Tekever, a drone startup that specializes in dual-use, has secured €70 million ($74 million) in funding to develop its product further and enter new markets, with a particular emphasis on the United States
The news indicates a growing trend of smaller, technology-driven firms entering markets typically dominated by large “defense primes.”
It also demonstrates that the conflict in Ukraine has accelerated the development of unmanned aerial drones, significantly increasing their sophistication. Origin, an additional European drone startup, recently secured funding for its precision-strike drone system, which is presently operational in the country.
Baillie Gifford & Co., a Scottish investment company that has previously supported SpaceX, and the NATO Innovation Fund, a €1 billion defense and dual-use VC fund announced in 2023, led Tekever’s funding round.
The fund is affiliated with NATO and is dedicated to supporting entrepreneurs developing technology for defense, security, and resilience sectors.
In a civilian context, Tekever’s surveillance drones have been employed to monitor migrant traffickers in the English Channel. The company was established in Portugal and is active in the U.K. and France.
The ARX, the company’s largest drone, can direct several lesser drones to monitor the land, seascape, or battlefield.
Contrary to most conventional aerospace organizations, Tekever maintains complete control over its operations, including airframe design and manufacturing, payloads, avionics, software, data, and AI.
The company asserts that this enables it to promptly modify its products in response to the rapidly evolving landscape of contemporary warfare and consumer preferences.
According to Bloomberg News, Chief Executive Officer Ricardo Mendes emphasized that Europe must take a more proactive approach: “The war in Ukraine is near our borders, and [Europe] is falling behind in technological advancement.”
Before raising a Series A of €20 million from Ventura Capital and Iberis Capital in 2022, Tekever bootstrapped.
It is refraining from disclosing its valuation in this most recent Series B round.
Patrick Schneider-Sikorsky, a partner of the NATO Innovation Fund, stated to TechCrunch, “The drone market in Europe has experienced an exponential growth since 2022.”
At the NATO Innovation Fund, we are deeply interested in technologies that can significantly impact both the civilian and defense markets. We are delighted to support Tekever due to the company’s extensive applications in defense and ISR for businesses and governments throughout Europe.
Chris Evdaimon, Investment Manager of Private Companies at Baillie Gifford, stated, “We were drawn to Tekever’s drone-building strategy, which centers on a software-centric and vertically integrated model.”
Ukraine, the European Maritime Safety Agency, and the U.K.’s Home Office have all deployed Tekever’s drones.
In addition to existing investors Iberis Semper and Cedrus Capital, the round was also attended by the U.K.’s National Security Strategic Investment Fund and Crescent Cove Advisors (located in Silicon Valley).
