Stark closes €500M as Sequoia and Thiel price a European drone maker at €3.5B
A two-year-old Berlin loitering-munition maker is now one of Europe's best-funded defense startups, with US capital and the NATO Innovation Fund underwriting factories over software.
A two-year-old Berlin loitering-munition maker is now one of Europe's best-funded defense startups, with US capital and the NATO Innovation Fund underwriting factories over software.
Stark Defence has closed a €500 million round led by Sequoia Capital and Peter Thiel's Founders Fund, Bloomberg reported on Monday. The deal values the Berlin loitering-munition maker above €3.5 billion, roughly triple the €1 billion it passed earlier this year. In May the round was reported at €300 million and about €2.5 billion, so the close runs well past that earlier mark.
The NATO Innovation Fund joined the round too, alongside Project A, Air Street Capital, 201 Ventures, and Döpfner Capital. Total funding now sits above €660 million, up from roughly €160 million before this round, per Bloomberg. Over 80 percent of the new money goes to manufacturing and research, the company said, including electronic-warfare facilities.
Stark builds loitering munitions, drones that hold over a target area and self-detonate on impact. Its Virtus has flown in Ukraine and assembles in ten minutes, The Next Web wrote. The company runs sites in Germany, Ukraine, Sweden, and Greece, and opened a production plant in Swindon, England, last year.
"The challenge facing Europe is no longer whether we can innovate, it's whether we can scale," chief executive Uwe Horstmann said in a statement, calling the round a commitment to Europe's defense industrial base. Horstmann, named CEO in October, is a Project A partner and a reserve officer in the German army.
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Subscribe Free →American venture money and a NATO-backed fund have now priced a European drone maker at €3.5 billion while its Virtus already flies over the front in Ukraine. Rival Helsing is reportedly days from a raise of its own, the next benchmark European defense tech will be measured against.
Frequently Asked Questions
How much did Stark raise, and at what valuation?
Stark Defence closed a €500 million round that values it above €3.5 billion, Bloomberg reported. That is roughly triple the €1 billion valuation it crossed earlier this year.
Who led the round?
Sequoia Capital and Peter Thiel's Founders Fund led, per Bloomberg. Other backers include the NATO Innovation Fund, Project A, Air Street Capital, 201 Ventures, and Döpfner Capital.
What does Stark build?
Loitering munitions, drones that hover over a target area, identify a threat, and self-detonate. Its flagship Virtus has been used in Ukraine and assembles in ten minutes, The Next Web reported.
What will the money be used for?
More than 80 percent of the new capital goes to manufacturing and research, including electronic-warfare facilities, the company said. CEO Uwe Horstmann framed it as a bet on Europe's ability to scale production, not just innovate.
How does this compare with earlier reporting?
It overshoots it. In May the round was reported to be €300 million at about €2.5 billion; the closed deal is €500 million above €3.5 billion. Reported valuations differ slightly, with the Financial Times citing €3.2 billion and Tech.eu €3.5 billion.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.