Estonian defence technology startup Frankenburg has secured $35 Million in a Series A funding round to scale its production of affordable, mass-manufacturable missile defence systems. The investment, led by Plural and joined by SmartCap, brings the company's total funding to $47 million. This capital injection is aimed directly at addressing a critical bottleneck in European air defence by establishing sovereign missile manufacturing capacity on the continent.
Addressing a Strategic Gap in European Defence
Frankenburg was founded in response to a significant shift in Europe's security landscape, where modern aerial threats can be produced cheaply and at scale. Traditional missile manufacturing has historically prioritized high performance over cost-effectiveness and rapid regeneration, creating a strategic vulnerability. This disparity leaves nations ill-equipped to counter the sheer volume of contemporary threats like autonomous attack drones.
The company's core mission is to restore speed, scale, and sustainability to missile defence, tackling what it calls Europe's deterrence problem. According to company officials, effective deterrence is impossible with systems that are too scarce, slow to replace, or expensive to use at scale. Frankenburg aims to build missile systems that Europe can actually afford to deploy and produce in large quantities.
A New Model for Defence Manufacturing
The Tallinn-based firm is pioneering a new approach by applying contemporary engineering and modern production techniques to defence manufacturing. Its systems are designed to be modular, scalable, and easily integrated into existing defence frameworks for rapid industrialization. A prime example is the Mark I short-range interceptor, which reached the industrialization stage in just over a year, a stark contrast to typical procurement cycles.
Frankenburg's strategy involves establishing multiple full-rate missile production facilities throughout Europe, each capable of producing a high volume of interceptors daily. To mitigate supply chain disruptions, these sites will feature significant vertical integration, including dedicated production capabilities for rocket motors and warheads. This model also aims to create skilled employment and shorten supply chains by enabling production closer to the point of use.
Scaling Production with New Investment
The new $35 Million in funding will be instrumental in realizing these ambitious production goals. A key priority is to establish two mass production sites within the European Union, each with a target output of more than 100 missiles per day. The investment will also be used to secure the supply of key components and expand the company's engineering and export control teams.
The funding round was led by Plural, an Estonian venture capital fund co-founded by prominent tech figures like Wise's Taavet Hinrikus, with participation from the state-backed investor SmartCap. Plural investor Sten Tamkivi emphasized the strategic imperative, stating that defence must be cheap, fast, and available in the millions to effectively counter modern threats. This investment signals growing confidence in privately funded defence innovation.
Enhancing European Sovereignty
Frankenburg's initiative aligns with a broader European focus on enhancing technological independence and security. As geopolitical tensions persist, both the EU and NATO are actively working to reduce their reliance on external suppliers for critical defence hardware. The company's model of blending private capital with defence innovation represents a significant shift toward leveraging commercial agility to bolster Europe's sovereign industrial capabilities.
This successful funding round marks a pivotal moment for Frankenburg and a significant step toward revolutionizing Europe's missile defence posture. By championing affordability, mass production, and sovereign manufacturing, the company is poised to address a critical security vulnerability. Its efforts are set to enhance the continent's strategic autonomy and industrial resilience in an increasingly complex global environment.