Tekever, an AI drone maker based in Portugal and the UK, announced on Wednesday that it has reached a $6.4 billion valuation following a $580 million funding round, as European nations accelerate defense technology investments in response to the ongoing Ukraine war and increased threats from Russia [1]. The funding round was led by University of California Investments and Baillie Gifford, with participation from Merlyn Advisors, Crescent Cove, Ventura Capital, and Iberis Capital [1].
Tekever develops AI-powered autonomous systems, including surveillance drones, which have accumulated over 50,000 operational flight hours in Ukraine since Russia's full-scale invasion began in 2022 [1]. In July, Tekever announced that the UK Ministry of Defence had selected it to provide surveillance technology under a program valued at up to £400 million (approximately $530 million) over 10 years [1].
CEO Ricardo Mendes stated that the investment will enable Tekever to accelerate its growth, scale operations, and pursue strategic acquisitions, emphasizing the importance of artificial intelligence, autonomy, and sovereign technological capability for the security and resilience of democratic societies [1]. Ben Wallace, portfolio manager at Merlyn Advisors and former UK defense secretary, highlighted Tekever's proven track record in innovating, scaling, and delivering operational capabilities [1].
Tekever plans to use the new funds to expand its international presence, enhance its industrial and technological capabilities, and pursue further strategic acquisitions [1]. The company is part of a broader trend of European defense tech startups raising significant capital, with German drone companies Helsing and Quantum Systems raising $1.8 billion and 1 billion euros, respectively, in July, British firm Cambridge Aerospace raising $300 million in August, and German startup Stark raising 500 million euros in June [1].
CONCLUSION
Tekever's $580 million raise and $6.4 billion valuation underscore the rapid growth and investor confidence in European defense technology, driven by heightened security concerns amid the Ukraine war. The company's expansion plans and major contracts position it as a key player in the sector, reflecting a broader surge in defense tech funding across Europe.