supporting the Ukrainian State Emergency Services during the Kakhovka Dam breach.
In a market where civilian and military solutions often overlap, Labrys stands out with its capability to connect with individuals on the ground. The recent $5.5 million seed round represents one of the largest in Europe for a defense tech startup, underlining the increasing interest of investors in the defense sector. The rise of “dual-use” products that cater to both civilian and military teams is evident, with the global Command and Control Systems market estimated at $22 billion in 2022, expected to reach $28 billion by 2028. European companies like Improbable, EclecticIQ, Living Optics, and Preligens have also secured substantial funding in the past year, reflecting the ongoing trend that saw VC-backed firms inject $7 billion into U.S. aerospace and defense companies last year.
