Berlin defence startup Stark has closed a €500m funding round backed by Sequoia Capital, Founders Fund, and the NATO Innovation Fund. The company confirmed the blockbuster raise to expand research, development and manufacturing across Europe, following earlier reports by Sifted about talks for a similar-sized deal.

More than 80% of the capital will fund R&D and manufacturing, including electronic warfare facilities and scaling production to thousands of systems monthly. Stark reached unicorn status in January after a $62m Sequoia-led round, and was founded in 2024 by Florian Seibel of Quantum Systems, who remains an investor.

The firm recently secured a €268m German military contract for kamikaze drones and expanded into the UK and Sweden. Project A cofounder Uwe Horstmann became CEO in October, and Stark acquired Berlin autonomous navigation startup Pleno while launching maritime drone systems.

This funding reflects Europe's push to build domestic defence manufacturing capabilities amid shifting security priorities. Horstmann noted the continent's challenge is no longer innovation but scaling production, making this €500m round a direct investment in Europe's defence industrial base.