Stealthy Paris-based defence tech Harmattan AI is seeking to raise $200m in early-stage funding, according to Bloomberg, as the sector continues to heat up in Europe.
The startup, which launched in April 2024, builds AI-powered drones for military use. It has already raised more than $30m in a previous undisclosed round, two sources familiar with the deal confirmed to Sifted.
US VC FirstMark led the previous round, according to the sources. Bloomberg reports German investor Atlantic Labs also participated in early funding.
Harmattan did not reply to a request for comment.
Defence tech is becoming one of the hottest sectors in Europe in 2025 as countries in the region face continued war between Russia and Ukraine, as well as geopolitical tensions with the US. Sifted data shows in the first half of 2025 VCs poured €946.3m into defence startups, a 26% increase from the same period in 2024.
German startup Helsing, which makes AI battlefield software, autonomous strike drones and underwater surveillance systems, raised €600m in June at a €12bn valuation, making it one of Europe’s most valuable startups.
What does Harmattan do?
In an early pitch deck seen by Sifted, Harmattan describes itself as a “European Anduril”. Anduril is a US-based defence tech building both software and hardware for military use cases, which was last valued at $30.5bn.
According to its website, the French startup is currently developing three types of drone: a training-focused system, a surveillance drone and a drone designed to intercept weapons.
The company says it focuses on making its products low-cost and high-volume. According to Bloomberg, it is planning to build a facility in France next year to produce 10k drones a month, with additional facilities opening in Germany and the US in 2026.
In July, Harmattan announced it had signed a “multi-million-US-dollar” deal with a NATO government to deliver AI-powered small drones in mid-October.
At the same time, the French defence ministry said it had ordered 1,000 drones from Harmattan, to be delivered by the end of 2025. It is unclear whether this refers to the same contract.
A source familiar with the company told Sifted Harmattan’s strategy is to secure programmes of record (POR), which are government-funded acquisition programmes, instead of starting with proofs of concept (POCs).
“PORs pay off a lot more in the long-term,” they said. “What’s incredible is the speed with which they have acquired these PORs.”
Harmattan’s pitch deck states the company plans to secure a first $1bn contract by 2030.
