Liquid Instruments raises USD $50m in Series C round

Liquid Instruments has raised USD $50 million in a Series C funding round co-led by Keysight Technologies and Australia's National Reconstruction Fund Corporation. The deal also includes a commercial agreement between Liquid Instruments and Keysight.

The company sells software-defined test equipment designed to replace multiple traditional instruments with a single reconfigurable platform. It says engineers can use the system to create and deploy custom measurement tools more quickly than with conventional hardware-led setups.

Keysight's role extends beyond equity participation. The commercial arrangement is intended to support work on AI-driven instrumentation, reflecting a broader shift in test and measurement towards software-led systems that can be adapted through code rather than fixed-function hardware.

Liquid Instruments says its platform is used by thousands of customers worldwide across the technology, research and defence sectors. Named users include Apple, NASA and the US National Institute of Standards and Technology, as well as university laboratories, quantum companies and defence contractors.

The technology is based on work originating at NASA's Jet Propulsion Laboratory. Its core pitch is that a single instrument can be reconfigured for different tasks, reducing the need for racks of separate devices.

Industry shift

The investment is notable because Keysight is an established name in electronic test and measurement. Its backing of Liquid Instruments signals incumbent interest in software-based approaches that could reshape how engineers buy and use laboratory equipment.

Demand for test equipment has been driven by growth in semiconductor development, aerospace and defence programmes, quantum research and increasingly complex electronics design. In those fields, engineering teams often want tools that can be updated and tailored without requiring large-scale hardware replacements.

Liquid Instruments says the new capital will be used for product development, expansion of its AI-based platform, and broader commercial activity across sectors, including aerospace, defence, and semiconductors.

Australia's National Reconstruction Fund Corporation joined the round as part of its mandate to support domestic companies operating in strategic technologies. The government-backed investor has AUD $15 billion available for loans, equity investments and guarantees across several priority sectors, including defence capability and enabling technologies.

Its involvement adds a second layer of significance beyond Keysight's participation. While active in global markets, Liquid Instruments is also part of a group of Australian-founded technology companies seeking to scale internationally in fields tied to industrial policy and national capability.

"Keysight has long set the standard for precision, innovation, and trust in its solutions for the most complex engineering challenges, and its investment is a strong validation of our approach," said Daniel Shaddock, Chief Executive Officer and Co-Founder, Liquid Instruments. "As systems grow more complex, our users need more flexible, AI-driven tools, and this new partnership with Keysight will accelerate that shift."

Keysight pointed to a broader change in the structure of test systems, with software and AI playing a larger role in configuring and using instruments.

"The industry is shifting toward software-first and AI-enabled architectures," said Joaquin Torrecilla, Vice President of Software Transformation, Keysight Technologies. "Liquid Instruments extends this by using software and AI to directly shape hardware behavior, creating more adaptable instrumentation. Together with Keysight's extensive portfolio, this enables more scalable and integrated test solutions."

Growth plans

Liquid Instruments operates in a market where customers have historically relied on specialist boxes for functions such as signal generation, analysis and control. A software-defined model aims to combine those roles in a smaller number of programmable devices, potentially changing both procurement patterns and engineering workflows.

For customers, the appeal is partly practical. Research labs, chip designers and defence teams often need to change test configurations as projects evolve, and software-led instruments can, in theory, reduce the time and cost involved in setting up those systems.

The company also attracted public-sector backing aimed at strengthening domestic technology industries. The NRFC said Liquid Instruments represented the type of business it wants to support.

"Liquid Instruments exemplifies the kind of high-impact innovation that strengthens sovereign capability while competing on the world stage," said Mary Manning, CIO of the NRFC.

"Advances in instrumentation are central to scientific discovery," said Brian Schmidt, Nobel Laureate and Liquid Instruments board member. "More adaptable and accessible measurement technologies enable researchers and engineers to explore problems that were previously out of reach, accelerating progress across both fundamental science and applied engineering."