Estonian defence innovations are in demand: Frankenburg Technologies has raised €4M to develop 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, reports Delfi.
The investment comes from two sources: Guernsey-registered fund Blossom Capital II LP and Cayman Islands-based Shellona Ltd., each contributing €2M to the startup.
Blossom Capital, the new investor, is an early-stage venture capital fund based in London. Shellona has invested in Frankenburg earlier. Salm says it’s “a trustworthy European defence industry investor” while citing confidentiality constraints that limited additional details.
“Frankenburg’s goal is to develop technology that helps Europe win wars,” said CEO Kusti Salm, the former Secretary General of Estonia’s Ministry of Defence. “We’re developing air defence missiles that are at least ten times cheaper than what’s currently available on the market. This additional investment helps us attract more rocket industry talent from across Europe.”
Founded just last year, Frankenburg Technologies has not been wasting time. Last week, 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. Previously, the company has agreed to test them in Ukraine.
Frankenburg Technologies has distinguished itself by attracting top talent with real-life armed forces experience. In addition to Salm, the company employs former Estonian Defence Forces Commander General Martin Herem and Major General Veiko-Vello Palm, who previously served as Division Commander in the Defence Forces. The company was founded by Taavi Madiberk, known for his success at Skeleton Technologies — one of Estonia’s most promising DeepTech startups.
In February, Frankenburg opened an office in Lithuania to expand its affordable missile development and production capabilities. The Lithuanian branch is headed by Karolis Žemaitis, former Deputy Minister of Economy and Innovation.
In January, the company appointed Andreas Bappert as its Engineering Director. Bappert brings 30 years of rocket development experience from both Europe and the USA. Before joining Frankenburg, he worked as the head of medium and long-range air defence systems at DIEHL Defence, where he was involved in selling air defence solutions worth several billion euros over the past two years.
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