Frankenburg Technologies, an Estonian defence startup focused on scalable missile defence solutions, has secured €30 million in Series A funding to expand its manufacturing capabilities and accelerate the development of cost-efficient air defence systems.
The round was led by Plural, with participation from SmartCap, bringing the company’s total funding to €40 million to date. The capital will be used to build sovereign European production capacity and support the industrial scaling of its missile systems.
What The Company Does
Founded in 2024 and led by CEO Kusti Salm, former permanent secretary of Estonia’s Ministry of Defence, Frankenburg Technologies is developing missile defence systems designed for affordability, rapid production, and operational scalability. The company’s core premise is that modern aerial threats, including drones and other airborne systems, can now be manufactured at low cost and in large volumes, creating a mismatch with traditional missile defence solutions that prioritize performance over production speed and cost efficiency.
To address this gap, Frankenburg is engineering missile systems optimized for mass manufacturability, with a focus on faster replenishment cycles, lower unit costs, and sustainable large-scale deployment. The company positions itself as a sovereign European defence technology provider aiming to strengthen regional defence autonomy and supply chain resilience.
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Market Context / Industry Background
Europe’s defence priorities have shifted significantly in recent years, particularly following the full-scale invasion of Ukraine, which exposed structural limitations in ammunition and air defence supply chains. The conflict’s prolonged nature has highlighted the importance of scalable production and rapid system replacement, rather than reliance on limited high-cost defence inventories.
Traditional missile manufacturing has historically emphasized technical performance and precision, often resulting in long production timelines and high procurement costs. However, the evolving threat environment, characterized by low-cost and mass-produced aerial systems, has increased demand for defence technologies that can be produced quickly and deployed at scale.
This shift is driving greater investment in sovereign defence manufacturing across Europe, as governments and defence stakeholders seek to reduce dependency on external supply chains and strengthen industrial capacity within the region.
Founder / Investor Commentary
CEO Kusti Salm emphasized that Europe’s deterrence capability is increasingly constrained by availability rather than budget alone. He noted that defence systems that are expensive, scarce, or slow to replace are less effective in a high-intensity security environment.
Salm stated that Frankenburg was established to restore speed, scale, and sustainability to missile defence production, arguing that affordable and rapidly manufacturable systems are essential for modern deterrence strategies. He added that the new funding will allow the company to translate its technological vision into tangible industrial capacity and deployable systems that can be produced and used at scale.
Growth Plans / Use Of Funds
The €30 million Series A investment will primarily be allocated toward establishing sovereign missile manufacturing infrastructure within Europe. A key objective is the development of two EU-based mass production facilities, each targeting an output of more than 100 missiles per day.
In addition to scaling production, the company plans to advance system development and strengthen supply chain resilience to support rapid regeneration of defence inventories. This industrial approach is intended to address bottlenecks in air defence availability and ensure faster replenishment cycles during sustained operational demand.
Through this expansion, Frankenburg Technologies aims to position itself as a long-term contributor to Europe’s defence industrial base, focusing on scalable production models aligned with evolving security requirements.
About Frankenburg Technologies
Frankenburg Technologies is an Estonian defence technology company developing scalable and cost-efficient missile defence systems. Founded in 2024. Headquartered in Estonia. The company’s mission is to strengthen European defence resilience by enabling affordable, rapidly manufacturable air defence solutions designed for large-scale deployment and replenishment.
