Estonian defence company Frankenburg Technologies, whose goal is to develop technology at least ten times cheaper than what’s available, has raised €4M to build drone- and air defence missiles amid international traction. The funding round, completed in early March 2025, has seen the company’s valuation soar to €150M, nearly triple its previous €55M valuation from just a few months ago.

Meanwhile, the Latvian Ministry of Defence announced an R&D contract with the company to develop, test, and supply a significant number of missiles to national forces. Specifically, Frankenburg will supply Latvia with “Mark I” air defence missiles. These missiles were designed specifically to destroy drones and Shahed loitering munitions and to be produced at scale.

In the coming years, the company plans to develop affordable solutions to counter the growing drone threat. This could help countries keep pace with rapidly evolving drone technology, which is increasingly deployed to inflict not only military but also economic harm.

In February, Frankenburg opened an office in Lithuania to expand its tools and production capabilities.