TEKEVER Raises $580M at $6.4B Valuation After £400M UK Drone Deal

Lisbon-based defence technology company TEKEVER has raised $580 million in the first closing of its Series D funding round, taking its valuation to $6.4 billion.

The new valuation is nearly five times the company's valuation from a year ago and comes shortly after TEKEVER secured a major UK Ministry of Defence contract valued at up to £400 million over ten years.

The Series D was led by UC Investments, the investment arm of the University of California, and Baillie Gifford. The transaction marks UC Investments' first direct investment in a European company.

Merlyn Advisors has also become a strategic investor, while existing investors Crescent Cove, Ventura Capital and Iberis Capital participated in the round.

TEKEVER expects to close additional portions of the Series D in the coming months as more investors join the financing.

Founded by Ricardo Mendes and his classmates from Lisbon's Instituto Superior Técnico, TEKEVER has evolved from a software company into a major European unmanned aircraft and defence intelligence business.

From software to autonomous defence systems

TEKEVER was founded in 2001 by Mendes and his classmates.

The company initially focused on software designed to connect devices through what it called the "evernet."

The business later shifted toward unmanned systems.

By 2009, the founders began applying their expertise in distributed systems to drone technology, eventually developing the company's own unmanned aircraft.

Today, TEKEVER designs and manufactures aircraft including the AR3, AR4, and AR5.

The company also operates a subscription-based intelligence service built around the data collected by its aircraft.

This combination of hardware and intelligence services gives TEKEVER a business model that extends beyond simply selling drones.

Its systems are used for surveillance and reconnaissance, including by the UK Home Office for English Channel patrol operations.

The company has also expanded its workforce significantly. According to Revelio Labs data cited in the source, TEKEVER now employs around 900 people, representing an increase of nearly 40% over the previous year.

The £400M UK defence contract

TEKEVER's latest financing comes only three months after the company secured a major contract with the UK Ministry of Defence.

The agreement is valued at up to £400 million over ten years and involves CORVUS, a new drone system intended to replace the British Army's ageing Watchkeeper fleet.

The system will use TEKEVER's AR5 platform.

The contract gives TEKEVER a significant position within the UK's defence technology ecosystem and provides a major commercial deployment opportunity for its unmanned aircraft technology.

For investors, the timing of the contract and the Series D financing places TEKEVER at an important point in its expansion.

The company now has both substantial new capital and a large government programme around which it can continue developing its technology and production capabilities.

UC Investments makes its European debut

One of the most notable aspects of the new financing is the participation of UC Investments.

The investment organisation, which manages capital for the University of California, is making its first direct investment in a European company through TEKEVER.

UC Investments joins Baillie Gifford as a lead investor in the round.

The financing also brings in Merlyn Advisors as a strategic backer. Its portfolio manager Ben Wallace previously served as UK defence secretary.

Crescent Cove, Ventura Capital and Iberis Capital, all existing investors, also participated.

TEKEVER's CEO Ricardo Mendes said the financing brings together investors around the company's long-term ambitions, highlighting UC Investments' first direct European investment as an important development for the business.

The company intends to raise additional capital through further closings of the Series D in the coming months.

A rapidly expanding European defence technology market

TEKEVER's fundraising is taking place during a period of substantial investment in defence technology.

According to PitchBook data cited in the source, global venture funding for defence technology reached a record $49.1 billion in 2025, compared with $27.2 billion in 2024.

European drone and defence technology companies have been significant beneficiaries of this increased investor attention.

TEKEVER is now one of several European defence technology companies to reach billion-dollar valuations.

Munich-based Helsing raised $1.8 billion in July at an $18 billion valuation, while Quantum Systems raised $1.2 billion at an $8 billion valuation during the same month.

The companies have different areas of focus.

Helsing and Quantum Systems are described in the source as focusing on strike drones and battlefield software, while TEKEVER has built its business primarily around surveillance and reconnaissance.

That distinction has also been highlighted by investors.

Baillie Gifford's Chris Evdaimon previously described TEKEVER's specialisation as a strength, pointing to the company's growth and profitability.

The wider global drone race

TEKEVER's new valuation also puts it within a much broader international defence technology market.

In the United States, Anduril has emerged as one of the largest private defence technology companies.

The company raised $5 billion in May and reached a reported valuation of $61 billion, according to the source.

The difference in scale illustrates how rapidly private capital has moved into autonomous defence systems, drones, battlefield software, and intelligence technology.

For European companies, the growth of firms such as TEKEVER, Helsing, and Quantum Systems reflects the emergence of a larger regional defence technology ecosystem.

Governments are increasingly looking toward unmanned systems and autonomous technologies for surveillance, reconnaissance, and other defence applications.

At the same time, major contracts can significantly accelerate the commercial development of companies operating in the sector.

TEKEVER's next stage

The latest $580 million financing gives TEKEVER substantial resources as it expands its aircraft portfolio, intelligence services, and international operations.

The company will also need to scale its workforce and production capabilities to support the UK CORVUS programme and other potential customers.

Its workforce has already grown to around 900 people, and the company is expected to continue expanding as demand for its technology develops.

The additional Series D closings could further increase the capital available to TEKEVER.

The company is now operating at the intersection of several major trends: increased defence spending, growing demand for autonomous systems, European investment in domestic defence technology, and the expanding use of drones for surveillance and reconnaissance.

The £400 million UK contract provides a major programme for the company to execute, while the $6.4 billion valuation reflects the scale investors now place on its technology and growth prospects.

TEKEVER's next phase will therefore involve turning that investment and government demand into expanded production, deployments, and recurring intelligence revenue while continuing to develop its next generation of unmanned systems.