Lux Capital, a backer of Anduril Industries Inc. and Hadrian Automation Inc., is in talks to become one of the lead investors in a roughly €200 million ($227 million) funding round for Dutch defense startup Onodrim, according to people familiar with the matter. The financing would give Onodrim, whose co-founders include Palantir Technologies Inc. alumni, a pre-money valuation of around €1 billion. A number of other investment firms have been vying for a significant chunk of the fundraising, and Onodrim hasn’t yet picked the lead investors.

The funding comes after the Amsterdam-based company raised €40 million in seed money in February, led by Founders Fund, Lakestar and General Catalyst. Onodrim is seeking to scale up the supplier ecosystem for dual use companies. Deliberations are ongoing and details of the potential fundraising could change.

Onodrim’s co-founder and Chief Executive Officer Aistis Simaitis was one of Palantir’s first hires in Europe in 2013. Co-founder and Chief Technology Officer Alexander Blessing was an engineer at Palantir. Christian Garrett of 137 Ventures is Onodrim’s third co-founder.

The startup is benefiting from the surge in defense spending in Europe after Russia’s full-scale invasion of Ukraine in 2022. Two German drone makers, Helsing and Quantum Systems, boosted their valuations in July fundraising rounds. Other European defense companies, including Portugal’s Tekever and London-based Uforce, are also raising money.