Onodrim Industries Raises €40 Million Seed Funding to Build Europe’s Defence Tech Base
Amsterdam-based Onodrim Industries has secured €40 million in seed funding from leading U.S. and European venture firms to accelerate the development of advanced defence manufacturing and networked systems, as Europe moves to strengthen its industrial and military capabilities.
In a quiet office in Amsterdam, a small team of engineers is attempting something ambitious: rebuilding Europe’s defence industrial base from the ground up.
This week, Onodrim Industries announced that it had raised €40 million in seed funding — an unusually large round for a European defence start-up — in a bid to accelerate what its founders describe as a technological renaissance in European security.
The investors behind the round are as striking as the amount. The financing was led by Founders Fund, with participation from Lakestar and General Catalyst, firms better known for backing consumer technology giants than heavy industry.
The size and pedigree of the round signal a broader shift underway: defence technology — once politically sensitive and largely avoided by mainstream European investors — has moved squarely into the venture capital mainstream.
A Response to War and Vulnerability
Europe’s defence awakening did not begin in boardrooms. It began on battlefields.
Russia’s invasion of Ukraine exposed severe gaps in European munitions production, industrial capacity and military readiness. Ammunition shortages, fragile supply chains and slow procurement cycles forced policymakers to confront an uncomfortable reality: Europe had underinvested in its own defence industrial infrastructure for decades.
In response, governments have pledged hundreds of billions of euros in new spending. But money alone cannot build factories, software systems or secure supply chains overnight.
Onodrim’s founders argue that Europe does not simply need more spending. It needs new industrial architecture.
From Software to Steel
The company’s leadership brings a distinctly data-driven pedigree. Chief Executive Aistis Šimaitis previously advised the government of Lithuania and worked at Palantir Technologies, the American software firm known for its defence and intelligence contracts. Co-founder and Chief Technology Officer Alexander Blessing also comes from Palantir’s engineering ranks.
Their thesis: Europe’s defence ecosystem is fragmented — technologically, politically and industrially. Systems often fail to communicate across borders. Manufacturing capacity is unevenly distributed. Data is siloed.
Onodrim aims to build integrated industrial platforms spanning advanced sensing systems, networked defence infrastructure and manufacturing capabilities designed for interoperability among European and allied forces.
Interoperability is not an abstract concept. Within NATO, 31 member states operate different systems, procurement regimes and industrial standards. The ability to coordinate efficiently — especially during crisis — depends increasingly on software-defined systems and shared digital infrastructure.
That is where Onodrim believes it can carve out space: at the intersection of hardware production and secure, networked data systems.
Venture Capital Crosses a Line
The participation of American venture capital firms underscores a deeper realignment. For years, European defence start-ups struggled to raise early-stage capital. Many institutional investors excluded weapons-related businesses from their portfolios on ethical grounds.
But as geopolitical tensions have mounted — from Eastern Europe to the Middle East and the Indo-Pacific — defence technology has been reframed by many investors as critical infrastructure rather than controversial hardware.
In that reframing lies opportunity.
Seed rounds of €40 million remain rare in Europe’s industrial sector. The capital gives Onodrim runway to recruit engineering talent, build research facilities and begin manufacturing development. It also places the company under pressure to deliver at a pace more typical of Silicon Valley than of traditional European defence primes.
The Larger Question
Whether Onodrim succeeds will depend not only on engineering execution but also on procurement reform. Europe’s defence markets remain fragmented by national regulations and slow contracting processes. A nimble start-up can design cutting-edge systems, but it still must navigate government buyers accustomed to decade-long programs.
Yet the funding itself may be the larger signal.
For decades, Europe’s defence industry was dominated by established conglomerates and state-linked champions. Now, venture-backed entrants are positioning themselves as catalysts for change — blending software agility with industrial ambition.
If Europe’s leaders are serious about building strategic autonomy, they will need more than budget increases. They will need companies capable of compressing development timelines, integrating digital systems and scaling manufacturing rapidly.
Onodrim’s €40 million bet suggests that a new generation of investors believes that moment has arrived.
