As governments accelerate spending on technologies designed to respond to cyber threats, autonomous warfare and increasingly complex geopolitical risks, a new generation of defence companies is attracting growing investor attention. UK defence technology venture studio and investor Gallos Technologies has raised $50 million in fresh capital to expand its portfolio and back startups developing technologies for security, defence and resilience.
Fresh Capital for Gallos
The funding round, which remains open, was led by Ventura Capital and asset manager Aberdeen Investments, with existing investor Lansdowne Partners also participating.
Gallos will use the new capital to finance its next cohort of investments and strengthen the platform it provides to portfolio companies.
Unlike a conventional venture capital firm, Gallos describes itself as both a venture studio and investment business. It builds companies from the ground up while also investing in early stage businesses developing security focused technologies.
Its investment strategy focuses primarily on companies from Seed through Series B across cybersecurity, artificial intelligence and data analytics, defence technology, resilience solutions, autonomous systems and sensors.
Founded Around National Security Expertise
Gallos was founded in 2021 by Josh Burch and Dean Jones.
Burch brings more than 25 years of experience across national security, intelligence and commercial leadership, including more than 15 years in UK government national security roles and work at GCHQ. Jones is a former UK specialist military forces leader and brings operational defence experience to the company.
The firm’s model is built around combining that security expertise with investment capital and commercial networks.
Gallos says its understanding of national security threats allows it to assess emerging technologies from a different perspective and help founders navigate government and private sector markets that can be difficult for young companies to access.
Sir Jeremy Fleming Joins the Mission
The company has also attracted significant senior national security expertise through its advisory network.
Sir Jeremy Fleming, who served as director of GCHQ from 2017 to 2023, became chair of Gallos’ Strategic Advisory Board in 2023.
In that role, Fleming helps guide the firm’s strategic direction and supports its work with early stage companies developing security technologies. Gallos said his appointment strengthened its ability to connect founders with expertise around emerging security challenges and national security requirements.
Gallos has also built an advisory network of more than 100 chief information security officers and risk experts from major global companies, alongside senior security and national security leaders.
Building a Security Technology Portfolio
Gallos has already backed companies working across different parts of the security technology ecosystem.
Its portfolio includes Second Front Systems, a software company helping governments deploy commercially developed technology for national security missions, as well as cybersecurity company ContraForce and IoT security company ANGOKA.
The firm has also continued supporting portfolio companies through follow on investments and international expansion.
In its investment in Second Front Systems, for example, Gallos highlighted the importance of helping security technology companies access allied markets and government customers.
Defence Investment Enters a New Phase
The new funding arrives as governments and defence organisations increase spending on technologies capable of addressing rapidly changing threats.
Gallos argues that traditional defence capabilities are being reshaped by artificial intelligence, big data, autonomous systems and digital technologies, creating opportunities for startups that can address emerging vulnerabilities.
The firm estimates that the combined markets it targets across defence technology software, resilience technology, cybersecurity, AI and autonomous systems represent a substantial long term opportunity.
Scaling the Next Cohort
With $50 million available for new investments, Gallos is preparing to expand the number of companies it supports while continuing to provide operational and strategic assistance beyond capital.
The firm’s proposition is that defence and security startups need more than funding to scale. They also need access to experienced operators, government decision makers, enterprise customers and specialised security expertise.
By combining venture investment with company building and national security knowledge, Gallos is positioning itself to support a new generation of businesses developing technologies for an increasingly contested digital and physical world.