German drone maker Quantum Systems has raised €160mn at a valuation north of €1bn, becoming Europe’s latest defence tech unicorn.
Quantum Systems builds electric, AI-powered autonomous surveillance drones that are dual-use, meaning they can serve both military and civil purposes.
Defence forces can use the unmanned aerial vehicles (UAVs) to spy on enemies and gather intel. The drones can also be used by farmers to inspect their crops, by energy companies to check power lines, and by search and rescue teams to look for survivors.
Florian Seibel, co-CEO and co-founder of Quantum Systems, said the company was ready to become the European leader in “robotised and AI-powered aerial intelligence solutions” for both defence and civilian applications. “The need for sovereign, aerial intelligence has never been more pressing,” he added.
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The latest funding round, led by the UK’s Balderton Capital, brings Quantum Systems’ total capital raised to $284mn (€250mn), according to Dealroom data. The round also saw participation from Airbus Defence and Space, Bullhound Capital, and existing angel investor Peter Thiel.
Quantum Systems has already secured several major defence contracts, including with the German, Spanish, and British armed forces. Its flagship drone, the Vector AI, has been tested in Ukraine, which has become a major battlefield testing ground for dual-use technologies.
Tekever is another European startup that has surveillance drones in active deployment in Ukraine. Founded in Portugal, the dual-use firm recently raised “tens of millions” in fresh capital at a valuation “beyond $1bn (€882mn),” its CEO, Ricardo Mendes, told the Financial Times.
Similarly to Quantum Systems, soldiers use Tekever’s long-distance UAVs to cover vast areas and carry out reconnaissance. Its drones have also been used to search for small-boat migrant smugglers in the English Channel and monitor pipelines in Nigeria.
Quantum Systems and Tekever are both benefiting from a surge in European defence tech investment. This growth is partly fueled by rising security concerns — driven by Russia’s aggression and the Trump administration’s warning that it may cut US military support to Europe.
Defence tech startups in Europe raised $613mn (€540mn) in venture capital in 2024, the largest value ever recorded, according to Dealroom. The bulk of those funds was secured by just one company — Germany’s Helsing.
Defence tech is a key theme of the Assembly, the invite-only policy track of TNW Conference. The event takes place in Amsterdam on June 19 — a week before the NATO Summit arrives in the city.
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