Terra Industries, a Nigeria-based defence technology startup, has closed a $11.75 million seed funding round, ranking among the largest seed raises by an African startup to date. The funding will support the company’s ambition to scale locally manufactured security and surveillance systems across the continent.
The round was led by 8VC, the Silicon Valley investment firm founded by Palantir co-founder Joe Lonsdale. Other investors include Lux Capital, Valor Equity Partners, and SV Angel, alongside several angel backers. Alex Moore has joined Terra’s board following the investment.
The deal stands out not only for its size, but for how sharply Terra’s model diverges from the dominant African startup playbook.
Why Terra’s Seed Round Is Unusual
Hardware-First Strategy
Unlike many venture-backed African startups focused on fintech or consumer software, Terra is building physical defence infrastructure. The company manufactures drones, surveillance towers, and ground-based monitoring systems, operating a 15,000-square-foot drone factory in Abuja, which it describes as the largest of its kind in Africa.
This hardware-led approach requires heavy upfront capital and longer development timelines, factors that typically deter early-stage investors.
A Direct Bet on Defence and Security
Terra operates in the defence and critical infrastructure protection sector, securing assets such as power facilities, pipelines, and mining operations. The company says it already protects infrastructure valued at approximately $11 billion and has secured its first federal government contract.
Defence is traditionally seen as a high-risk, slow-moving sector due to regulatory hurdles and government procurement cycles, making Terra’s traction particularly notable.
Founders in Their Early Twenties
Terra was founded by Nigerian engineers Nathan Nwachuku and Maxwell Maduka, both in their early twenties. Leading a defence manufacturing company at that age is rare, especially in an industry that demands technical depth and strong government relationships.
Foreign Capital Dominates the Round
All $11.75 million in funding came from international investors, with no African institutional funds participating. For a company manufacturing in Africa and serving African governments, the absence of local capital highlights how global investors are identifying opportunities that regional funds have largely overlooked.
Purely Commercial Business Model
Terra does not follow a traditional impact-investing framework. Instead, it operates a commercial enterprise model, selling hardware and data services directly to clients. The company reports over $2.5 million in revenue, reinforcing its position as a revenue-driven defence technology business rather than a development-focused initiative.
Expansion Plans and Technology Platform
The fresh capital will be used to expand Terra’s Abuja manufacturing facility, grow its AI and software engineering teams, and establish software development offices in San Francisco and London. Hardware production, however, will remain fully based in Africa.
Terra’s systems are powered by ArtemisOS, a proprietary platform that aggregates real-time surveillance data and generates alerts when threats are detected.
What This Means for African Venture Funding
The backing from firms like 8VC and Lux Capital suggests rising global interest in African-built defence and infrastructure technology, particularly as security threats continue to undermine economic growth across the continent.
While it is too early to call this a broader shift in African venture capital priorities, Terra Industries is demonstrating that hardware, manufacturing, and defence can attract venture-scale funding when execution and market demand align.
For now, the company has the capital and investor confidence to demonstrate that Africa can build and scale world-class defence technology from within the continent.
