In February, we welcomed VRAI to our UK portfolio. This Newcastle-based start-up is redefining simulation-based training by integrating performance analytics, helping organisations make more informed decisions.

VRAI already works with leading names such as the British Army, Kongsberg, and BAE Systems, as well as clients in offshore renewable energy. With its £4.2m Series A funding, the company is set to expand into the US — the world’s largest market for immersive training in aerospace, defence, and security — while also doubling its headcount and investing further in product development, sales, and marketing.

So, why did we invest? Here are four key reasons.

1. A game-changer in a high-growth market

VRAI brings real-time performance data to simulation-based training. This is a game-changer in industries where safety, cost, and efficiency are critical, from defence to offshore energy.

The company is well-positioned to capitalise on surging demand for immersive training, particularly in defence, where budgets are expanding rapidly. NATO defence spending rose 11% in 2024, and European members have increased military investment by 19%, fuelling the need for advanced training solutions.

At the same time, there’s a major industry shift towards virtual training, driven by cost savings and enhanced effectiveness. Consider this — operating a Eurofighter Typhoon costs over £100k per hour, while VR-based alternatives cost a fraction of that. Industry leaders like Lockheed Martin now require virtual simulators for every new vehicle they produce.

VRAI’s technology ensures that simulation data isn’t just collected, it’s meaningful, actionable, and precise, helping organisations optimise training outcomes. With the global simulation learning market projected to triple to nearly £36bn by 2032, VRAI is in the right place at the right time.

2. An exceptional founder and team

From our very first meeting, it was clear that Pat O’Connor had a unique perspective on the future of simulation-based training. His deep expertise and first-hand experience in military operations immediately stood out, making a lasting impression on me.

Before founding VRAI in 2017, Pat spent 20 years in the Irish Defence Forces, where he saw first-hand the limitations of traditional training methods. He served as Chair of the Irish Defence and Security Association, Deputy Director of the PR branch, and as a Reconnaissance Unit Commander in Liberia, Syria, and Israel. His experience in high-stakes environments shaped his vision for leveraging data to improve training effectiveness.

Pat isn’t just an industry expert — he’s a highly resourceful, intelligent, and personable leader who has built a world-class team around him. This combination of deep sector knowledge and strong execution ability was a major factor in our investment decision.

3. Expanding into the world’s largest market

With its latest funding, VRAI is setting its sights on the US — home to the largest simulation and training market in the world.

Expanding into the US is a significant milestone, unlocking opportunities with defence contractors, aerospace firms, and government agencies that are investing heavily in immersive training solutions. The US defence sector alone allocates billions annually to simulation-based training, and VRAI’s technology is well-suited to meet this growing demand.

This is where Beringea’s transatlantic expertise comes into play. With an established presence in both the UK and US, we have a long track record of helping scale-ups navigate the complexities of international expansion. Through our deep network of investors, advisors, and strategic partners, we’re well-positioned to help VRAI establish a strong foothold in the US market.

Successfully expanding into the US has been a turning point for many of our portfolio companies, and we believe it will be a key driver of VRAI’s long-term success.

4. A clear path to exit

The defence sector is one of the most active for mergers and acquisitions, with sustained deal activity in recent years. This presents a strong pathway for companies like VRAI to achieve a successful strategic exit.

Major defence contractors are actively seeking cutting-edge simulation and training technologies, with acquisitions being a key part of their growth strategies. Recent deals in the sector have shown attractive valuation multiples, making VRAI a compelling long-term investment opportunity.

Beyond defence, dual-use applications open up further exit opportunities. Sectors like renewable energy, aviation, and critical infrastructure are increasingly adopting immersive training solutions, making VRAI an attractive acquisition target across multiple industries.

With its scalable technology, growing customer base, and expansion into the US, VRAI is well-positioned to capitalise on strong exit opportunities in the years ahead.

VRAI is at the forefront of a transformation in simulation-based training. The combination of a fast-growing market, an outstanding founder, a strong US expansion strategy, and a clear exit pathway made this an unmissable opportunity for us.

We’re excited to be part of their journey and look forward to supporting their growth in the years ahead.