In a sign of the growing strategic importance of drones, two European companies—Germany’s Quantum Systems and Portugal’s Tekever—have each surpassed the €1 billion valuation mark, entering the exclusive club of unicorns.

This milestone reflects a broader trend: the intersection oftech, defense, and autonomous systems is becoming one of the hottest sectors in Europe. Quantum Systems and Tekever are at the forefront, with deep-pocketed investors betting big on their long-term potential.

Quantum Systems, based in Munich, is known for its vertical takeoff and landing (VTOL) drones used in defense, mapping, and environmental monitoring. The company has secured several government contracts and continues to expand into international markets. Its dual-use technology, which serves both civilian and military needs, gives it a unique market edge.

Tekever, headquartered in Lisbon, has carved out a niche in maritime surveillance and border security. Its drones are already in use by the European Maritime Safety Agency and other governmental bodies. The firm’s ability to deploy persistent aerial monitoring over vast ocean areas has made it a favorite among coast guards and naval forces.

What sets these companies apart is their commitment to integrating AI and autonomous decision-making into their platforms. This allows their drones to operate in complex environments with minimal human input—acritical advantage in both military and industrial settings.

The surge in valuations is also being fueled by geopolitics.European governments are increasingly focused on self-reliance in defense technologies, and homegrown drone capabilities are now seen as essential to national security.

Venture capital is following suit. Over the last 12 months,both firms closed sizable funding rounds involving a mix of defense-focused investors and traditional tech VCs. Their growth also highlights a shifting dynamic where Europe is no longer just a buyer of drone tech but an innovator in its own right.

The implications extend far beyond Europe. As these companies scale, they are expected to compete directly with U.S. and Israeli defense tech firms, especially in NATO-aligned countries looking for interoperable solutions.

Europe’s drone future looks bright—and it’s being built not in Silicon Valley, but in cities like Munich and Lisbon.

‍