German manufacturer of dual-use drones achieves unicorn status during defence technology surge.
German drone manufacturer Quantum Systems has secured €160 million at a valuation exceeding €1 billion, marking its status as Europe's newest defense technology unicorn.
Quantum Systems develops electric, AI-driven autonomous surveillance drones that can be utilized for both military and civilian purposes.
These unmanned aerial vehicles (UAVs) can assist armed forces in intelligence gathering and enemy surveillance. Additionally, they are beneficial to farmers for monitoring crops, energy companies for inspecting power lines, and search and rescue teams in locating survivors.
Florian Seibel, co-CEO and co-founder of Quantum Systems, stated that the company is poised to become the leading provider of "robotized and AI-powered aerial intelligence solutions" in Europe for both defense and civilian uses. "The demand for independent aerial intelligence has never been more critical," he remarked.
The latest funding round, led by Balderton Capital from the UK, brings Quantum Systems' total capital raised to $284 million (€250 million), according to Dealroom data. This round also attracted investment from Airbus Defence and Space, Bullhound Capital, and existing angel investor Peter Thiel.
Quantum Systems has already secured significant defense contracts, including agreements with the German, Spanish, and British military forces. Its premier drone, the Vector AI, has been tested in Ukraine, which has emerged as a major testing ground for dual-use technologies.
Another European startup, Tekever, has actively deployed surveillance drones in Ukraine. Founded in Portugal, this dual-use company recently raised "tens of millions" in new funding at a valuation "exceeding $1 billion (€882 million)," according to its CEO, Ricardo Mendes, in a statement to the Financial Times.
Similar to Quantum Systems, soldiers employ Tekever's long-range UAVs to scout extensive territories and perform reconnaissance. Its drones have also been utilized to track small-boat migrant smugglers in the English Channel and monitor pipelines in Nigeria.
Both Quantum Systems and Tekever are capitalizing on the increasing investment in European defense technology, a trend driven by heightened security concerns linked to Russia's aggression and warnings from the Trump administration about potential cuts to US military support for Europe.
In 2024, defense tech startups in Europe raised $613 million (€540 million) in venture capital, the highest amount ever recorded, as reported by Dealroom. The majority of the funds were acquired by one company — Germany's Helsing.
Defense technology is a central theme of the Assembly, the invite-only policy track at the TNW Conference. This event is scheduled to take place in Amsterdam on June 19, just a week before the NATO Summit will convene in the city.
Tickets for the TNW Conference are currently available for purchase — use the code TNWXMEDIA2025 at checkout to receive an exclusive discount.
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German manufacturer of dual-use drones achieves unicorn status during defence technology surge.
German drone manufacturer Quantum Systems has secured €160 million at a valuation exceeding €1 billion, making it Europe’s newest defense technology unicorn.