FRANKFURT: German defence technology company Quantum Systems has secured €1 billion (around $1.2 billion) in fresh investment, more than doubling its valuation to €8 billion, underscoring growing investor confidence in Europe’s rapidly expanding defence sector.
The Munich-based firm announced on Thursday that the funding round attracted major investors, including Blackstone, Airbus, Noteus and Advent, reflecting increasing demand for advanced defence technologies as European nations strengthen their military capabilities.
Quantum Systems specialises in AI-powered surveillance drones and autonomous defence systems. The company said the latest investment will enable it to significantly increase manufacturing capacity, expand its international footprint and accelerate the development of next-generation autonomous technologies.
“This financing allows us to scale production, expand globally and deliver the next generation of AI-powered autonomous systems,” co-Chief Executive Officer Sven Kruck said.
The company also plans to invest further in software platforms designed to integrate and manage its expanding portfolio of autonomous aerial, land and maritime systems.
According to AFP, founded in 2015, Quantum Systems has become one of Europe’s leading drone manufacturers, supplying reconnaissance drones to the Ukrainian armed forces, the German military and several other European defence organisations. The company reported annual revenues of approximately €300 million last year.
Beyond surveillance drones, Quantum Systems is broadening its product range to include autonomous ground and naval platforms, reflecting the changing nature of modern warfare and growing demand for integrated unmanned systems.
Co-founder and co-Chief Executive Officer Florian Seibel said the successful fundraising could pave the way for the company to acquire Stark Defence, an attack drone manufacturer that he also helped establish.
Stark Defence, founded in 2024, announced last week that it had raised €500 million in a separate funding round, highlighting the strong flow of capital into Europe’s defence technology industry.
The investment comes as European governments accelerate defence spending in response to Russia’s ongoing war against Ukraine and increasing uncertainty over future US security commitments to Europe under President Donald Trump.
The surge in funding for companies such as Quantum Systems reflects a broader shift in investor priorities, with defence and security technologies emerging as one of Europe’s fastest-growing sectors.
