Estonian defense company Frankenburg Technologies has secured €4 million investment to develop anti-aircraft missiles. In just a few months, the company nearly tripled its valuation, Arileht reports.
About Frankenburg Technologies
-
Founded in 2024, Frankenburg Technologies is a European defence technology company specializing in rocket science, producing missiles used for air defense.
-
The Mark 1 version of the company's innovative and economical Mini Missile is expected to be tested in Ukraine in 2025.
-
This scalable solution is designed to counter drone threats, particularly those from Iranian-made Shahed-131 and Shahed-136 drones, which have been widely deployed by Russian forces.
“Frankenburg’s goal is to develop technology that will help Europe win the war. We are developing anti-aircraft missiles that are at least ten times cheaper than those available on the market. The additional investment will help attract additional missile industry talent from Europe,” said Kusti Salm, CEO of Frankenburg Technologies.
Deal details
Blossom Capital II LP, a London-based venture capital fund specializing in early-stage investments, invested €2 million in Frankenburg Technologies. The fund’s portfolio includes technology-focused financial companies such as Checkout.com and MoonPay.
Shellona Ltd., an existing investor, provided additional €2 million, increasing its total investment in the startup to €3.5 million.
Frankenburg Technologies' market value has nearly tripled in just a few months, jumping to €150 million based on the latest transaction. This follows a previous financing round in November, which valued the company at €55 million in 2024.
UPD 28.03.25:
Frankenburg Technologies has also announced plans to establish a production facility in Latvia. The Estonian firm has already formalized a research and development agreement with the Latvian Ministry of Defense, paving the way for collaboration with the National Armed Forces, according to the Latvian Investment and Development Agency (LIAA).
“The choice of Latvia is not accidental – here there are strong traditions of rocket development and talented engineers. Cooperation with Riga Technical University has already proven its effectiveness. Latvia has everything necessary for further product development and production,” Frankenburg Technologies, CEO Veiko-Vello Palms stated.
The company also plans to collaborate with NATO member states and join the international drone coalition, further strengthening its position in the European defense industry.
Apart from new operations in Latvia, Frankenburg has also announced open positions for experts in Lithuania to develop technology to win the war.
