Stark Defence reportedly raised €500 million in new funding, valuing the German drone startup at about €3.5 billion, according to Bloomberg. The round was backed by Sequoia Capital and Founders Fund, the venture capital firm co-founded by Peter Thiel. Other investors reportedly included NATO Innovation Fund, Project A, Döpfner Capital, Air Street Capital, and 201 Ventures.
Stark Defence is a Berlin-based defense technology company developing unmanned systems and strike drones. The company was founded in 2024 and has quickly become one of Europe’s most closely watched defense technology startups.
The latest funding round reflects rising investor demand for European defense technology companies as governments increase military spending and seek to strengthen domestic defense capabilities. Stark’s rapid growth also comes as European countries look to expand production of drones and other battlefield technologies following the war in Ukraine.
The company develops loitering munitions, often described as kamikaze drones, along with related autonomous and unmanned defense systems. Stark has also been linked to defense contracts with the German military and is positioning itself as a major supplier in Europe’s fast-growing defense tech ecosystem.
The new capital is expected to support manufacturing expansion and product development as Stark works to scale production. Reports indicated that a major portion of the funding will be directed toward expanding manufacturing capacity.
Stark’s valuation has increased sharply over a short period. The company was reportedly valued at about $500 million in 2025 after a Sequoia-led financing round and later reached unicorn status before this latest round pushed its valuation into multi-billion-euro territory.
The financing also highlights the increasing role of U.S. venture capital firms in European defense technology. Investors such as Sequoia and Founders Fund have been backing companies that build autonomous systems, drones, AI-enabled defense products, and other technologies considered strategically important for NATO and European security.
For Stark, the funding provides a larger capital base to compete in a defense market where speed, manufacturing capacity, and operational reliability are becoming increasingly important. The company’s growth reflects a broader shift in which defense startups are attracting large private-market rounds as governments look for faster-moving suppliers alongside traditional defense contractors.
