Scorpa's Tech @ Sea

Vatn Systems: Affordable, Scalable Autonomous Underwater Vehicles (AUV) for Maritime and Defense Applications

5–7 minutes

Image credit: vatnsystems.com

The maritime sector faces unique and pressing challenges when it comes to underwater operations. Unlike the surface domain, underwater environments limit or completely block GPS signals, restrict visual clarity due to turbidity or darkness, and reduce communication bandwidth to very low levels. Traditional underwater vehicles, whether manned submersibles, remotely operated vehicles, or advanced torpedo-class systems are extremely costly, slow to manufacture, and not easily deployed in large numbers. 

Yet, the need for reliable autonomous systems continues to grow in defense, offshore infrastructure monitoring, scientific research, and disaster response. Vatn Systems was established to fill this gap by creating autonomous underwater vehicles (AUVs) that are not only modular and scalable but also affordable and attritable. This approach makes them suitable for high-risk missions where the loss of a single unit does not carry devastating financial consequences. Their technology is designed to operate in GPS-denied, visually degraded, and communication-limited conditions, which makes them indispensable for naval security, search and rescue, environmental monitoring, and critical seabed infrastructure inspection.

Vatn Systems was founded in 2023 by Nelson Mills and Freddie Mills, two brothers who grew up immersed in maritime life. Nelson Mills, the CEO, is a lifelong sailor with previous experience leading hull development at Pure Watercraft, an electric boating startup. He has also worked with investment firms such as Link Ventures, Lux Capital, and Global Founders Capital, and holds both a BA and an MBA from Columbia University. His brother Freddie Mills, who serves as COO, is an expert in maritime operations and autonomous systems, bringing with him practical knowledge in vessel logistics and systems integration. Supporting them is CTO Geoff Manchester, a mechanical engineer and mariner with a strong background in hydrofoiling and high-performance maritime vehicles, and CRO Dan Hendrix, a former special forces diver with extensive experience in technology program management and government operations. Together, this founding team combines technical expertise, operational experience, and strong business acumen to push the company forward.

Vatn Systems has rapidly gained the trust of major investors in the defense and technology sectors. In November 2024, the company announced a $13 million seed round, which raised its total funding to $16.5 million. This round was led by DYNE Ventures and attracted participation from Lockheed Martin Ventures, RTX Ventures, In-Q-Tel (IQT), Propeller Ventures, SAIC Ventures, Cubit Capital, and Fortitude Ventures. In addition, previous backers such as Centre Street Partners, The Veteran Fund, Blue Collective, and Decisive Point also reinvested. The infusion of capital has enabled Vatn Systems to scale manufacturing capacity, expand its engineering team, and accelerate deployment of its AUVs. With backing from such influential defense-focused funds and corporations, the company has positioned itself not just as an early-stage innovator but as a serious contender in the defense technology ecosystem.

Vatn Systems’ portfolio centers on its flagship line of autonomous underwater vehicles, the Skelmir series. The smaller Skelmir S6, with its six-inch diameter, is designed for nimble operations in surveillance and inspection, while the larger Skelmir S12, at 12.75 inches, supports a wider array of missions ranging from reconnaissance and electronic warfare to torpedo-like payload delivery. Both vehicles are modular and can be customized with various sensors and payloads depending on operational needs. For seafarers, these vehicles reduce exposure to dangerous missions such as mine detection, underwater surveillance, or operations in contested waters. For companies, especially those in offshore energy and infrastructure, the AUVs provide scalable, cost-effective inspection and monitoring solutions without requiring expensive and risky manned dives. By designing vehicles that can be deployed quickly and in large numbers, Vatn Systems offers maritime stakeholders a reliable and affordable option for tackling complex underwater missions.

Image credit: vatnsystems.com

Vatn Systems offers several advantages that distinguish it from traditional maritime technologies. Its modular design makes the AUVs flexible, adaptable, and easy to configure for different mission types. The cost-effective, attritable nature of these vehicles allows operators to deploy them at scale, providing the coverage and redundancy needed in complex underwater operations. Their ability to function without GPS or reliable communications is particularly valuable in defense applications, while swarming capabilities expand their effectiveness in large-scale or distributed missions. Moreover, the company’s rapid prototyping and vertically integrated manufacturing process ensure faster production and deployment than traditional defense contractors. 

Vatn Systems’ technology has already begun proving itself in practical applications. The company’s Skelmir S12 AUV was deployed in early exercises with the U.S. Navy and Marine Corps, demonstrating its versatility as both a torpedo class platform and a reconnaissance system. Government clients were among the first to purchase production units, reflecting immediate defense interest in the technology. Beyond defense, the systems have potential use cases in search and rescue missions, where their ability to operate in turbid waters and relay communications can be lifesaving. They also present valuable tools for commercial sectors, such as offshore oil and gas or undersea cable operators, who require reliable, cost-efficient inspection and maintenance of subsea infrastructure. The swarming capability adds another dimension, allowing fleets of AUVs to create underwater communication relays or to survey vast areas more efficiently than a single craft could. These real-world tests and applications confirm the relevance of Vatn’s approach and hint at broader adoption in both military and commercial maritime sectors.

Vatn Systems has cultivated an impressive network of partners and clients to support its growth. A notable collaboration is with Palantir Technologies, which provides digital manufacturing and supply chain optimization tools to support Vatn’s Rhode Island facility. The company’s investors such as Lockheed Martin Ventures, RTX Ventures, SAIC Ventures, and In-Q-Tel—are not only financial backers but also potential strategic partners, given their deep ties to the defense industry. On the client side, government organizations, particularly within the U.S. Department of Defense, have already acquired Vatn’s AUVs for testing and deployment. The fact that the first production run of Skelmir S12 units was sold directly to government customers highlights the level of trust and demand the company has achieved within just two years of its founding. These partnerships and clients not only validate Vatn Systems’ technology but also provide the resources and networks needed to scale globally.

References

Contributor : Ariana tri asti
Reviewer : Imam Buchari, David Ratner

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