NATO Innovation Fund joins €500 million STARK round to expand European drone production and R&D

The NATO Innovation Fund has taken part in a €500 million financing round for STARK, a European manufacturer of unmanned systems, in a move aimed at expanding defense production and research capacity across Europe.

According to the fund, the new capital will support additional electronic warfare research facilities, higher manufacturing output, and faster development of sovereign defense technologies. STARK builds unmanned systems for air, land, and maritime missions, and the latest round is intended to help the company scale both industrial output and R&D activity.

The NATO Innovation Fund said the investment reflects a broader requirement to move beyond defense innovation and toward industrial scale. STARK stated that more than 80% of the capital raised will be directed into research, development, and manufacturing.

Founded in 2024, STARK said it secured its first contract within nine months of launch. The company currently operates in five countries and has established more than 20,000 square meters of production capacity. It also recently signed a framework agreement tied to its loitering munition program, according to the announcement.

The investor group in the round includes the NATO Innovation Fund alongside Sequoia Capital, Founders Fund, Project A, Air Street Capital, 201 Ventures, Advent, and Döpfner Capital.

The deal adds to a growing flow of capital into Europe’s defense technology and manufacturing base, particularly in areas linked to unmanned systems, electronic warfare, and scalable production capacity. For NATO and European governments, the investment underscores the increasing focus on building domestic industrial depth and shortening the path from prototype development to fielded capability.