Destinus is securing €200 million in preparation for an IPO. The manufacturer of cruise missiles aims for a valuation of €5 billion.

      Destinus, a Dutch defence startup, is reportedly aiming to raise €200 million at a valuation exceeding €5 billion as it prepares for an initial public offering in Amsterdam, according to Bloomberg. The company, which specializes in cruise missiles and autonomous drones, is looking for this funding based on projected annual revenues of around €500 million.

      Founded in 2021 by Mikhail Kokorich, a physicist and entrepreneur originally from Russia who renounced his citizenship in 2024 in response to the Ukraine conflict, Destinus has evolved from a hypersonic aviation research initiative into a significant player in Europe's defence industry. The startup employs approximately 750 professionals at production sites in the Netherlands, Germany, Spain, and Ukraine, producing over 2,000 cruise missile systems each year.

      Destinus's main product is the Ruta cruise missile system, which has been validated for operational use by the Ukrainian armed forces since 2023. In early 2026, the company introduced the Ruta Block2, which can carry a payload of 250 kilograms and has a range of up to 450 kilometers. The product lineup also includes the Hornet interceptor drone, currently under testing by the French Army, and autonomous strike platforms still in development.

      To date, Destinus has raised nearly €400 million, which includes €140 million from convertible instruments and shareholder loans, as well as a €50 million financing facility from Commerzbank secured in December 2025, marking the company's first commercial bank agreement. Last year, it also announced plans to acquire the Swiss startup Daedalean for $225 million, enhancing its AI and autonomous flight capabilities, which is among Europe's largest defence tech acquisitions.

      A significant recent advancement for Destinus is its partnership with Rheinmetall, Germany’s largest defence contractor. This joint venture, named Rheinmetall Destinus Strike Systems, was announced in April and aims to manufacture, market, and deliver cruise missiles and ballistic rocket artillery, with operations scheduled to start in the latter half of 2026. Rheinmetall will hold a 51% stake, while Destinus will retain 49%. This collaboration merges Destinus's design and engineering expertise with Rheinmetall's industrial production capabilities, addressing the gap between European defence needs and manufacturing limitations.

      The pre-IPO fundraising, if successful, would enable Destinus to list on the Amsterdam stock exchange. The global defence tech sector is experiencing a surge in investment; for example, US-based Anduril recently raised $5 billion at a $61 billion valuation. Also in Europe, Munich's Helsing is currently raising $1.2 billion at an $18 billion valuation, potentially ranking it among the continent's top five most valuable private tech companies. The defence tech venture capital market reached a record $49.1 billion worldwide in 2025, nearly twice as much as the previous year.

      Destinus's €5 billion valuation target, based on a 10x revenue multiple, is ambitious but aligns with current market trends. Helsing's recent funding round suggests a value of approximately 15x projected revenue, while Anduril’s valuation indicates a similar premium. These multiples signal investor confidence that increased European defence spending—fueled by the Ukraine conflict, tensions with Russia, and the EU’s ReArm Europe initiative to mobilise up to €800 billion over four years—will sustain demand for autonomous strike systems at volumes that traditional defence contractors may struggle to meet quickly.

      Kokorich's unique background adds both credibility and complexity to the company. Prior to founding Destinus, he established Russia's first private space firm, Dauria, in 2011, and later moved to the US in 2012, where he launched satellite companies Astro Digital and Momentus. Momentus attracted over $100 million in funding and was valued at $4 billion before merging with a SPAC. In 2021, Kokorich shifted to Europe to start Destinus. Despite renouncing his Russian citizenship, his origins remain a consideration for defence-focused investors, though this backdrop has not hindered partnerships with Rheinmetall, Thales, or the Ukrainian military.

      The European defence tech landscape is expanding beyond a limited number of unicorns previously making headlines. Recently, Norwegian counter-drone startup Stendr raised a pre-seed round. The EU has also launched the European Defence Industry Programme, with a budget of €1.47 billion, focusing on counter-drone procurement. The sector is transitioning from venture-backed prototypes to industrial-scale production, and Destinus, through its joint venture with Rheinmetall, its annual output of 2,000 missiles, and its operational history in Ukraine, is positioning itself as a company that has already made this transition.

      The success of the IPO and the valuation will depend on whether public market investors share the confidence demonstrated by private capital. Although European defence stocks have risen since 2022, the IPO pathway for defence tech startups remains limited. Destinus would be among the first to see if the