AI drone maker Tekever raised $580 million at a $6.4 billion valuation, citing more than 50,000 operational flight hours in Ukraine and a U.K. Ministry of Defence contract worth up to £400 million.
Tekever, a Portuguese-British AI drone company, raised $580 million at a $6.4 billion valuation on Wednesday, as Europe's rearmament drive continues to funnel capital into defense-technology startups.
University of California Investments and Baillie Gifford led the round, with Merlyn Advisors, Crescent Cove, Ventura Capital, and Iberis Capital also participating.
The company develops AI-powered autonomous systems, including surveillance drones. Tekever says its systems have logged more than 50,000 operational flight hours in Ukraine since Russia's full-scale invasion began in 2022.
"Artificial intelligence, autonomy and sovereign technological capability will be fundamental to the security and resilience of democratic societies in the decades ahead," Ricardo Mendes, Tekever's founder and CEO, said in a statement. "This investment gives us the resources to move faster, scale further and continue building a global technology leader from Europe."
Tekever said it plans to use the proceeds to deepen its international presence, expand industrial and technological capabilities, and pursue strategic acquisitions.
The fundraise follows a significant government contract win. Tekever said in July that the U.K. Ministry of Defence had selected the company to supply surveillance technology under a program worth up to £400 million — roughly $530 million — over 10 years.
Ben Wallace, a portfolio manager at Merlyn Advisors and a former U.K. defense secretary, pointed to Tekever's operational record as a differentiator. "Europe's security will increasingly depend on its ability to build technology companies that can innovate at speed, scale industrially and deliver capabilities that respond to real operational needs," Wallace said in a statement. "Tekever has a proven track record that shows it can do all three."
The round reflects a broader surge in capital flowing into European defense-tech companies. German autonomous drone makers Helsing and Quantum Systems raised $1.8 billion and 1 billion euros, respectively, in July. British air and missile defense company Cambridge Aerospace closed a $300 million round in August, and German AI-enabled unmanned systems startup Stark raised 500 million euros in June.
Together, these deals underscore how the prolonged conflict in Ukraine — and mounting pressure on European governments to reduce dependence on U.S. defense industry — has reshaped investor appetite for sovereign military technology on the continent.
With a government contract already secured and fresh capital in hand, Tekever's trajectory will hinge on whether it can scale production and secure additional allied-nation partnerships as European defense budgets continue to climb.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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