Drone specialist Tekever has seen its valuation soar almost fivefold to $6.4bn after closing a $580mn funding round co‑led by the University of California’s endowment, UC Investments, which manages $150bn, and long‑term backer Baillie Gifford. The deal marks UC Investments’ first direct European investment. New investors include Merlyn Advisors, a London‑based fund whose portfolio managers include former UK defence secretary Ben Wallace.

The capital influx pushes Tekever higher among Europe’s most valuable defence tech start‑ups, alongside Germany’s Quantum Systems and Helsing. CEO Ricardo Mendes said the company is expanding geographically and by product, with M&A a key part of its strategy. Founded in Portugal in 2001, Tekever shifted from software to surveillance and reconnaissance drones used for maritime patrols — winning contracts with the UK Home Office and the European Maritime Safety Agency — and on the battlefield in Ukraine.

The firm, which has been profitable for over six years, is building a drone factory in Swindon, near London, and was recently selected to supply AR5 “spy drones” to the British Army under a deal worth up to £400mn, replacing the ageing Watchkeeper fleet. Mendes called UC Investments’ backing a “powerful endorsement” of Tekever’s technology and long‑term vision, while UC’s chief investment officer Jagdeep Singh Bachher highlighted the firm’s technical depth and ability to execute at scale.