Maven Capital Partners has led a £3m growth funding round into Reading-based defence software business Applied AGI through its venture capital trusts (VCT) and enterprise investment scheme (EIS) vehicles.
The transaction sees Maven VCTs take the lead position alongside co-investment from the Maven Cognition EIS Fund and a syndicate of angel investors. Capital from the tax-advantaged structures will fund engineering team expansion and international business development as the developer transitions its sensor-fusion technology from prototypes to full commercial deployment.
While specific valuation terms and board seat allocations were not disclosed, the deal represents a rare growth-stage institutional equity round for a business that has funded its operations entirely through revenue to date.
Applied AGI has generated more than £5m in cumulative contract revenue since its founding in 2019, securing prime contracts with the UK Ministry of Defence as well as Tier 1 defence contractors across Europe and the US.
The investment reflects a broader shift among UK venture capital managers deploying retail tax-advantaged capital into dual-use defence technologies. Growth in sovereign security budgets and government mandates for sovereign artificial intelligence (AI) capabilities have driven heightened institutional interest in software that operates in contested or communications-denied environments. Applied AGI specialises in multi-sensor data fusion, enabling autonomous systems to identify and track targets when primary datalinks or vision sensors are degraded.
The statutory investment limits governing VCT and EIS funds require targets to meet strict age and asset tests, making Applied AGI’s capital-efficient history an ideal fit for retail tax-advantaged mandates seeking exposure to high-margin defence software.
Tom Girn, chief executive of Applied AGI, said: “We are delighted to welcome Maven as investors and partners as we move into the next stage of the company’s growth. This is an exciting time for the business and the Maven team’s belief in AAGI’s ability to transform Defence AI will help us to accelerate product deployment, take our technology to more customers and extend our competitive position.”
Luke Matthews, partner at Maven Capital Partners, added: “Applied AGI combines world-class technical expertise with a clear commercial opportunity in a rapidly evolving market. The technology’s ability to operate effectively in challenging environments, where conventional AI approaches can be less reliable, has the potential to create significant value for defence and security customers.”
