Cambridge Aerospace, a British defence start-up, is in talks to raise around $200 million in new funding at a valuation above $1 billion, according to reports that cite 'people familiar with the matter'.
The discussions come as the war in the Middle East intensifies scrutiny of air defence economics, particularly the cost imbalance between expensive interceptor missiles and the cheap attack drones they are designed to destroy. The company was founded by Steven Barrett, who serves as chief executive, and is chaired by former UK defence secretary Grant Shapps.
Cambridge Aerospace launched last year and previously raised funding from Spark Capital, the venture capital firm, at a valuation of $400 million.
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The start-up has unveiled two interceptor products: Skyhammer, a tube-launched missile with a range of up to 30 kilometres and a top speed of 700 kilometres per hour, which entered early production after testing began last year, and Starhammer. It is also developing a solid rocket motor called Nightstar.
The FT, which surfaced the report, said that Cambridge Aerospace had declined to comment on its report.
The recap
Cambridge Aerospace in talks to raise about $200mn new funding
Investors discuss valuation topping more than $1bn for start-up
Round not finalised and valuation could still shift
