Veteran Ventures Capital Announces Investment in Vatn Systems, Supporting a New Era of Scalable Undersea Autonomy

MCLEAN, Va., Dec. 11, 2025 /PRNewswire/ -- Veteran Ventures Capital (VVC) announces its participation in the $60 million Series A financing of Vatn Systems (Vatn), a defense technology company building autonomous underwater vehicles (AUVs) for the US military, allied nations, and commercial customers. The investment marks Vatn's entry into VVC's Fund II portfolio, underscoring the firm's growing focus on scalable, dual-use autonomous systems that strengthen national security.

Founded in Rhode Island by lifelong maritime practitioners and seasoned defense engineers, Vatn Systems is redefining how undersea missions are conducted. The company develops low-cost, modular AUVs designed to operate in large numbers—enabling distributed sensing, rapid ISR, mine countermeasures, and emerging undersea effects missions. Vatn's platforms leverage a proprietary inertial navigation system and plug-and-play payload architecture, allowing operators to rapidly tailor vehicles for military, commercial, and scientific applications.

"Vatn exemplifies the kind of mission-driven innovation VVC was created to support," said Derren Burrell, Founder and Managing Partner of Veteran Ventures Capital. "Their team is fielding the undersea mass our national security enterprise urgently needs, and they're doing it with a level of technical rigor and operational intuition that's rare in this sector. We're proud to partner with BVVC, and to join Lockheed Martin Ventures, SAIC Ventures, Airbus Ventures, and other strategic investors who recognize the decisive advantage Vatn brings to the undersea domain."

"We're honored to partner with Veteran Ventures Capital," said Nelson Mills, CEO and co-founder of Vatn Systems. "Their team understands the pace and demands of the national security landscape, and they bring the operational and strategic insight that companies in this sector need as they scale. This investment accelerates our ability to build and deliver undersea mass for customers who require reliable, rapidly deployable systems at a fraction of the cost."

Vatn Systems has demonstrated rapid technical and commercial progress throughout 2025, delivering vehicles to U.S. government customers, conducting successful open-water demonstrations, and expanding production capacity to meet accelerating demand. The company's modular design philosophy allows new mission profiles to be integrated in days rather than months—an advantage that resonates across defense, offshore energy, port security, and environmental monitoring.

"Vatn represents exactly the kind of founder-led ingenuity we seek to back," said Craig Jaques, General Partner at Veteran Ventures Capital. "Their team has blended deep ocean experience with modern autonomy and manufacturing discipline, resulting in undersea systems that can be produced affordably and deployed at scale. As naval operations shift toward attritable, unmanned architectures, Vatn is exceptionally well positioned to become a category-defining player."

Beyond its defense mission set, Vatn's technology opens meaningful opportunities in civilian markets. Low-cost AUVs enable more persistent monitoring of coastal infrastructure, improved maritime domain awareness, expanded access for scientific research, and new tools for environmental stewardship—all areas where demand is growing as ocean resources become increasingly vital and contested.

About Veteran Ventures Capital

Veteran Ventures Capital invests in dual-use national security technologies, focusing on companies led by veteran entrepreneurs and leaders. Committed to advancing U.S. technological superiority, Veteran Ventures Capital provides capital, mentorship, and strategic guidance to high growth companies serving critical government and commercial markets. VVC's portfolio includes leading companies in defense, aerospace, cybersecurity, and other sectors essential to national security, including notable investments in Hidden Level, Cambium,Agile Space Industries, and Asylon Robotics, amongst others. For more information, visit www.veteranventures.us and follow the firm on LinkedIn.

About Vatn Systems

Vatn Systems is a leading defense technology company building autonomous underwater vehicles that can be deployed at scale for the US military and allies. Founded in 2023 by a team of maritime experts and military leaders, Vatn Systems is on a mission to be the next underwater defense prime in a world where autonomous systems dominate naval battlefields. Vatn's flagship products include the Skelmir S6 compact modular underwater effector and the Skelmir S12, a 12.75-inch diameter platform that merges the capabilities of a traditional AUV with the agility and performance of a lightweight torpedo, designed to attrit threats, deploy sensors and decoys, and support electronic warfare missions at scale. Both vehicles are powered by INStinct, Vatn's proprietary inertial navigation system that delivers precise, GPS-free navigation in harsh maritime environments at a fraction of the cost of traditional systems. For more information, visit www.vatnsystems.com and follow the company on LinkedIn.

Media Contact

For media inquiries, please contact: investorrelations@veteranventures.us

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SOURCE Veteran Ventures Capital