Investing in Kraken: Or why "Hardware is Hard" 

Rapid product iteration and scalability made software the natural starting point for venture-backed defense innovation. AI-powered analytics, cybersecurity solutions, and networked decision-making tools have transformed modern warfare. Hardware, by contrast, demands substantial capital investment, rigorous testing, and seamless integration with existing military infrastructures. Initially, military hardware was considered off-limits for startups—a domain best left to defense primes with the resources to manage complex procurement cycles and large-scale manufacturing.

Yet warfighters do not operate in the abstract—they need complete solutions that integrate software with hardware to be effective in real-world combat scenarios. Nowhere is this more evident than in Autonomous Maritime Systems, where AI-powered navigation must be paired with robust hull designs, advanced propulsion, and long-endurance energy systems to withstand the punishing conditions of the open sea.

Maritime autonomy is rapidly becoming a defining force in modern naval warfare, reshaping strategy, force projection, and operational effectiveness. As geopolitical tensions intensify across the South China Sea, the Arctic, the Arabian Gulf, and the Indo-Pacific, autonomous maritime systems are proving indispensable for ISR (intelligence, surveillance, and reconnaissance), logistics, and even offensive operations.

Meeting Kraken: A Different Approach to Maritime Autonomy

When we first met Mal Crease, the founder of Kraken, we were struck by both his unique approach and unconventional background. Unlike traditional defense primes, Kraken focuses on coastal and nearshore operations, where speed, modularity, and agility are paramount. And unlike most founders in the defense sector, Mal did not come from a military-industrial background—he came from Formula 1 and offshore powerboat racing.

Here was someone with deep expertise in design and manufacturing of high performance boats. 

Upon meeting the rest of the team, it became clear that Kraken was equally committed to the software side of autonomy, boasting some of the most serious experts in navigational AI and autonomous control systems.

A Full-Stack Approach to Maritime Autonomy

Kraken’s full-stack philosophy—seamlessly integrating AI-driven autonomy with advanced, attritable naval platforms—is reflected across its product lineup. Take, for example, the K4 MANTA, a low-signature, all-electric foiling Uncrewed Semi-Submersible Vessel (USSV) with the ability to submerge for covert infiltration to carry out reconnaissance or loitering missions. With these innovations, Kraken is pushing the boundaries of what maritime autonomy can achieve, redefining littoral and nearshore security with platforms designed for attritability, modularity, and operational flexibility.

We are proud to partner with Mal and his exceptional team of engineers, veterans, and operators as they open a new chapter in maritime autonomy.