TEKEVER, a European developer of AI-powered autonomous systems, has announced the first close of its $580 million Series D financing at a $6.4 billion valuation. The round is led by UC Investments, the University of California’s investment arm, and Baillie Gifford, with participation from new strategic investor Merlyn Advisors and existing shareholders Crescent Cove, Ventura Capital, and Iberis Capital. The financing will support TEKEVER’s international expansion, manufacturing capabilities, technology development, and strategic acquisitions.
The transaction marks UC Investments’ first direct investment in Europe and represents another investment in TEKEVER by Baillie Gifford, which has supported the company through its recent expansion.
TEKEVER said the first close represents the majority of its planned $580 million fundraising. The company expects to complete additional Series D closings over the coming months as it brings in further strategic investors.
The financing will accelerate TEKEVER’s efforts to expand internationally while strengthening its industrial and technological infrastructure. The company also intends to pursue acquisitions as it develops its position in the global market for autonomous systems.
Founded more than two decades ago and led by Founder and CEO Ricardo Mendes, TEKEVER develops autonomous technologies that combine artificial intelligence, advanced software, aircraft, and operational intelligence.
Its vertically integrated business model enables the company to develop its own technologies and deploy them in demanding operational environments, including defense and surveillance applications.
The company has emphasized the importance of maintaining control over its technology and manufacturing capabilities as European governments increase investment in domestic defense infrastructure.
The financing announcement follows TEKEVER’s selection by the UK Ministry of Defence to deliver CORVUS, the British Army’s new surveillance capability, under a program worth up to £400 million over the next 10 years.
CORVUS is built on TEKEVER’s AR5 unmanned aerial system, combining AI-enabled autonomy, operational intelligence, and surveillance capabilities.
The program is intended to provide the British Army with a surveillance platform that can evolve as operational requirements and underlying technologies change.
The contract also supports TEKEVER’s efforts to expand its role as a long-term supplier of defense technologies that can be developed and manufactured within Europe.
For TEKEVER, the Series D financing provides additional capital to support larger industrial operations and develop technologies for customers seeking autonomous surveillance and intelligence capabilities.
The company plans to increase its manufacturing capacity, strengthen its research and development activities, and expand its international presence.
Strategic acquisitions will also be part of its growth strategy, enabling TEKEVER to expand its technological capabilities, manufacturing resources, and market opportunities.
The participation of Merlyn Advisors brings additional defense-sector experience to TEKEVER’s investor base. Its portfolio management team includes Sir Ben Wallace, the former UK Secretary of State for Defence.
Existing investors Crescent Cove, Ventura Capital, and Iberis Capital are also participating in the financing, extending their relationships with TEKEVER as the company increases its international operations.
The continued support from existing shareholders and the addition of institutional investors will provide TEKEVER with financial resources to pursue larger development programs and international expansion.
TEKEVER’s strategy centers on combining artificial intelligence, autonomous systems, proprietary software, and manufacturing capabilities within a single technology platform.
The company intends to use this approach to accelerate the development and deployment of new technologies while maintaining control over critical components of its systems.
Its international growth plans include expanding its presence across Europe, the United States, and other strategic markets.
The latest financing also reflects broader investor interest in European companies developing autonomous technologies for defense and other applications.
With additional capital, TEKEVER plans to expand its industrial footprint, pursue acquisitions, and increase investment in technologies that support its existing and future autonomous systems.
KEY QUOTES:
“This investment represents far more than a capital raise. It brings together an exceptional group of investors around a shared ambition for what TEKEVER is becoming. Having such a long term investor like UC Investments choose TEKEVER for its first direct investment in Europe is a powerful endorsement of our technology, our team and our long-term vision. We’re very happy with the continued support from Baillie Gifford, that continues to be a fantastic partner that is really helping us grow as a company. The arrival of Merlyn Advisors adds significant strategic expertise, while the continued backing of Crescent Cove, Ventura Capital and Iberis Capital demonstrates the conviction of investors who have already been part of our journey. Together, we share the belief that scientific excellence, artificial intelligence, autonomy and sovereign technological capability will be fundamental to the security and resilience of democratic societies in the decades ahead. This investment gives us the resources to move faster, scale further and continue building a global technology leader from Europe.”
Ricardo Mendes, Founder and CEO of TEKEVER
“At UC Investments, we take a long-term view and look for companies with both technical depth and the ability to execute at scale. TEKEVER has built an exceptional technology platform over more than two decades with a proven record of operational success. Our conviction rests on Ricardo and his team, and on the growing weight of European technology in global markets. We are delighted to support TEKEVER in its next phase of international growth.”
Jagdeep Singh Bachher, Chief Investment Officer of the University of California
“Our conviction in TEKEVER has continued to grow as the company has scaled. Its vertically integrated, software-centric model gives it an unusual ability to translate technology into operational capability quickly, while its experience in demanding real-world environments provides a depth of learning that is extremely difficult to replicate.”
Chris Evdaimon, Investment Manager, Private Companies at Baillie Gifford
