Tekever, a startup specializing in dual-use drones, has successfully secured a funding of €70 million ($74 million) to fuel its expansion into new markets, more specifically the United States. This recent development highlights the growing trend of tech-based startups making their mark in sectors typically monopolized by larger defense companies.
The rapid evolution of unmanned aerial drones, in part due to the rapid technological advancements spurred by the conflict in Ukraine, is also evident. Just last month, Origin, another drone startup from Europe, obtained funding for its precision-strike drone system currently employed in Ukraine.
The funding round for Tekever was spearheaded by Scottish investment firm Baillie Gifford & Co, previously an investor in SpaceX, and the NATO Innovation Fund. This €1 billion venture capital fund, announced in 2023, focuses on startups that create technologies for sectors such as defense, security, and resilience.
Originally established in Portugal, Tekever operates in the UK and France as well. Its surveillance drones have found civilian applications, like tracking migrant smugglers in the English Channel. The company’s largest drone, the ARX, can command multiple smaller drones for land, sea or battlefield surveillance.
Tekever, unlike most traditional aerospace companies, oversees every aspect of its operations – from airframe design and manufacturing to payloads, avionics, software, data, and AI. This comprehensive control allows them to swiftly adjust their products based on customer requirements and the ever-evolving landscape of modern warfare.
Ricardo Mendes, CEO of Tekever, stated in an interview with Bloomberg News that Europe needed to accelerate its technological growth, given the conflict in Ukraine on its borders. Prior to this funding, Tekever had raised a Series A of €20 million in 2022 from Ventura Capital and Iberis Capital.
Although the company has not disclosed its valuation post this latest Series B funding round, the NATO Innovation Fund’s Patrick Schneider-Sikorsky expressed the fund’s interest in technologies that can make a significant impact in both civilian and defense markets.
Chris Evdaimon, Investment Manager at Baillie Gifford, stated that they were drawn to Tekever’s software-centric and vertically integrated model in drone building.
Tekever’s drones have been employed in Ukraine, the European Maritime Safety Agency, and the UK’s Home Office. The UK’s National Security Strategic Investment Fund and Crescent Cove Advisors, based in Silicon Valley, also participated in the round, along with existing investors Iberis Semper and Cedrus Capital.
