NEWS
ICEYE, Nokia, Ukraine commit to Starlink alternative
ICEYE and Nokia are working with Ukraine to develop a sovereign satellite communications network.
After last week’s Starlink debacle, the rationale is straightforward. The ICEYE press release even cites ‘trusted European technology’ as the foundation for the network.
As a builder of sovereign SAR (synthetic aperture radar) satellites for governments, ICEYE’s involvement is logical. But Nokia is the more interesting name.
Known to most millennials as the creator of the iconic 3210 (the first phone with no antenna!), it was actually a telecoms infrastructure company before it was a mobile handset producer.
In the 1970s and early 1980s Nokia was building telephone exchanges, data modems and, crucially, radio telephone network equipment for the Nordic NMT standard, the world’s first automatic cellular network. That positions it well to build the core network and the terminals of this Starlink alternative.
But this is also a political play for Finland. As a new NATO member with 1,340km of border with Russia, it is uniquely vulnerable. Last month it asked Elon Musk for permission to use Starlink against Russia. But the events of last week have made it clear to Finland that Starlink can’t be relied upon.
So Nokia, the Finnish national champion, has created Nokia Defense and partnered with ICEYE. That could be a compelling answer to the Starlink conundrum. But with first launches planned for 2028, Elon must be relied on for some time still.
Helsing launches counter-drone interceptor
As a follow up to last week’s interceptor bonanza, this week Helsing announced Contra, an air defence system. The interceptors, AD-1 ‘Inferno’ and AD-2 ‘Ambush’, are powered by jet and rocket motors respectively. They should ship later in 2027.
It’s something of a surprise that Helsing has taken this long to enter the interceptor market. Unlike Blackstone, which is building American interceptors for America, Helsing is building European interceptors for Europeans. And aiming to price them at less than $100,000 each.
The development of jet and rocket models pits Helsing squarely against Cambridge Aerospace, which is developing its own jet and rocket variants, SkyHammer and StarHammer.
Now that American delivery of Patriot missiles to Ukraine has slowed to ~8 missiles per month, there is significant unmet demand. Unfortunately few of the European interceptor companies are able to manufacture at the scale Ukraine needs. For now at least.
I suspect that whoever can get to market first, at the right price point, will quickly become the dominant player.
Palmer Luckey plans to gene edit dogs
Palmer Luckey, the enigmatic founder of Anduril and other companies, revealed his latest defence-focused initiative, Warhound. It has already attracted $200M of investment from the likes of Sequoia, 8VC and In-Q-Tel.
Warhound aims to genetically engineer dogs for the US military, law enforcement etc. The dogs, which don’t exist yet, will apparently take on tasks that are dangerous for humans or difficult for machines, such as bomb detection and other specialised operations.
The supply chain logic is easy to miss beneath the novelty. Warhound says more than 80% of the US military’s working dogs come from Europe, and fewer than half of them prove fit for service.
This is something of a sovereignty story. The US has realised that it relies on European breeders for a capability it considers essential, and has responded by building a domestic supply. I wonder if soon we will have ITAR-free European dogs for Europe.
Intel buys the quantum compiler
Intel has agreed to acquire Classiq, the Israeli quantum software company. for ~$2.3B, making it the largest ever acquisition of a quantum company.
Classiq's platform synthesises quantum circuits from high-level models, working across qubit types the way chip design software works across foundries. Intel brings spin-qubit chips and cryogenic control electronics. Together they aim to be a full-stack quantum business.
The interesting part is that Classiq will apparently stay hardware-agnostic. But whether rivals keep trusting a competitor's compiler remains to be seen.
FUNDRAISING
DEFENCE
Arda, an American developer of AI for adaptable manufacturing processes, emerged from stealth with $232Min funding co-led by Altimeter, Accel, and Khosla Ventures.
Warhound, Palmer Luckey's project to gene-edit military working dogs, emerged from stealth with $200M at a $1.2B valuation from investors including Sequoia, 8VC, In-Q-Tel.
Reliable Robotics, an American developer of autonomous aviation, added $115M to its Series D, led by Nimble Partners.
Watchtower Labs, an American developer of AI and simulation software for logistics, raised a $35M round co-led by Shield Capital and Conviction.
Erebor, an American bank serving defence companies and co-founded by Palmer Luckey, sold $30M of preferred stock to Robinhood Ventures.
High Lander, an Israeli developer of software for managing drone fleets, autonomous missions, and low-altitude airspace raised a $30M Series A.
Beyond Vision, a Portuguese developer of UAVs, raised a €25M Series A co-led by Indico Capital Partnersand Lince Capital.
North Vector Dynamics, a Canadian developer of interceptors, raised a $20M Series A led by Tech Horizons.
Skyfly, a British developer of hybrid-electric uncrewed VTOLs, raised a $10M seed led by HICO Investment Group.
Stellios Technologies, an American developer of high-power microwave systems for counter-drone defence, raised a $5M pre-seed.
Artic RAVN, a Finnish developer of electronic speed controllers for UAVs, raised a €2.5M round.
Arke Telekom, a Turkish company developing a software-defined mesh radio for drones, raised €1M fromACT Venture Partners.
Drove Aeropower, an American developer of small jet engines, emerged from stealth with an undisclosed amount of funding.
SPACE
Xona, an American builder of commercial LEO satellites as an alternative to GPS, raised a $250M Series D at a $2.5B valuation led by Future Ventures.
Atombeam, an American developer of software for satellite, defence, and commercial links, raised an $18.3Mround.
Cosmochute, an American developer of lunar robotics infrastructure, raised a $1.5M pre-seed led by Acceland Prosus Ventures.
QUANTUM, CYBER & AI
DeepSeek, a Chinese AI lab, raised a $15B round.
Blackwall, an Estonian developer of cyber security to counter malicious web bots, raised a $100M Series C at a $2.2B valuation, led by AVP. Blackwall is an Expeditions portfolio company.
QuantrolOx, a Finnish developer of quantum hardware development and calibration technology, raised a $10M Series A led by IW Capital.
Indurex, a Dutch developer of industrial cyber AI, raised a €7M seed co-led by Axeleo Capital and Curiosity.
Coherence Quantum, a Finnish developer of cryogenic signalling and control infrastructure, raised €2.8M led by LifeLine Ventures.
RhymeQ, a Swiss developer of quantum programming software, raised a $2.2M pre-seed led by Ground State Ventures.