Auterion, the European drone software start-up, has raised €130 million (US$152 million) in one of the largest defence tech rounds in Europe this year, underscoring investor appetite for companies reshaping modern warfare. The round, led by Bessemer Venture Partners with participation from Lakestar and Mosaic Venture Lab, values the company at more than US$600 million.
Founded in Zurich in 2017, Auterion began with delivery and mapping drones but pivoted to defence after Russia’s full-scale invasion of Ukraine exposed gaps in NATO capabilities. The company now provides an open operating system for drones, enabling navigation, targeting, and “swarming” — where multiple drones operate together. CEO Lorenz Meier likens Auterion’s model to Microsoft Windows, focusing on software rather than hardware to integrate across manufacturers.
“We see ourselves as a war tech company,” Meier said at the Resilience Conference. “What we in the West have to make sure is that we are achieving supremacy in autonomy first. And that means on the battlefield in Ukraine today, in Taiwan tomorrow, and in the commercial industry, the day after tomorrow.”
The funding follows earlier rounds including a $60 million Series B, bringing total raised to US$195 million. Auterion is now close to US$100 million in revenue and has turned cash flow positive, according to Meier. The fresh capital will be used to expand offices, hire staff, and acquire companies building applications on its system.
Auterion has signed major contracts in recent months, including a US$50 million deal with the U.S. Department of Defense to prototype low-cost, long-range weapons alongside a Ukrainian drone maker. In Taiwan, the company agreed to a multi-year deal to supply software to the military. It is also in advanced talks with two European governments for additional contracts.
At the Taipei Aerospace and Defense Technology Exhibition earlier this month, Auterion demonstrated its Nemyx Swarm Command and Control system, designed to coordinate hundreds of drone brands into a unified operating platform. Meier said the same software is already being used on the battlefield in Ukraine.
The company also revealed a competitor to Russia’s Shahed drones: a long-range strike platform capable of carrying a 240kg warhead over 1,500 km. The system, already tested with U.S. partners, highlights Auterion’s shift into deep-strike capabilities while maintaining its open-source roots.
Despite the wartime demand for drones, Ukrainian start-ups remain underfunded. Meier warned that many local firms rely on state contracts and lack the structures needed to secure foreign capital. “Any interruption in Ukrainian state funding would collapse most companies overnight,” he said, urging founders to incorporate abroad to open export markets.
Investors say the sector remains undercapitalised but that things are looking up. “Drones have really shifted the economics dramatically,” said Alex Ferrara, partner at Bessemer. “For the first time in a long time, smaller companies were having success getting contracts at the regular stage, early stage.”
