‘Squeamish’ no more: Mount Maunganui military drone maker Syos taps three local funds for capital
New Zealand drone manufacturer Syos has secured its first institutional funding round from three local venture capital firms. The company, which produces drones for the conflict in Ukraine, previously struggled to raise capital locally due to ESG policies regarding dual-use military technology.
Why it matters
This highlights a shifting investment landscape in New Zealand, where venture capital firms are beginning to reconsider their stance on dual-use and defense-related technologies.
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Syos, the fast-growing Mount Maunganui maker of drones used in the Ukrainian conflict, says it’s strengthened its balance sheet with funds raised from three Kiwi venture capital firms.
A local VC round wasn’t always on the cards.
At the 2024 New Zealand Aerospace Summit in Christchurch, Syos founder Sam Vye said his firm turned to high-net-worth individuals (who included Sam Morgan, Kent Baigent and Mark Tapper) for capital after being snubbed by local funds.
“We couldn’t raise from New Zealand VCs because every single group – well, most groups – couldn’t invest in dual-use technology because it was against their investment criteria and ESG [environmental, social and governance] policies,” Vye said.
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