Uforce, a London-based drone startup, is in discussions to raise new financing at a valuation of about $5 billion, according to people familiar with the matter.
The company is seeking about $500 million led by Valor Equity Partners, the venture firm run by SpaceX board member and Elon Musk ally Antonio Gracias, the people said, asking not to be identified because the information is private. The round is not closed and details could change, they said.
Uforce declined to comment on the potential round. Valor Equity Partners did not respond to a request for comment.
Uforce brings together battle-tested Ukrainian producers of unmanned air, sea and land vehicles, including the makers of Magura sea drones, Nemesis bombers and counter-drone systems. It’s seeking to provide an integrated combat system that NATO can use as Europe rushes to build up drone arsenals.
Sifted reported in August that Uforce had kicked off the fundraising effort. The company last raised $50 million in March at a valuation of more than $1 billion in a round led by Shield Capital and Lakestar.
There’s been a surge in investment into European drone companies this year as the continent boosts defense funding and seeks more strategic autonomy from the US. Quantum Systems, a German firm that makes surveillance drones, raised $1.2 billion at a $8 billion valuation in July. Helsing, which produces surveillance and attack drones, announced a $1.8 billion financing round at a $18 billion valuation the same month.
Valor Equity Partners has backed several defense companies, including Anduril Industries, Hadrian, and Chaos Industries. It’s soared as a longtime investor in Musk’s companies; the firm owned about 4% of SpaceX when it went public.
Uforce is run by Chief Executive Officer Oleg Rogynskyy, a serial founder who previously built the software company People.ai. Former Ukrainian Prime Minister Oleksiy Honcharuk is chairman and a co-founder, and former UK defense secretary Ben Wallace is on the board.
Written by: Yazhou Sun and Rebecca Torrence — With assistance from Carmen Arroyo and Natasha Mascarenhas @Bloomberg
The post “Dronemaker UForce In Talks For Around $5 Billion Value with Valor Equity-Led Financing” first appeared on Bloomberg