All the fundraising deals in the counter-UAS market (from Q1 2025 to Q1 2026)
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Between Q1 2025 and Q1 2026, counter-UAS startups raised over $1.2 billion across 15 verified funding rounds, making counter-drone defense one of the fastest-growing segments in defense technology.
The counter-UAS market saw massive bets on radar sensing and high-power microwave systems, while a wave of European interceptor drone startups brought cheaper, battlefield-tested alternatives to expensive legacy missiles.
Two companies alone, CHAOS Industries and Epirus, accounted for more than 60% of all capital raised, showing just how concentrated counter-UAS funding remains at the top.
And if you want to better understand this new industry, you can download our pitch covering the counter-UAS market.
Insights
- CHAOS Industries alone raised $510 million in Q4 2025, making it the single largest counter-UAS funding round in the entire five-quarter period by a wide margin.
- Five of the 15 counter-UAS deals funded kinetic interceptor drone startups, making "cheap-kill" interceptors the most active category by deal count in 2025 and early 2026.
- DroneShield tapped public-market capital twice in 2025 (totaling $146 million), showing that the counter-UAS market is already mature enough for listed companies to raise at scale outside traditional venture rounds.
- Europe produced six counter-UAS deals across this period, but none exceeded $100 million, while the two largest U.S. rounds alone totaled $760 million.
- The NATO Innovation Fund co-led TYTAN Technologies' Series A in Q1 2026, signaling that institutional defense capital in Europe is now flowing directly into counter-drone interceptor startups.
- Lakestar appeared in three separate counter-UAS deals (both Cambridge Aerospace rounds and TYTAN Technologies), making the firm the most active single investor by deal count in this dataset.
- The average counter-UAS deal size across all 15 rounds was about $81 million, but the median was just $30 million, which highlights how much the top two mega-rounds skew the picture.
- In every single quarter, the top deal accounted for at least 52% of that quarter's total counter-UAS funding, and in Q4 2025 it reached 96%.
- Directed-energy laser defense entered the counter-UAS funding picture for the first time with Aurelius Systems' $10 million seed round in Q3 2025, backed by General Catalyst and Draper Associates.
- India's Armory raised $1.5 million for indigenous counter-drone systems in Q2 2025, marking one of the first dedicated counter-UAS venture rounds outside of the U.S. and Europe in this period.
In our counter-UAS market deck, we will give you useful market maps and grids
Summary table of the funding deals in the counter-UAS market (last 5 quarters)
We define the counter-UAS market as solutions purpose-built to detect, track, and identify unmanned aircraft and to defeat or neutralize them within a protected area.
We include UAS-specific sensors and data fusion, command-and-control/engagement software, and mitigation effectors (kinetic and non-kinetic), plus integration and sustainment required to operate the system.
We exclude drone/robotics manufacturing, general-purpose security or air-defense capabilities not configured for small UAS, and detection-only offerings sold without a credible path to interdiction.
You can also read our detailed analysis to understand how funding activity in the counter-UAS market has evolved over the last few years.
Also, you should know that we have a dedicated page, updated weekly, with all the latest fundraising deals in the counter-UAS market.
| Name | What they do | Amount ($M) | Quarter | Source(s) |
|---|---|---|---|---|
| Hidden Level | Builds passive radar systems that detect and track drones around protected sites | $65.0M | Q1 2025 | Hidden Level, PR Newswire |
| Epirus | Makes high-power microwave systems that disable drones and drone swarms electronically | $250.0M | Q1 2025 | Epirus |
| Alpine Eagle | Develops AI-guided interceptor drones that detect and neutralize hostile drones mid-air | $11.0M | Q1 2025 | HTGF, TechCrunch |
| Allen Control Systems | Builds autonomous robotic weapon stations designed to shoot down drones | $30.0M | Q1 2025 | Business Wire |
| DroneShield | Provides full-stack counter-drone hardware and software for detection, tracking, and jamming | $68.3M | Q2 2025 | DroneShield, Listcorp |
| Cambridge Aerospace | Develops low-cost interceptor rockets to defeat large drones and cruise missiles | $36.0M | Q2 2025 | Nordic 9, Army Recognition |
| Armory | Builds indigenous counter-drone systems to detect, deny, and destroy rogue drones in India | $1.5M | Q2 2025 | Entrepreneur India |
| Nordic Air Defence | Makes lightweight battery-powered interceptor drones for low-cost drone defeat | $3.0M | Q3 2025 | Defence Industry Europe |
| DroneShield | AI-enabled counter-drone systems for military and public-safety customers worldwide | $78.0M | Q3 2025 | DroneShield |
| Cambridge Aerospace | Builds scalable low-cost interceptors to counter drones and incoming aerial threats | $100.0M | Q3 2025 | Tectonic Defense, Nordic 9 |
| Aurelius Systems | Builds autonomous laser platforms to destroy drones at very low cost per shot | $10.0M | Q3 2025 | Axios, AI Insider |
| MatrixSpace | Makes portable AI-enhanced radar products for real-time counter-drone detection | $20.0M | Q4 2025 | MatrixSpace, Tech Startups |
| CHAOS Industries | Builds advanced radar and sensing systems for detecting drones and airborne threats | $510.0M | Q4 2025 | Business Wire, Yahoo Finance |
| Shotling | Builds a short-range rotary-gun system to stop FPV drones and loitering munitions | $0.8M | Q1 2026 | EU-Startups, Yahoo Finance |
| TYTAN Technologies | Builds autonomous interceptor systems designed for counter-drone warfare and air defense | $35.3M | Q1 2026 | TYTAN Technologies, Defence Industry Europe |
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How has funding activity in the counter-UAS market changed over time?
Q4 2025 was the most active quarter by dollar volume in the counter-UAS market, with $530 million raised across just two deals, almost entirely driven by CHAOS Industries' massive $510 million Series D.
Q1 2026 was the quietest quarter so far, with only $36.1 million raised across two deals, as the counter-UAS market saw no mega-round to match the scale of previous quarters.
Total counter-UAS funding in Q1 2026 ($36.1 million) dropped 93% compared to Q4 2025 ($530 million), and it also fell 90% compared to Q1 2025 ($356.1 million, one year earlier).
If you strip out the top one or two deals each quarter, the remaining counter-UAS funding activity was remarkably steady: smaller rounds in the $1 million to $35 million range showed up consistently every quarter, suggesting that early-stage counter-drone startups kept attracting capital regardless of whether a mega-deal landed that quarter.
| Quarter | Number of deals | Total raised ($M) | Comment |
|---|---|---|---|
| Q1 2025 | 4 | $356.1M | Epirus' $250M Series D dominated, but three other counter-UAS startups also closed rounds in the same quarter. |
| Q2 2025 | 3 | $105.8M | DroneShield's $68.3M placement led the quarter, joined by Cambridge Aerospace's seed and Armory's small round in India. |
| Q3 2025 | 4 | $191.0M | Cambridge Aerospace's $100M Series A headlined, while DroneShield raised again and two new entrants joined the counter-UAS market. |
| Q4 2025 | 2 | $530.0M | CHAOS Industries' $510M round made this the biggest quarter by far, with MatrixSpace adding a $20M Series B. |
| Q1 2026 | 2 | $36.1M | TYTAN Technologies raised $35.3M after battlefield validation in Ukraine, and Shotling closed a small pre-seed in Denmark. |
| All quarters | 15 | $1,219.0M | Over $1.2 billion raised by counter-UAS pure players across five quarters, spanning 15 verified deals. |
In our counter-UAS market deck, we identify repeatable patterns you can use if you’re building in this market
Which startups in the counter-UAS market raised the largest rounds over the last months?
These startups raised the most recently in the counter-UAS market:
- CHAOS Industries raised $510 million in a Series D to scale its counter-drone radar production as government spending on airspace defense surged worldwide.
- Epirus raised $250 million in a Series D to hyperscale production of Leonidas, its high-power microwave system built to disable drone swarms without firing a missile.
- Cambridge Aerospace raised $100 million in a Series A to push its low-cost Skyhammer interceptor toward scaled production for European air defense.
- DroneShield raised $78 million in an August 2025 placement to fund capacity expansion and faster product rollout across global counter-drone markets.
- DroneShield raised $68.3 million in an earlier April 2025 placement to support growth and potential acquisitions in the fast-expanding counter-UAS sector.
- Hidden Level raised $65 million in a Series C to expand passive radar drone-detection deployments for U.S. national security and critical infrastructure.
- Cambridge Aerospace raised $36 million in a seed round to move from concept to manufacturing-ready interceptor programs in the UK.
- TYTAN Technologies raised $35.3 million in a Series A, co-led by Armira and the NATO Innovation Fund, after battlefield validation of its interceptors in Ukraine.
- Allen Control Systems raised $30 million in a Series A to accelerate deployment of Bullfrog, its autonomous weapon station designed to shoot down drones.
- MatrixSpace raised $20 million in a Series B, adding L3Harris as an investor, to expand production of its portable AI-powered counter-drone radar.
And, yes, we do cover most of them in our our beautiful pitch about the counter-UAS market.
You may also want to check our ranking of the most funded startups in the counter-UAS market as well as our list of the most valued startups.
In our counter-UAS market deck, we answer all the common questions from investors and entrepreneurs
Is the counter-UAS market shifting toward smaller or bigger deals?
Across all 15 counter-UAS deals from Q1 2025 to Q1 2026, the average deal size was about $81 million, but that number is heavily pulled up by two mega-rounds from CHAOS Industries and Epirus.
Quarter by quarter, the average counter-UAS deal size swung wildly: $89 million in Q1 2025, $35.3 million in Q2 2025, $47.8 million in Q3 2025, $265 million in Q4 2025, and $18 million in Q1 2026. These swings happened because a single large round can completely change the quarterly average when deal counts are small.
If you exclude CHAOS Industries ($510 million) and Epirus ($250 million), the average counter-UAS deal size drops to about $35 million, and the trend looks much more stable across quarters, with steady activity in the $1 million to $100 million range.
| Quarter | Number of deals | Average deal size ($M) | Deals below $2M | Deals above $50M |
|---|---|---|---|---|
| Q1 2025 | 4 | $89.0M | 0 | 2 |
| Q2 2025 | 3 | $35.3M | 1 | 1 |
| Q3 2025 | 4 | $47.8M | 0 | 2 |
| Q4 2025 | 2 | $265.0M | 0 | 1 |
| Q1 2026 | 2 | $18.0M | 1 | 0 |
| All quarters | 15 | $81.3M | 2 | 6 |
In our counter-UAS market deck, we help you understand how the market is structured
How concentrated was funding activity in the counter-UAS market?
Counter-UAS funding was extremely top-heavy throughout this period: in every single quarter, the largest deal accounted for at least 52% of total capital raised, and in Q4 2025, CHAOS Industries alone represented 96% of all counter-UAS funding. This level of concentration is typical for an emerging defense-tech category where a few companies secure outsized government and investor backing.
Even when the counter-UAS market had four deals in a quarter (Q1 2025 and Q3 2025), the top three rounds still captured over 96% of the money, leaving very little for the remaining startups. That pattern suggests that investors are making big conviction bets on a small number of counter-drone leaders rather than spreading capital evenly across the field.
| Quarter | Number of deals | % by Top 1 | % by Top 3 | % by Top 10 |
|---|---|---|---|---|
| Q1 2025 | 4 | 70.2% | 96.9% | 100.0% |
| Q2 2025 | 3 | 64.6% | 100.0% | 100.0% |
| Q3 2025 | 4 | 52.4% | 98.4% | 100.0% |
| Q4 2025 | 2 | 96.2% | 100.0% | 100.0% |
| Q1 2026 | 2 | 97.9% | 100.0% | 100.0% |
| All quarters | 15 | 41.8% | 70.4% | 100.0% |
In our counter-UAS market deck, we have designed useful charts to give you full market clarity
Which categories in the counter-UAS market received the most funding?
Detection and radar was the top-funded counter-UAS category with $530 million raised, and that entire amount came from a single deal: CHAOS Industries' massive Series D. CHAOS Industries benefited from a surge in government spending on drone-detection radar, which made counter-drone sensing the most capital-intensive category in the market.
Non-kinetic mitigation (high-power microwave) ranked second with $250 million, all from Epirus' Series D. Epirus positioned its Leonidas system as a way to defeat entire drone swarms without firing expensive missiles, which attracted heavy investor interest in Q1 2025.
Integrated detect-and-defeat systems came third with $146.3 million across DroneShield's two 2025 placements. DroneShield's ability to raise twice through public-market capital showed that full-stack counter-UAS companies with proven revenue can access a wider pool of investors than pure-play startups at earlier stages.
| Category name | Number of deals | Total raised ($M) | Startups and amount |
|---|---|---|---|
| Detection / radar | 1 | $530.0M | CHAOS Industries ($510.0M) |
| Non-kinetic mitigation / HPM | 1 | $250.0M | Epirus ($250.0M) |
| Integrated detect-and-defeat systems | 2 | $146.3M | DroneShield ($68.3M Q2 2025 + $78.0M Q3 2025) |
In our counter-UAS market deck, we cover the latest tech updates shaping the market
Who are the biggest investors in the counter-UAS market?
Lakestar is the most active investor in the counter-UAS market with three deals, participating in both Cambridge Aerospace rounds and the TYTAN Technologies Series A. Lakestar's repeated bets on European interceptor startups suggest the firm has a strong thesis on cheap-kill counter-drone economics.
Accel also appeared in three counter-UAS deals, backing Cambridge Aerospace twice and joining the CHAOS Industries mega-round. Accel's involvement in both early-stage European interceptors and a $510 million U.S. radar deal shows the firm is comfortable across the full spectrum of counter-drone defense.
General Catalyst participated in two counter-UAS rounds, backing Alpine Eagle's interceptor drones in Europe and co-leading Aurelius Systems' laser defense seed round in the U.S. General Catalyst's portfolio now spans two very different approaches to the drone-kill problem.
8VC was involved in two of the biggest counter-UAS rounds of the period, co-leading Epirus' $250 million Series D and participating in CHAOS Industries' $510 million Series D. Combined, the deals 8VC backed totaled $760 million in counter-drone funding.
OTB Ventures appeared in two counter-UAS deals, co-leading MatrixSpace's Series B and joining the TYTAN Technologies Series A. OTB Ventures is building a defense-tech portfolio that covers both radar sensing and kinetic interceptors.
D3 participated in two counter-UAS rounds, the Cambridge Aerospace Series A and the TYTAN Technologies Series A, both focused on European interceptor systems. D3's focus on this specific counter-drone subcategory is clear.
Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented. "Total funded" does not represent the amount personally invested by an individual investor. Instead, it refers to the aggregate amount raised across all fundraising rounds in which the investor participated.
| Investor | Number of deals | Total funded ($M) | Startups |
|---|---|---|---|
| Lakestar | 3 | $171.3M | Cambridge Aerospace (Seed + Series A), TYTAN Technologies |
| Accel | 3 | $646.0M | Cambridge Aerospace (Seed + Series A), CHAOS Industries |
| General Catalyst | 2 | $21.0M | Alpine Eagle, Aurelius Systems |
| 8VC | 2 | $760.0M | Epirus, CHAOS Industries |
| OTB Ventures | 2 | $55.3M | MatrixSpace, TYTAN Technologies |
| D3 | 2 | $135.3M | Cambridge Aerospace (Series A), TYTAN Technologies |
In our counter-UAS market deck, we track adoption trends and shifts in consumer behavior
Related blog posts
- All funding deals in the counter-UAS market
- Which startups have raised the most funding in the counter-UAS market?
