Europe mints two new defence tech unicorns
Two European dual-use drone makers, Quantum Systems and Tekever, have joined the region’s small but growing list of defence tech unicorns as they each surpass a €1 billion valuation
May 07, 2025
2 min read
Two European dual-use drone makers have joined the region’s small but growing list of defence tech unicorns as they each surpass a €1 billion valuation—signalling venture capital's growing appetite for the sector.
Munich-based Quantum Systems and Lisbon-based Tekever raised new funding rounds amid heightened government interest in European-built surveillance and defence hardware.
Quantum Systems, which raised €160 million in a round led by Balderton Capital, was launched in 2015 and builds electric vertical take-off and landing (eVTOL) drones designed to carry out automated aerial intelligence.
The company, which already supplies NATO-aligned forces, became a tier-1 supplier to the UK Ministry of Defence after buying AirRobot, also based in Germany, in March. More recently, it has expanded into the UK market with the acquisition of Nordic Unmanned UK, a provider of drone products and services.
Michael Schöllhorn, CEO of investor Airbus defence and Space, said in a statement:
"As we can see from ongoing conflicts, Europe’s security will depend on connected, interoperable and multi-domain defence solutions - and the ability to adapt the warfighting capabilities with the speed of relevance."
10,000 combat hours
Lisbon-based Tekever says that its drones accumulated over 10,000 combat flight hours and contributed to the destruction of over £3 billion worth of Russian military assets. It also provides satellite-linked UAS platforms used by the UK’s Home Office for border monitoring,
The company's undisclosed round was led by Ventura Capital. Other investors comprised a mix of institutional and strategic backers, including Baillie Gifford, the UK’s National Security Strategic Investment Fund, and the NATO Innovation Fund.
The investment coincides with Tekever launching a five-year plan to invest £400 million development program in the UK, dubbed Overmatch, aimed at shoring up the UK’s defence industry with AI-driven technology.
While the US still dominates defence tech investment, traditionally risk-averse European investors are increasingly at ease with backing startups operating at the intersection of AI, autonomy, and aerospace.
Data from PitchBook, which tracks venture capital activity, shows that investment in early-stage European defence companies reached $626 million last year, up from $254 million in 2023 and $62 million in 2022. The largest VC round in the space last year was a €450 million round for AI defence software startup Helsig.