European investors are putting hundreds of millions of euros into two surveillance drone companies, Quantum Systems and Tekever, in deals that value each of the defence technology start-ups at more than €1bn. New investors are flocking to the market for defence or “dual use” technology, which can be used in both civilian applications and on the battlefield. The latest rounds come as the makers of drones deployed in Ukraine’s war with Russia scale up production as Europe races to boost its defence capabilities, following the Trump administration’s threats to withdraw US military support in the region. Munich-based Quantum Systems has raised €160mn led by Balderton Capital, in the London-based venture firm’s first defence tech investment, alongside strategic backers Hensoldt and Airbus Defence and Space. The deal, which also includes existing investors including US venture capitalist and Palantir co-founder Peter Thiel, values Quantum at more than €1bn, according to people familiar with the terms. “The goal is to make the battlefield transparent and have real-time aerial intelligence from every part of the front line,” said Florian Seibel, co-chief executive and co-founder of Quantum Systems. “You can only shoot if you know where to shoot. So you need eyes in the sky.”

Full report : Munich-based Quantum Systems raised €160 million, sources say at a €1 billion+ valuation, and Lisbon-based Tekever hit a £1 billion+ valuation, as VCs back European drone startups.