Bavaria-based Quantum Systems has just hit unicorn status, a milestone that marks a new era in Europe’s defence tech sector. The company secured €160 million in its latest funding round, pushing its valuation past €1 billion. This achievement makes Quantum Systems the first German unicorn of 2025 and only the second defence startup—after Helsing—to break through.
Specialising in AI-driven drones for autonomous aerial reconnaissance, Quantum Systems is pulling out all the stops. With operations stretching across Germany, Ukraine, the US, Australia, New Zealand, and Spain, the company is well-positioned to lead in a rapidly evolving field. Co-founder Florian Seibel, an ex-Bundeswehr helicopter pilot, summed it up best when he said, “You can only shoot if you know where to shoot. So you need eyes in the sky.”
Originally focused on agriculture, Quantum Systems pivoted to defence tech in response to Russia’s 2022 invasion of Ukraine. This shift has paid off, with revenues hitting €110 million in 2023 and projections to push past €200 million in 2024. The company is now gearing up to ramp up drone production, fine-tune software development, and expand its global footprint, including the recent acquisition of Airrobot, a drone manufacturer in Arnsberg.
Investor Rana Yared of Balderton sees broader opportunities on the horizon. Beyond military uses, she believes Quantum Systems’ technology could revolutionise sectors like mining and rescue operations. As she put it, it would be shortsighted to back a company that thrives in just one challenging scenario.
Not to be outdone, Portuguese drone manufacturer Tekever has also joined the unicorn club with a valuation topping £1 billion. Under the leadership of CEO Ricardo Mendes, Tekever’s funding round featured prominent backers, including Ventura Capital. Known for their AI-enabled reconnaissance and surveillance drones, which have seen tests in Ukraine and deployments by agencies such as the European Maritime Safety Agency and the British Home Office, Tekever is set to invest £400 million in its UK operations over the next five years.
Backing for these rising valuations is robust data from the NATO Innovation Fund and Dealroom, which report a 24% increase in investment, reaching $5.2 billion in 2024. If you’ve ever wrestled with uncertainty in choosing the next tech leader to watch, these developments offer a reassuring glimpse into the steady ascent of European defence startups.
