AI drone maker Tekever raises $580M at $6.4 billion valuation

Tekever, the Portuguese-British company that built its reputation supplying AI-powered surveillance drones to Ukraine, has closed the first tranche of a $580 million Series D round that values the company at $6.4 billion — making it one of the most valuable defense-tech startups in Europe.

The round was led by UC Investments, the investment arm of the University of California system marking its first direct investment outside the US, and Baillie Gifford, the Edinburgh-based fund known for long-horizon technology bets. Existing investors Crescent Cove, Ventura Capital, and Iberis Capital also participated. Additional closings are expected over the coming months.

Tekever's AR5 surveillance drone has accumulated more than 50,000 flight hours in Ukrainian operations since 2022, where it has provided real-time intelligence, surveillance, and reconnaissance in active combat zones. That track record was a significant factor in securing the UK Ministry of Defence's CORVUS contract — the British Army's new dedicated surveillance capability, worth up to £400 million over ten years.

The company plans to use the new capital to broaden its global footprint, expand manufacturing capacity in Portugal and the UK, and pursue acquisitions. CEO Ricardo Mendes said Tekever is targeting defense customers across NATO member states, pointing to a gap between the proven operational value of AI-enabled drones and the capacity of traditional defense contractors to deliver them at scale.

The raise lands at a moment when defense AI spending is rising sharply across Europe. Several NATO members have accelerated drone procurement since Russia's 2022 invasion demonstrated the decisive battlefield role of persistent AI-assisted surveillance. Tekever's advantage is a combination of combat-proven hardware, proprietary AI-assisted target detection software, and a European manufacturing base that reduces supply-chain risk for buyers wary of sourcing sensitive systems solely from US vendors.

At $6.4 billion, Tekever's valuation positions it ahead of many traditional European defense primes on a per-revenue multiple basis. The company, founded in Portugal in 2001 and now headquartered in the UK and Portugal, is actively exploring acquisitions to accelerate its expansion into new NATO markets, Reuters reported.