Quantum-Systems’ Ukraine drone, enterprise tech attracts $63M in Series B funding

Its reputation resplendent in large part due to the critical performance of its tech in service of Ukraine’s defense against invading Russian forces, German drone and robotics company Quantum-Systems has completed an eye-opening €63.6 million ($66.8 million) Series B funding round, pushing its total financing beyond the €100 million ($106 million) threshold.

Munich-based Quantum-Systems announced the close of its successful Series B round Tuesday, describing the response of investors as recognition of the company’s “dedication to boosting resilient infrastructure through aerial intelligence.” Put in a more prosaic manner, the funding influx reflects the startup’s abilities to develop and deploy highly effective drones and robotics as dual-use assets – that is, equally useful for enterprise and defense purposes.

That latter aspect has been on display over the past year in Ukraine, where the company initially supported government efforts to push back Russia’s invasion under Germany’s broader assistance response. Since then, Quantum-Systems has upped its backing of Kyiv by not only providing drones that have played vital roles in reconnaissance and intelligence gathering but also establishing pilot training, maintenance, repair, and logistical centers inside the embattled nation.

Quantum-Systems has meanwhile deepened its work with European businesses and governments, including a contract supplying the German Armed Forces with its Vector reconnaissance drones. That has dovetailed with projects strengthening European Union security contingencies, including its partnership with Airbus Defence and Space, enhancing the startup’s advanced tactical drones with artificial intelligence (AI) and swarming capabilities. 

The performance of its tech and attraction to clients and investors alike has created an upward spiral for Quantum-Systems. Drone Analyst David Benowitz recently observed the company had “just announced [it] passed 200 employees,” describing this staffing and business growth as a “significant acceleration from the Ukraine war and recent investment.”

In announcing the successful Series B funding close, Quantum-Systems CEO Florian Seibel echoed Benowitz’s prescient comment about the startup’s continued ascent and its success in becoming what a company communiqué described as “the first European company to raise over €100 million” in total investments.”

“In the face of ever-evolving global challenges, Quantum Systems recognizes the need for a bottom-up flexible approach,” Seibel said. “This approach fosters innovation and adaptability, enabling Europe to sustain its democratic values while embracing disruptive technologies that drive progress.”

Quantum-Systems said its leading financial backers now include HV Capital, DTCP, Project A, Thiel Capital, ScaleUp Fonds Bayern, Omnes Capital, and Airbus Ventures. 

It also characterized its dual-use drone and robotics development as a “synthesis of hardware, software, and AI transform[ing] business operations, enhancing efficiency across a diverse spectrum of verticals, from agriculture to mining, inspection, and construction… (and providing) expertise to democratic governments, where the need for aerial data-driven operations becomes paramount.”