Ready to explore the possibilities in Estonia’s DefenceTech sector? Reach out to Invest Estonia for personalised e-Consulting and discover how you can be part of this transformative journey.
Estonia is once again proving its agility, transforming the recent surge of defence commitments into investment opportunities and entrepreneurial success. As reported by Bloomberg, famous Estonian drone manufacturer Threod Systems is now exploring a potential sale as demand for unmanned aircraft systems continues to grow, according to people familiar with the matter.
The company is working with advisers to gauge interest from potential buyers, including defence companies and private equity firms. Large European defence manufacturers are among those examining the business, though discussions remain private.
Threod posted €38M in sales for 2024, an 87% growth from the previous year. The company’s customer base includes Ukraine and seven NATO countries, including the UK, Poland, and Lithuania.
CEO Arno Vaik stated in a November 2024 interview that the company aims to reach €100M in revenue within a few years. The company currently employs approximately 160 people, mainly in Viimsi, North Estonia.
Threod manufactures fixed-wing and vertical takeoff and landing drones, along with related systems including launchers and optics. The company has developed proprietary electro-optical payloads that include laser designators, products also known as gimbals that can be mounted on various drone types and are essential for threat identification and targeting.
Ukraine regularly uses Threod’s surveillance drones on the battlefield, providing real-world validation of the company’s technology in active combat conditions. Estonia remains among Ukraine’s strongest allies, providing over €500M worth of defence assistance among many other measures.
The country has also boosted its local defence industry and innovation sector, now scoring wins in aerial tech development, uncrewed vehicles and more. It has a dedicated Defence Fund, invests in Defence-focused venture firms, and is planning to build industrial parks supporting the fast-growing demand.
Meanwhile, investor interest in European defence startups has increased significantly. NATO members agreed in June to increase defence spending to 5% of gross domestic product.
