German drone start-up Stark has secured €500 million in a new funding round led by Founders Fund, a venture capital firm co-founded by US billionaire Peter Thiel. The announcement, made this week, underlines continued financial support from Founders Fund despite political concerns raised over Thiel’s involvement with the company. California-based Sequoia Capital also participated as a significant investor in the round.
The latest fundraising is expected to value Stark at approximately €2.5 billion, according to sources familiar with the deal. Both Founders Fund and Sequoia had previously invested in Stark, which this year won a contract to supply "kamikaze" attack drones to the German armed forces. Stark produces armed drones designed to destroy targets upon impact and has expanded its manufacturing footprint with a factory opened last year in Swindon, United Kingdom.
In a letter to members of the German Bundestag seen by observers, Stark clarified that Peter Thiel personally holds "significantly less than 10 percent" of the company’s shares and that his stake had been "further significantly reduced" as a result of the recent funding round. The company emphasized that Thiel does not hold any special rights, supervisory board positions, special voting privileges, or access to security-critical technical information or intellectual property. Stark described itself as a "European company, incorporated and headquartered in Europe," with leadership, operations, and decision-making processes based entirely within Europe and governed by a fully European supervisory board.
The decision to accept new investment from a Thiel-affiliated fund follows earlier political scrutiny in Germany regarding Thiel's role. German Defence Minister Boris Pistorius expressed the need to clarify the extent of Thiel’s influence within Stark. Sebastian Schäfer, a Green Party lawmaker, voiced concern over the involvement of Founders Fund in the funding round, highlighting the difficulty European tech companies face in securing capital but suggesting alternatives exist to avoid reliance on investors connected to Thiel.
Uwe Horstmann, Stark’s founder and CEO, described the new funding as a substantial commitment to Europe’s defense industrial base, aimed at supporting engineers, factories, and technologies critical to the continent’s security needs. Founders Fund declined to comment on the latest investment.
As Stark continues to expand its role in supplying advanced drone technology to European defense forces, the company remains under close observation both for its strategic significance and the implications of its investor profile.