Tiberius Aerospace raised $4.5 million in September 2025. By then, it had already secured a contract with the UK Ministry of Defence worth about $5 million, plus production costs [Tectonic Defense, September 2025]. For a startup founded in 2022, that is a fast start in a slow-moving industry.
The company is not building just one thing. Its wedge is a dual-track strategy: a physical munition and the software to create more of them. The first is Sceptre, a 155mm liquid-fueled ramjet projectile designed to be fired from standard NATO howitzers but perform like a more expensive missile [Resilience Media]. The second is GRAIL, an AI-powered platform for designing, testing, and procuring weapon systems [Tiberius Aerospace, September 2025].
Together, they form what the company calls a "Defence-as-a-Service" model. The bet is that governments want to break the traditional procurement cycle, and Tiberius can sell them both the next-generation shell and the tools to develop the one after that.
A Two-Pronged Attack on Defense Procurement
The core proposition is acceleration. Sceptre aims to deliver missile-like range and speed from existing artillery tubes, a capability gap highlighted by modern conflicts. The company claims the projectile can reach Mach 3.5 and target ranges up to 150 kilometers [Army Recognition][DefenseTalks.com]. Tiberius says it has completed a successful demonstration, including ramjet ignition after launch from a 155mm howitzer [Calibre Defence, April 2026].
GRAIL is the longer-term software play. It is positioned as a marketplace and development environment intended to let governments and manufacturers collaborate on system design, run simulated tests, and manage procurement [Tiberius Aerospace, September 2025]. A key milestone came in January 2026, when GRAIL achieved 'Awardable' status on the U.S. Department of Defense's Tradewinds Solutions Marketplace, a digital catalog for vetted vendors [Joint Forces News, January 2026].
The Silicon Valley Team Taking on the Pentagon
The founding team brings a distinct Silicon Valley pedigree to a sector dominated by legacy primes. CEO Chad Steelberg was previously chairman and CEO of the AI firm Veritone [Forbes Technology Council]. Chief Strategy Officer Andy Baynes held senior roles at Apple and Google [Resilience Media]. COO Michael Martin was, until recently, the CEO of fitness platform Strava [TechCrunch, December 2023].
Their collective background in software, AI, and consumer tech is a deliberate contrast to traditional defense contracting. The argument is that modern weapon systems are as much about data and algorithms as they are about metallurgy, and that the development cycle needs a tech-sector pace.
The company's early traction with major institutions suggests the argument is gaining some hearing.
| Entity | Relationship Type | Reported Detail |
|---|---|---|
| UK Ministry of Defence | Development Contract | ~$5M contract for Sceptre development [Tectonic Defense, September 2025] |
| U.S. Army | R&D Agreement | Cooperative Research and Development Agreement (CRADA) for Sceptre program [Warsight, August 2026] |
| U.S. DoD (CDAO) | Marketplace Access | GRAIL platform listed as 'Awardable' on Tradewinds Solutions Marketplace [Joint Forces News, January 2026] |
Where the Bet Faces Its Hardest Tests
Skepticism in defense tech is a given. The risks for Tiberius are not about ambition, but about execution in a field with immense technical and commercial barriers.
- The valley of death. Moving from a development contract and a CRADA to a full-rate production award is the most perilous journey in defense. The $5 million UK contract is for development, not for buying thousands of shells. Scaling manufacturing for a complex liquid-fueled ramjet at a cost that beats existing missiles remains an unproven challenge.
- The software sell. Convincing risk-averse procurement offices to adopt a new software platform for core weapons development is a multi-year enterprise sales cycle. GRAIL's presence on the Tradewinds marketplace is a foot in the door, but it does not equate to widespread adoption or significant revenue.
- The dual focus. Building one breakthrough hardware product is hard enough. Building that while simultaneously developing and selling an enterprise software platform splits focus and capital. The company must prove each track can succeed independently before the promised synergy materializes.
The company's answer, implied in its model, is that each side de-risks the other. A successful Sceptre deployment validates GRAIL's simulation capabilities. GRAIL's adoption could lower the cost and time for developing follow-on systems, creating a recurring software revenue stream that is less lumpy than hardware contracts.
The Capital and the Calendar
The September 2025 founders' round was led by a syndicate of specialist investors, including Never Lift Ventures, Blacklake, firedrop VC, and Beaten Zone Ventures [Tectonic Defense, September 2025]. The $4.5 million is earmarked for product development, manufacturing capacity, and allied-government partnerships.
It is a relatively modest war chest for the ambitions on the table. The next twelve months will likely require a larger round, and the metrics that will matter are concrete hardware milestones and software contract signatures. The key watch points are a subsequent production order for Sceptre beyond the initial UK development deal, and a named, paid enterprise customer for the GRAIL platform outside of a marketplace listing.
For investors like Beaten Zone Ventures, the bet is that the team's tech velocity can compress a decade-long defense development cycle. The question for procurement chiefs is whether they are buying a single novel shell, or a new way to build all the ones that come after it.
Sources
- [Tectonic Defense, September 2025] Exclusive: Tiberius Raises $4.5M for Defense-as-a-Service | https://www.tectonicdefense.com/exclusive-tiberius-raises-4-5m-for-defense-as-a-service/
- [Resilience Media] Tiberius says its successfully tested Sceptre munitions that behave like more costly missiles | https://resiliencemedia.co/tiberius-says-its-successfully-tested-sceptre-munitions-that-behave-like-more-costly-missiles/
- [Tiberius Aerospace, September 2025] As NATO boosts defence spending, Tiberius launches GRAIL | https://www.tiberius.com/blog/as-nato-boosts-defence-spending-tiberius-launches-grail
- [Army Recognition] Sceptre targets 140 to 150 kilometres range | https://www.armyrecognition.com
- [DefenseTalks.com] Sceptre targets Mach 3.5 speeds | https://www.defensetalks.com
- [Calibre Defence, April 2026] Test firing of Sceptre demonstrated successful ramjet ignition | https://www.calibreddefence.com
- [Joint Forces News, January 2026] GRAIL achieves 'Awardable' status on Tradewinds | https://www.joint-forces.com
- [Forbes Technology Council] Chad Steelberg profile | https://councils.forbes.com/profile/Chad-Steelberg-Chairman-Veritone/52ea448a-5286-4fca-9a3f-dd063e3069cb
- [TechCrunch, December 2023] Strava appoints YouTube exec Michael Martin as new CEO | https://techcrunch.com/2023/12/11/strava-ceo-google-youtube-michael-hogarth-martin/
- [Warsight, August 2026] Tiberius signs CRADA with U.S. Army for Sceptre program | https://www.warsight.com