It says it will use the funding to build sovereign missile-manufacturing capacity in Europe
An Estonian defence startup building what it says are “affordable, mass manufacturable” missile defence systems has raised €30m in Series A funding.
Frankenburg Technologies, founded in 2024, is headed up by CEO Kusti Salm, the former permanent secretary of Estonia’s defence ministry.
The startup, which touts its sovereign credentials, says it was founded in response to a structural shift in Europe’s security environment, namely that modern aerial threats can now be produced cheaply and at scale, while missile manufacturing has historically prioritised performance over speed, cost and regeneration.
Its latest funding round comes four years after Russia’s full-scale invasion of Ukraine.
It says that it can build “affordable missile systems designed for mass production”, which addresses Europe’s air-defence bottleneck.
It says it will use the funding to build sovereign missile-manufacturing capacity in Europe, with a focus on production, resilience and regeneration.
According to the FT, one of its priorities is to set up two EU-based “mass production sites” to make more than 100 missiles per day per site.
The funding round was led by new investor Plural, the Estonian fund founded by Wise’s Taavet Hinrikus and other high-profile investors, with participation from another new investor, the Estonian investor SmartCap. The startup has now raised €40m in total.
Salm said: “Europe’s deterrence problem is not just about budgets, it’s about availability. You cannot deter with systems that are too scarce, too slow to replace, or too expensive to use at scale. Frankenburg was built to restore speed, scale and sustainability to missile defence.
“This funding allows us to put real industrial capacity behind that mission and build missile systems Europe can actually afford to fire and produce at scale.”