German drone maker Stark closed a €500 million funding round on Tuesday, with Peter Thiel’s Founders Fund leading the raise alongside Sequoia Capital. The capital infusion pushes Stark’s valuation toward €2.5 billion, strengthening its position after securing a €300 million contract to supply “kamikaze” attack drones to the German armed forces. Stark thus deepens its ties to U.S. venture capital despite political scrutiny.

Critics have long questioned Thiel’s influence, given his libertarian ties and past support for Donald Trump. Stark reassured the Bundestag that Thiel now holds less than 10 percent of shares and no board or voting rights, a stake further diluted by the new round. Founders Fund and Sequoia each contributed sizable commitments, underscoring confidence for investors in Europe’s defence tech pipeline and regulatory compliance checks.

CEO Uwe Horstmann framed the financing as a €500 million pledge to Europe’s defence industrial base, aimed at expanding engineering capacity and production lines, including a Swindon factory opened last year. With defence budgets rising across the continent, Stark’s cash boost positions it to scale deliveries to Germany and potentially export to other NATO allies, cementing its market foothold.