Dual-use drone startup Tekever raised 70 million euros ($74 million) to develop its product and expand into new markets, particularly in the United States. The news is part of a trend where small, tech-focused startups are launching into markets normally dominated by large “defense bounties.”

It also shows that unmanned aerial drones are becoming more sophisticated, in part because of the pace of development generated by the war in Ukraine. Just last month, another European drone start-up, Originhas raised funds for its precision strike drone system currently operational in this country.

Tekever’s funding round was led by Scottish investment firm Baillie Gifford & Co. (which previously backed SpaceX) and the NATO Innovation Fund, the defense and dual venture capital fund use of a billion euros. announced in 2023. The fund is connected to NATO and focuses on supporting startups developing technologies in areas such as defense, security and resilience.

Created in Portugal but also operational in the United Kingdom and France, Tekever’s surveillance drones have been used, in civilian environments, to track down migrant smugglers in the Channel. Its largest drone, the ARX, can command a number of smaller drones to survey the land or seascape…or the battlefield.

Unlike most traditional aerospace companies, Tekever controls every aspect of its operations, from airframe design and manufacturing to payloads, avionics, software, data and AI. The company says this means it can quickly adapt its products based on customer needs, as well as the rapidly changing modern theater of war.

Managing Director Ricardo Mendes said According to Bloomberg News, Europe needed to intervene more: “We have the war in Ukraine on our borders and (Europe is) lagging behind in terms of technological growth. »

Tekever started before raising a Series A of 20 million euros in 2022 of Ventura Capital and Iberis Capital.

He does not disclose his valuation with this latest round, which is a Series B.

NATO Innovation Fund partner Patrick Schneider-Sikorsky told TechCrunch: “The drone market has grown exponentially in Europe since 2022. At the NATO Innovation Fund, we are deeply interested in technologies that can impact the civil and defense markets and we are proud to support Tekever due to the company’s extensive applications in defense, as well as ISR for businesses and governments across Europe.

In a statement, Chris Evdaimon, investment director, private companies at Baillie Gifford, added: “We were attracted to Tekever’s approach to building drones – with a software-centric, vertically integrated model. »

Tekever drones have been deployed in Ukraine, with the European Maritime Safety Agency and the UK Home Office.

The UK’s National Security Strategic Investment Fund and Crescent Cove Advisors (based in Silicon Valley) also participated in the round, as did existing investors Iberis Semper and Cedrus Capital.

Additional reporting by Anna Heim