It comes as the company announces its first dual-use spin-out. 

BAE Systems has unveiled its new ‘Launchpad’ incubator designed to spin out companies into sectors beyond defence, helping them reach their full commercial potential. 

The initiative is designed to help small companies overcome the so-called ‘valley of death’ – the stage where early-stage technologies often fail to transition into commercially viable products – by supporting their development into independent startup businesses.  

The company announced the move on 6 February, citing alignment with the priorities of the UK’s recent Defence Industrial Strategy, such as rapid innovation, sovereign capability, and economic growth.  

The initiative includes a programme of support for the spin-out companies, provided by BAE Systems, including “space, guidance, and resources”. This allows them to leverage BAE Systems’ existing research and development efforts, covering areas such as AI, quantum, and advanced materials. 

Launchpad “allows us to bring to market agile startups that are increasingly vital to sectors beyond defence, including energy and advanced manufacturing”, BAE Systems’ Chief Technology and Information Officer, Julian Cracknell explained. 

In tandem with this announcement, BAE Systems revealed that the first Launchpad spin-out company – Rho-C – has been established. 

Rho-C has been built around a BAE Systems-developed technology – originally made for submarines – that can transmit power and data through solid materials, without the need for drilled cable routes.  

The startup is targeting early commercial applications in the oil and gas sector, where its innovators hope they can improve both efficiency and operational safety.  

The company is also in the process of closing an initial venture capital round, building on its technical foundations developed prior to establishment. 

Notably, Rho-C states it has “exclusive global rights from BAE Systems for the underlying technology”, demonstrating the autonomy the startup has following its spin-out journey.  

Rob Malkin, Chief Technology Officer at Rho-C, said that “we're currently working on our first operational unit, which would never have happened this fast without BAE Systems' support. They’ve given us access to their technology experts as well as help to set up and run our new company.” 

Going forward, BAE Systems says that future Launchpad ventures may involve collaborations with academia and technology specialists, noting opportunities regarding quantum clocks for radar and hyperspectral sensing.