Berlin-based strike-drone startup Stark Defence is in talks to raise at least €300 million at a roughly €2.5 billion valuation, more than doubling its worth in months and underscoring the appetite for European defence-tech. The deal, first reported by the Financial Times, would put the 18-month-old company alongside Helsing and Quantum Systems as one of the continent's most highly valued autonomous-weapons makers.
Virtus Drone Anchors The Pitch
Stark builds autonomous loitering munitions — drones that hover over a target area, identify threats with onboard AI, and self-destruct on impact. Its flagship Virtus identifies and strikes targets autonomously, slotting into the broader shift toward low-cost autonomous weapons that can be produced and deployed at scale. The company crossed the unicorn threshold earlier in 2026 and a €2.5 billion mark just months later would make it one of the fastest-growing defence startups in European history.
Thiel Doubles Down On Europe's Drone Race
The Financial Times reports that Peter Thiel is leading Stark's new round. Thiel is also an investor in Helsing and Quantum Systems, which was co-founded by Stark CEO Florian Seibel before he and Johannes Schaback launched the new company in 2024. The competitive landscape is sharpening: Munich-based Helsing is closing a $1.2 billion round at an $18 billion valuation, while Quantum Systems is valued above €3 billion after raising €340 million in 2025.
Production Is The Real Test
European procurement is pulling capital toward strike drones. The EU's ReArm Europe plan aims to mobilise up to €800 billion over four years, and the European Defence Industry Programme — adopted in March 2026 with a €1.47 billion budget — earmarks specific funding for counter-drone and autonomous-strike capability. Stark has secured contracts and a product but has not yet proven manufacturing at the volumes military procurement requires; the €300 million would buy the production capacity before competitors lock in orders. Stark also faced technical issues during 2025 trials in Germany and the UK, but has continued to expand its contracts and product line through 2026.
The Berlin push joins a flood of European defence capital: Helsing's new CA-1EA electronic-attack drone debuted at ILA Berlin only weeks ago, while Pentagon counter-drone money is reshaping the U.S. side via deals like Anduril's $1.98B Kuwait sale.
Reporting based on coverage from TNW, the Financial Times and TechFundingNews.