Tekever, a Portuguese-British maker of AI-powered surveillance drones, closed the first $580 million of a Series D funding round at a $6.4 billion valuation. The round was led by UC Investments, the University of California's investment office in its first direct European bet, and asset manager Baillie Gifford, with new investor Merlyn Advisors and returning backers Crescent Cove, Ventura Capital and Iberis Capital.
The raise follows a September 16 deal worth up to £400 million ($530 million) to supply the UK Ministry of Defence with AR5 drones, replacing the army's aging Watchkeeper fleet. Tekever's drones have logged more than 50,000 flight hours supporting Ukraine since Russia's invasion in 2022, and the company recently acquired hydraulic-transmission specialist Flowcopter and signed a partnership with Estonian drone maker Threod Systems.
CEO Ricardo Mendes called the deal a powerful endorsement, and Tekever said it will use the funds to expand internationally, scale manufacturing and pursue further acquisitions.