Germany’s Stark reportedly crosses €1 billion valuation after fresh funding round

Summary

German defence technology startup Stark has reportedly secured new investment that lifts its valuation above €1 billion, according to a report by Manager Magazin. The funding round is said to include backing from U.S. venture capital firm Founders Fund and European investors, as Berlin accelerates defence procurement in unmanned systems.

Berlin, Feb 13 — German defence technology startup Stark has reportedly raised fresh capital in a funding round that values the company at more than €1 billion, according to a report by Manager Magazin.

The magazine said the investment round was completed in recent weeks and included participation from U.S.-based Founders Fund, the venture capital firm founded by Peter Thiel, alongside several European investors. The report described Founders Fund’s contribution as a double-digit million-euro sum.

Stark declined to comment on the funding details.

If confirmed, the valuation would place Stark among Germany’s growing group of defence-focused “unicorns” as investor appetite for military technology startups strengthens across Europe.

Defence tech momentum builds in Europe

The reported valuation increase comes as European governments ramp up defence spending amid ongoing geopolitical tensions and efforts to strengthen domestic production capacity.

Stark develops strike drones and autonomous defence systems, operating in a segment of the defence industry that has seen rapid demand growth as militaries prioritise unmanned aerial capabilities.

Separately, documents reviewed by Manager Magazin indicate that the German government is preparing to procure strike drones valued at approximately €536 million from Stark and German defence company Helsing. The timeline and final allocation of the procurement were not specified.

Germany has expanded its defence budget since 2022, including commitments to modernise equipment and reduce reliance on non-European suppliers.

Growing investor appetite for military technology

The reported participation of Founders Fund reflects a broader shift in venture capital attitudes toward defence technology.

Historically, European defence startups often faced funding constraints due to regulatory hurdles and investor hesitation. However, rising security concerns and increased defence budgets have reshaped capital flows, particularly toward dual-use technologies that combine commercial and military applications.

Industry analysts say investor interest in unmanned systems has grown sharply as battlefield requirements evolve and procurement cycles accelerate.

If validated, Stark’s new valuation would underscore the emergence of drone manufacturing as one of Europe’s most strategically significant defence subsectors.

Why this matters

Europe’s defence sector is undergoing structural change, driven by higher public spending and a renewed focus on domestic capability.

Private capital is increasingly flowing into companies developing drones, autonomous systems and AI-enabled defence tools — areas that were once niche but are now central to military strategy.

A €1 billion valuation for a German drone manufacturer would signal that venture investors see long-term growth potential in Europe’s defence industrial base, not just short-term procurement cycles.

It also highlights the growing intersection between technology entrepreneurship and national security policy in Europe.

FAQs

Q1: What is Stark?

Stark is a German defence technology startup focused on strike drones and autonomous military systems.

Q2: How much is Stark valued at?

According to Manager Magazin, the company’s valuation has surpassed €1 billion following a recent funding round. The company has not publicly confirmed the figure.

Q3: Who invested in the funding round?

The report says Founders Fund, founded by Peter Thiel, invested a double-digit million-euro amount alongside European investors.

Q4: Is Stark receiving government contracts?

Documents cited by Manager Magazin indicate that Germany plans to procure approximately €536 million worth of strike drones from Stark and Helsing. Details of the final contracts have not been confirmed publicly.

Q5: Why is defence technology attracting more investment?

Rising geopolitical tensions and increased European defence spending have boosted demand for unmanned systems and autonomous military technologies.

Q6: Did Stark confirm the funding round?

Stark declined to comment on the reported valuation and funding details.