Quantum Systems, a drone company based in Bavaria, is now officially a unicorn—a milestone that reflects a broader surge of investment in Europe’s defense tech sector.
The German startup has raised €160 million in a new funding round, pushing its valuation above €1 billion and making it the first German company in 2025 to reach unicorn status. Quantum Systems is only the second German defense startup to cross this threshold, following Helsing.
Quantum Systems builds AI-powered drones for autonomous aerial reconnaissance. Its drones are deployed in Germany, Ukraine, the US, and other countries including Australia, New Zealand, and, since May, Spain.
Co-founder and co-CEO Florian Seibel, a former Bundeswehr helicopter pilot, described the company’s mission: "You can only shoot if you know where to shoot. So you need eyes in the sky," he told the Financial Times.
The Ukraine war triggers a strategic shift
Quantum Systems originally targeted the agriculture sector but struggled to commercialize there. The company pivoted to defense technology after Russia’s invasion of Ukraine in 2022—a move that quickly paid off. Revenue reached €110 million in 2023, and the company expects to top €200 million in 2024. Quantum Systems now produces up to 4,000 drones per year in different configurations and employs about 550 people, with locations in the US, Australia, Ukraine, and Romania.
The new capital will be used to scale up series production, advance software development, and speed up international growth. The acquisition of copter drone manufacturer Airrobot, based in Arnsberg, is also part of the company’s expansion strategy, with plans to keep production running there.
Rana Yared, General Partner at Balderton, highlighted the business model’s potential beyond the military, pointing to applications in industry, mining, and rescue operations. "It would be cavalier to invest in a company that only does well in this negative geopolitical [situation]," Yared said.
Tekever in Portugal also reaches unicorn status
Quantum Systems isn’t alone. Portuguese drone maker Tekever has also secured new funding, bringing its valuation above £1 billion, according to CEO Ricardo Mendes. The latest round was led by existing investors like Ventura Capital.
Tekever produces AI-enabled drones for reconnaissance and surveillance. Its AR3 and AR5 models have been tested in Ukraine. Other clients include the European Maritime Safety Agency and the British Home Office. The company plans to invest £400 million in its UK operations over the next five years.
The unicorn valuations of Quantum Systems and Tekever reflect a larger shift: according to the NATO Innovation Fund and Dealroom, investment in European defense startups grew 24 percent to $5.2 billion in 2024.
