Tekever, the Portuguese-British developer of AI-powered autonomous surveillance systems, said it raised $580 million in the first close of a Series D funding round that values the company at $6.4 billion, according to the company and Reuters.
The round was led by UC Investments and Baillie Gifford, Tekever said. Merlyn Advisors joined as a new strategic investor, while existing shareholders Crescent Cove, Ventura Capital and Iberis Capital also participated.
According to Tekever, UC Investments' participation was its first direct investment in Europe. That detail appeared in The AI Insider's report on the funding.
What the company does
Tekever develops autonomous surveillance systems built around unmanned aircraft, software, sensors and AI-based intelligence, and describes itself as "shaping the future of Defence and Security through AI-driven autonomy." CNBC described the company as an AI drone maker whose systems include surveillance drones.
Founded in Portugal in 2001 and now headquartered in Britain, Tekever has sought to position itself as more than a drone manufacturer, selling an integrated surveillance system that collects, processes and turns aerial data into usable intelligence.
The company points to operational experience as central to its pitch. Tekever says its systems have logged more than 50,000 operational flight hours in Ukraine since Russia launched its full-scale invasion in 2022. It also says its AR3 platform alone has recorded more than 10,000 hours, and that frontline feedback led to more than 100 changes to that platform. Those figures are the company's own and are not independently verified in the supplied sources.
A government program in Britain
The funding announcement follows a British procurement decision. In July, the U.K. Ministry of Defence selected Tekever to provide surveillance technology under a program worth up to £400 million (around $530 million) over 10 years. The AI Insider reported that the contract covers Tekever's AR5 uncrewed aircraft under Project CORVUS, described as the British Army's new long-range intelligence, surveillance and reconnaissance capability.
What executives said
"Artificial intelligence, autonomy and sovereign technological capability will be fundamental to the security and resilience of democratic societies in the decades ahead," Ricardo Mendes, Tekever's founder and CEO, said in a statement.
"This investment gives us the resources to move faster, scale further and continue building a global technology leader from Europe," Mendes said.
Ben Wallace, a portfolio manager at Merlyn Advisors and a former U.K. defense secretary, framed the investment around Europe's industrial capacity. "Europe's security will increasingly depend on its ability to build technology companies that can innovate at speed, scale industrially and deliver capabilities that respond to real operational needs," Wallace said in a statement.
Use of funds and next closings
Tekever said it would use the funds to expand internationally, increase manufacturing and technology capabilities, pursue strategic acquisitions and accelerate development of AI-powered autonomous systems.
The company said it expects additional Series D closings over the coming months as it brings in more strategic investors, meaning the $580 million figure is a first close rather than a final total.
The round lands amid a broader surge in European defense technology funding. German autonomous drone companies Helsing and Quantum Systems raised $1.8 billion and €1 billion, respectively, in July, according to CNBC and Tech Startups. British air and missile defense company Cambridge Aerospace raised $300 million in August, and German unmanned systems startup Stark raised €500 million in June.
What is confirmed, and what is not
Confirmed: Tekever announced a $580 million first close at a $6.4 billion valuation; UC Investments and Baillie Gifford led; Merlyn Advisors joined as a new strategic investor; Crescent Cove, Ventura Capital and Iberis Capital participated; and Tekever expects further closings. The company's stated funding priorities and the U.K. contract scope were also reported.
Not yet known: the final size of the Series D once additional closings occur, who the additional strategic investors will be, and the terms or valuation basis behind the $6.4 billion figure. Some specifics — including UC Investments' characterization as a first direct European investment, and the operational-hour and platform-change figures — rest on Tekever's own statements. Further Series D closings and any contract execution milestones are the updates to watch.