Australia GPS alternative unicorn raises $110 million for expansion

Advanced Navigation develops AI-assisted hardware that provides precise positioning data

Author: Stewart Condie

An Australian startup that provides navigation for aircraft, ships, and other carriers in GPS blind spots has completed $110 million in funding, becoming a highly sought-after unicorn in Silicon Valley, and plans to accelerate expansion in the U.S. and Europe.

Advanced Navigation develops AI-assisted hardware that can deliver accurate positioning data even in areas where GPS is intentionally jammed, signals are unreliable, or completely unavailable.

Long-standing GPS signal blind spots have been a problem, and in recent years, the proliferation of inexpensive handheld jamming devices has further compromised its reliability, as these devices can suppress satellite signals that GPS depends on.

In recent years, signal jamming has become common along the Russia-Ukraine border; now, the Strait of Hormuz, which handles 20% of global oil transportation, is also under electronic attack.

Headquartered in Sydney, Advanced Navigation has chosen to completely bypass GPS to avoid such attacks. Its custom devices are equipped with multiple sensors that detect acceleration, velocity, and other variables, which are then fused and cross-verified by AI-driven software to produce precise location data.

These inertial navigation devices range in size from a matchbox to a tissue box and can be used in aerial, terrestrial, underground, and underwater scenarios. Clients include Boeing, Airbus, and BHP, a major iron ore mining company.

The company has received investment from KKR. CEO Chris Condie said the company plans to use this funding round to expand production and marketing to meet growing demand.

Condie stated that the company completed its latest funding round this month, with a valuation exceeding $1 billion.

“This is not just for defense. In the Strait of Hormuz, many oil tankers and ships are losing their way due to GPS interference from Iran and other sources,” Condie said.

Against this backdrop, many companies are racing to develop cost-effective, reliable GPS alternatives, leading to fierce market competition.

U.S.-listed Honeywell Aerospace is spinning off its aerospace division into an independent business unit; French defense contractor Safran has sold navigation technology to clients including the Finnish Defense Forces.

California-based Anello Photonics is developing chip-scale miniature inertial navigation devices. Alphabet’s spin-off SandboxAQ and Australian startup DeteQt are working on navigation systems based on measuring Earth’s magnetic anomalies.

“Geopolitical factors are definitely driving significant growth in our industry,” Condie said.

He added that Advanced Navigation expects to surpass $100 million in sales this year and has already achieved positive cash flow. In 2022, the company’s revenue was about $60 million.

The latest Series C funding was led by Australian venture capital firm AirTree Ventures, which has also invested in local startups like Canva. The Australian National Reconstruction Fund contributed $35 million.

AirTree partner Kaland Riley said this investment was the third-largest in its $460 million growth fund closed last year.

He noted that since the last funding round, Advanced Navigation’s cash flow, defense market positioning, and customer base have become more attractive, with its valuation doubling.

“Their client list is among the top in the industry. They’ve achieved considerable success competing against established giants like Honeywell and Safran,” Riley said.

Honeywell and Safran did not respond to requests for comment.

Advanced Navigation has deployed over 100,000 navigation systems, with about 50% of revenue from the U.S., 30% from Europe, and the rest from the Asia-Pacific region.

Condie explained that former Australian Prime Minister Malcolm Turnbull is chairman of the board, and former CIA director and KKR partner David Petraeus serves as a strategic advisor.

“In recent years, our performance advantage over competitors has actually been expanding,” Condie said. “We can beat them in their home markets, which I think is a very positive sign.”

Advanced Navigation plans to establish a base in Huntsville, Alabama, to improve its chances of winning bids from clients who prioritize security and prefer to work with domestic U.S. companies.

“This will open more doors for us,” Condie said.