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Defence Tech and Public Markets Reshape UK Startup Scene

London's new PISCES exchange mints a fintech unicorn while US defence giants and sovereign funds pour millions into advanced military startups.

Signalpoint TeamBrief

Startup

Moneybox's £800 million valuation proves London's new PISCES market works — providing a vital liquidity alternative that could keep mature British startups from fleeing to foreign exchanges.

BackgroundThe LSE's Private Intermittent Securities and Capital Exchange System allows private firms to offer regular liquidity windows to early staff and investors. Historically, mature British startups faced intense pressure to list in New York or sell early due to a lack of domestic secondary markets.

Points
  1. The £45 million secondary transaction allows early staff and backers to cash out, solving a key recruitment and retention challenge for late-stage British startups.
  2. Facilitating the deal through PISCES represents a major validation for the UK's new trading infrastructure, potentially encouraging other mature private tech firms to stay in London.
  3. Moneybox's revenues exceeded £115 million in 2025, demonstrating strong underlying profitability that positions the platform well ahead of its eventual full public listing.
SourcesTNW: Moneybox becomes a unicorn on London's new Pisces market (opens in new tab)FinTech Futures: Moneybox to hit £800m valuation with employee share sale (opens in new tab)Salica Investments: Moneybox becomes a $1.1B unicorn testing London's new Pisces market with a £45M staff sale (opens in new tab)

Startup

Lockheed Martin's $100 million London office shows defence giants are turning to venture capital — bypassing traditional military R&D to quickly absorb advanced commercial technology.

BackgroundWestern defence giants are increasingly investing in early-stage software and dual-use tech to accelerate product development. Transatlantic defence interoperability has become a critical strategic priority for NATO allies as geopolitical tensions escalate across Europe.

Points
  1. The $100 million earmark will target dual-use software, advanced materials, and autonomous maritime and aerial systems, accelerating commercial technology adaptation for military use.
  2. Opening a dedicated London office highlights the UK's position as Europe's premier ecosystem for advanced defence technologies, attracting further international venture capital.
  3. The initiative aims to integrate British startup innovations directly into Lockheed Martin's existing weapons platforms, providing local founders with direct access to global military supply chains.
SourcesEU-Startups: US investor Lockheed Martin Ventures commits at least €87 million to Europe as it opens new office in the UK (opens in new tab)Defence Industry Europe: Lockheed Martin Ventures opens London office, targets at least $100 million for U.K. and European defense startups and allied supply chains (opens in new tab)

Startup

Kraken Technology's $1 billion valuation mints a new British defence unicorn — establishing that venture capital is now aggressively financing sovereign hardware to meet urgent NATO naval demand.

BackgroundAutonomous uncrewed surface vessels are increasingly critical for littoral security and maritime patrol missions within NATO territory. Kraken designs and manufactures these advanced, high-speed autonomous vessels from its dedicated facility in Hampshire.

Points
  1. The Series B was led by DTCP and backed by the British Business Bank and the NATO Innovation Fund, reinforcing strong sovereign support for domestic defence production.
  2. Kraken will use the capital to scale manufacturing of its modular autonomous vessels, including the K3 SCOUT and hybrid K4 MANTA, to meet rising international naval orders.
  3. The deal underscores intense investor appetite for sovereign defence technologies, marking a shift where venture capital aggressively finances hardware platforms historically funded solely by governments.
SourcesNotion Capital: Kraken Technology Group just closed a $175m Series B at a $1bn valuation (opens in new tab)Clifford Chance: Clifford Chance advises Kraken Technology Group through $175m raise at $1bn valuation (opens in new tab)

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