Australian GPS-Alternative Startup Raises $110 Million

 

 

“An Australian startup that helps aircraft, ships and other vehicles navigate GPS dead zones has raised $110 million, hitting Silicon Valley's prized unicorn status as it seeks to accelerate growth in the U.S. and Europe.

 

Advanced Navigation builds artificial intelligence-assisted hardware that provides accurate location data including in areas where GPS is deliberately jammed, unreliable or otherwise unavailable.

 

GPS -- short for Global Positioning System -- has long had dead spots, but its reliability has been further eroded by the emergence of cheap handheld devices that can drown out the satellite signals upon which it relies.

 

So-called jamming has been commonplace along the Russia-Ukraine border over recent years, and now the Strait of Hormuz, through which 20% of the world's oil is transported, is besieged by such electronic attacks.

 

Sydney-based Advanced Navigation seeks to avoid attacks by eschewing GPS entirely. Its bespoke units are packed with sensors that detect acceleration, velocity and other variables [1]. AI-powered software then combines and cross-checks data to provide an accurate location.

 

These so-called inertial navigation units, which range from the size of a matchbox to that of a Kleenex box, can be made for use in the air, on land, underground or underwater. Boeing, Airbus and iron-ore miner BHP are already customers.

 

Advanced Navigation, which was backed by KKR & Co., now wants to scale production and marketing in response to growing demand, Chief Executive Chris Shaw said.

 

The company completed its latest funding round this month at a valuation of more than $1 billion, Shaw said.

 

"It's not just for defense use. You've got all these oil tankers and everything getting lost in the strait because Iran and other people are jamming GPS in that region," Shaw said.

 

Against that backdrop, there is plenty of competition among companies trying to develop affordable and reliable GPS alternatives.

 

U.S.-listed Honeywell is spinning off its aerospace unit into a separate division, while France's Safran has sold its navigation technology to customers including Finland's defense forces.

 

California-based Anello Photonics is working on microchip-sized inertial-navigation devices.

 

Alphabet spinoff SandboxAQ and Australia's DeteQt are developing systems based on measurement of magnetic anomalies in the Earth.

 

"Geopolitical factors are really driving a lot of growth in our industry," Shaw said.

 

Advanced Navigation expects to make more than $100 million in sales this year and is cash-flow positive, Shaw said. The company was generating about $60 million in revenue when it last raised capital in 2022.

 

The latest Series C round was led by Australia's AirTree Ventures, which previously backed local startups including visual-design platform Canva. Australia's sovereign National Reconstruction Fund contributed $35 million.

 

AirTree's investment was the third-largest by the $460 million growth fund that closed last year, AirTree Partner Kelland Reilly said.

 

Advanced Navigation's cash-flow profile, presence in defense markets, and customer book had all become more attractive since it last raised capital, he said. Its valuation has doubled since then.

 

"They've really got the who's who list of customers that are buying the product. They're having a lot of success against some very large legacy companies, like a Honeywell or a Safran, who have been incumbents in this space," Reilly said.

 

Neither Honeywell or Safran responded to requests to comment.

 

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Stuart Condie writes about corporate news for WSJ Pro.” [2]

 

1. Advanced Navigation sensors measure motion, orientation, and position by utilizing inertial sensors (accelerometers and gyroscopes) and aiding sensors. They provide high-accuracy data on velocity, orientation (heading, pitch, roll), acceleration, and position, particularly in GPS-denied environments using technologies like laser velocity sensors (LVS) and GNSS.

Core Sensor Measurements

 

    Accelerometers: Measure linear acceleration and gravity, used to determine velocity and position.

    Gyroscopes: Measure angular velocity (rotational motion) to determine orientation.

    Magnetometers: Measure magnetic fields to determine heading.

    Pressure Sensors/Barometric Altimeters: Measure external pressure to determine altitude.

    GNSS Receivers: Determine absolute position, velocity, and time using satellite constellations.

 

Advanced and Specialized Sensors

 

    Laser Velocity Sensor (LVS): Uses infrared lasers to measure ground-relative 3D velocity with high precision, specifically for GNSS-denied environments.

    Wheel Speed Encoders: Measure wheel rotation for ground speed and distance.

    Fiber Optic Gyroscopes (FOG): Used in high-grade systems to provide superior accuracy in attitude and heading.

 

Advanced Navigation devices use inertial measurement units (IMUs) and AI-driven fusion algorithms to process this data for navigation in air, land, and sea applications

 

2. Australian GPS-Alternative Startup Raises $110 Million. Condie, Stuart.  Wall Street Journal, Eastern edition; New York, N.Y.. 19 Mar 2026: B10