Dutch Startup Onodrim Raises $300 Million to Awaken Europe's Defense Industry

Onodrim, a Dutch startup founded by former Palantir employees, raised $300 million at a $1.3 billion valuation to acquire suppliers and expand Europe's defense industrial base. According to Sina Finance, the year-old company plans to buy controlling stakes in businesses with dual-use operations and technologies it considers critical to European supply chains, then help them grow with technology, capital and business-development expertise. CEO and co-founder Aistis Šimaitis said the mission is to strengthen Europe's defense industrial base and “awaken the sleeping giant” of European manufacturing. Co-founder and Chief Technology Officer Alexander Blessing said Onodrim would operate differently from a traditional private-equity firm: it aims to keep founders of small and midsize family businesses in place and help expand their businesses. He said the company is not buying assets to make a financial return and sell them five years later, but sees itself as an operator. Onodrim said it has identified several potential investments but declined to disclose their industries. Šimaitis cited drone propulsion systems, sensing and radar systems, energetic materials used in explosives, and aircraft structural components as supply-chain bottlenecks. He said the company aims to fill gaps, not compete with established or emerging defense contractors. European governments have sharply increased military spending since the Russia-Ukraine conflict began more than four years ago, driving defense companies' order backlogs to record levels. Many have struggled to expand production to meet delivery needs. Onodrim's latest funding round was led by U.S. investor Lux Capital, with existing investors including General Catalyst and Lakestar. Lux Capital partner Brandon Reeves said Europe needs a stronger industrial base to address future security challenges. Earlier this year, Onodrim raised $45 million in seed funding from General Catalyst, Lakestar and Founders Fund. The company's third co-founder, Christian Garrett of 137 Ventures, does not participate in day-to-day operations. Šimaitis said Onodrim wants to build a European company and that Founders Fund is a non-controlling minority investor.