Finnish defence technology company Arctic RAVN has secured €2.5 million in convertible loan commitments to expand production of drone electronics, exceeding its €2 million fundraising target. The funding will support manufacturing expansion and product development as the company responds to growing demand for European-made components for unmanned systems.
Arctic RAVN, which develops and manufactures electronic components for drones, has already invested more than €1 million in expanding production of its electronic speed controllers (ESCs). These components regulate the speed of drone motors. The company expects to manufacture tens of thousands of units by the end of 2026, with a significant portion of that output already reserved by customers.
The next phase of expansion will focus on flight controllers, which manage drone stability and flight operations. Arctic RAVN ultimately aims to reach an annual manufacturing capacity of two million circuit boards.
The company said its customer base includes several established European defence manufacturers, although it did not identify them. All Arctic RAVN products are designed and manufactured in Finland, using components sourced exclusively from Europe and NATO-allied countries. This sourcing strategy reflects broader efforts to reduce European dependence on electronics supplied by countries outside the alliance, particularly as demand for unmanned systems increases.
“Investors committed to the round within days, even though we have not yet officially launched a single product,” said Matti Vansén, CEO of Arctic RAVN. “Follow-up orders and discussions with several leading defence manufacturers indicate a need for high-performance European drone electronics. We are now scaling our manufacturing capabilities for industrial-level output and strengthening Europe’s ability to produce critical drone electronics.”
The investment comes as European defence manufacturers seek to expand domestic or “sovereign” production of unmanned systems and their underlying components. While much of the attention has focused on complete drone platforms, electronic speed controllers and flight controllers remain critical parts of the supply chain. The company is seeking to address that demand through Finnish manufacturing and allied-country sourcing.
