Quantum Systems raises €1B Series D at €7B valuation as Blackstone doubles down on European defence tech

What's the deal? German drone startup Quantum Systems has raised $1.2 billion (€1 billion), more than doubling its valuation to about $8 billion (€7 billion) post-money.

The Series D was co-led by Blackstone, NoteusDealroom has a profile for this one. Try Dealroom →, Airbus, and AdventDealroom has a profile for this one. Try Dealroom →. A small portion was secondary.

Quantum Systems will use the money to expand commercial operations internationally, boost production, and pursue acquisitions.

Why now? Europe is pouring money into defence, and investors want in.

The Bavaria-based company has supplied surveillance drones to Ukraine since Russia's invasion. It is now moving into unmanned land and sea vehicles.

Its revenue doubled to about €300 million in 2025, with similar growth expected this year. The startup raised at a €3 billion valuation in November 2025.

What could go wrong? "We do see that the market is quite heated," chief financial officer Jonas Jarosch said, predicting consolidation among European defence startups, with some acquired or failing.

One early backer is controversial billionaire Peter ThielDealroom has a profile for this one. Try Dealroom →, a Palantir founder and prominent Donald TrumpDealroom has a profile for this one. Try Dealroom → supporter. Germany's defence ministry briefed lawmakers this year on Thiel's role as a minority shareholder in rival Stark Defence.

Jarosch played it down: "Peter Thiel is one of, I don't know, 35 investors in our company."

The signal: Quantum Systems is one of several German drone makers — alongside Helsing and Stark Defence — riding a surge in European military spending.

The company plans to expand into Romania, the UK, the Middle East, and Asia Pacific. It has done an IPO readiness assessment but is in no rush to list.

Read more: The Edge Malaysia, Tech Funding News, EU-Startups