German drone startup Helsing GmbH may see its valuation jump to about $18 billion in a new financing round, up from about $14 billion implied in a fundraising last year, the Financial Times reported on Saturday.

Plans for a $1.2 billion funding round are at an advanced stage, although timing has yet to be decided, the newspaper cited unidentified people familiar with the deal as saying. US venture capital firm Dragoneer Investment Group is leading the raising alongside existing backer Lightspeed Venture Partners, the FT said.

Helsing, backed by Spotify Technology SA founder Daniel Ek’s investment firm Prima Materia, has attracted investment from firms including General Catalyst, Lightspeed and Accel as defense technology companies benefit from a surge in military spending in Europe. Its valuation had doubled to €12 billion ($14 billion) in a funding round announced in June, Bloomberg reported at the time.

Written by: Angela Cullen @Bloomberg

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