With the Defence and Security Equipment International (DSEI) trade show kicking off in London, we all knew it would be a big week for European defense tech. On Monday, German drone startup Quantum Systems got the ball rolling by announcing a €50M investment in the UK over the next five years. That’s the tea.
Quantum Systems was co-founded in 2015 by Florian Seibel—who also co-founded Stark Defence (another drone company)—and is now led by Seibel and Sven Kruck. (Seibel has reportedly since stepped away from Stark’s day-to-day operations.) While Stark is deadset on defense, Quantum Systems bills itself as dual-use, focusing on ISR and reconnaissance drones.
Heat check: Like the rest of Europe’s defense tech scene, Quantum Systems has had a big year. So far, they:
- Hit unicorn status in May after a €160M Series C funding round led by Balderton Capital, with participation from new investors and old ones like HV Capital, Peter Thiel, Porsche SE, and Notion. So far, they’ve raised a total of €310M.
- Bought up Germany’s AirRobot, a Tier 1 supplier of copter drones for the Bundeswehr, in March, and Nordic Unmanned UK, the British arm of a Norwegian drone company, shortly after.
- Launched a “multi-domain command and control platform” for drones called MOSAIC UXS that consolidates data, orchestrates swarm operations, and allows for third-party UAV integration.
- Opened a 135,000-square-foot US production and integration facility in California in June.
Their revenue is reportedly expected to hit at least €300M this year, up from €110M in 2024. And according to Bloomberg, they’re in the midst of raising between €200M and €300M at a €3B ($3.5B) valuation. Cha-ching.
Crumpets and copters: Quantum Systems’ expansion in the UK includes “infrastructure, local engineering, and partnerships with UK providers.” They’ll also establish a Service, Support, Training, and Logistics Center (SSTLC) to build training and test infrastructure.
The expansion is starting small, but their new UK chief, Vito Tomasi, told CNBC that it follows their expansion blueprint in Ukraine—start with training and support, then scale to production “in line with the customers’ demands.”
According to a company statement, their UK plan supports the UK Ministry of Defence’s push for greater autonomy under its “20-40-40” force mix: 20% crewed platforms overseeing 40% reusable drones (Quantum’s ISR lane) and 40% one-way attack systems, like the ones their old pals at Stark make.
New friends: Their investment isn’t the only thing Quantum has cooking in the UK. At DSEI this week, they’ll also announce a partnership with UK-based eVTOL air mobility company Skyports and showcase Reliant, their newest fixed-wing Group 2 drone offering 10 hours of persistent ISR.
Of the defense tech startups sprouting up in Europe, Quantum Systems is among the most established. They’ve been operating in Ukraine since the start of the war and have procurement contracts with a whole bunch of European militaries.
If their next raise puts them at a $3.5B valuation and they continue their European expansion, Helsing might soon have some company in Germany and Europe’s defense tech pantheon. Zeitenwende indeed.