Valarian has secured a USD $50 million Series A investment led by New Enterprise Associates, taking the British technology company’s total funding to USD $70 million.
The round marks NEA’s first defence and dual-use investment in Europe. Other participants included Lightbank, XTX Ventures, Sequel, Litquidity VC, and angel investors Gokul Rajaram and Nikesh Arora.
The new funding will support the rollout of Valarian’s digital infrastructure across government, defence and enterprise users. The London-based company builds systems for organisations handling sensitive data and using artificial intelligence tools.
Its main platform, ACRA, is designed to let customers deploy AI while keeping data within their own environment. Valarian’s broader product set aims to help organisations govern, secure and expand AI use across public and private sector settings.
The deal comes as ministers place greater emphasis on domestic control over AI systems, data and computing infrastructure. The argument has gained traction as governments seek to reduce reliance on external providers for sensitive digital operations.
Kanishka Narayan, Minister for AI and Online Safety, linked the investment to that wider policy debate.
“Today, AI is the defining currency of both hard and soft power. To shape our own destiny, in accordance with our values, it is imperative that we build Britain’s sovereign AI capabilities. Pioneering British firms like Valarian understand the challenge in front of us and are building the solutions that will help us deliver a safer and stronger Britain. Investments like these are helping to keep the UK at the frontier of AI development, and complement the work we’re doing through our Sovereign AI Fund, AI Hardware Plan and more to build Britain’s AI strengths,” said Kanishka Narayan, Minister for AI and Online Safety, UK Government.
Sovereign focus
For Valarian, the pitch centres on control. The company argues that the ability to retain control of critical data, systems and technology was until recently limited largely to defence organisations and a small group of heavily regulated institutions. But AI adoption is making those requirements relevant to a much broader set of users.
That framing helps explain investor interest in businesses offering infrastructure rather than end-user AI applications. As adoption widens, companies and public bodies are increasingly examining where data sits, who manages access, and how models can be used without giving up operational control.
Luke Pollard, Minister for Defence Readiness and Industry, said the investment reflected confidence in the sector.
“To strengthen our national security, we need more innovative British companies like Valarian building the technologies that will define our future. This announcement is a strong vote of confidence in the UK’s world-leading defence and dual-use technology sector, and in the UK’s ability to build the critical capabilities our security and prosperity depend on,” said Luke Pollard, Minister for Defence Readiness and Industry, UK Government.
Valarian was founded by Max Buchan and Josh McLaughlin and is headquartered in London. The latest round gives the company additional backing as it seeks to expand its presence in government, defence and commercial markets where data sovereignty is a procurement concern.
Buchan said the funding supports the buildout of domestic infrastructure for AI adoption.
“We’ve always believed Britain has the talent and ambition to be a global leader in AI. To do that, we need to build the sovereign digital infrastructure that allows government, defence and enterprise to adopt AI securely while remaining in control of their own data. This investment allows us to accelerate that work, strengthen sovereign AI capabilities and ensure more of the technology underpinning our future is built here in Britain,” said Max Buchan, Chief Executive Officer and Co-Founder, Valarian.
For NEA, the transaction extends a long-established technology investment strategy into a European defence and dual-use context. The venture capital firm said the decision reflects demand for new infrastructure layers as AI becomes more deeply embedded in sensitive environments.
Mustafa Neemuchwala, Partner at NEA, outlined the investor’s view of the market.
“The critical question of the AI era isn’t which model wins – it’s who controls the environment intelligence operates inside. Valarian answers that question with genuine defence-grade architecture. This is NEA’s first defence and dual-use investment in Europe, and we made it because Valarian is building the control infrastructure layer the sovereign AI era requires,” said Mustafa Neemuchwala.