Auterion, a fast-growing defense tech startup specializing in drone software, has raised $130 million in its latest funding round — a bold move aimed at accelerating international expansion in strategic regions such as Ukraine and Taiwan. The company is drawing attention as it positions itself to become the “Microsoft for drones” — providing universal software infrastructure across drone ecosystems globally.

A Strategic Pivot Toward Defense

Founded in 2017 in Zurich, Auterion originally focused on delivery drone software. However, the 2022 invasion of Ukraine marked a turning point for the company. Auterion pivoted to defense, developing a military-grade operating system for uncrewed aerial vehicles (UAVs). Its tech now powers enhanced navigation, targeting systems, autopilot functions, and even swarming capabilities — where fleets of drones operate in coordinated formations.

The company’s software has quickly become a platform of choice for militaries seeking to unify disparate drone systems under a single operating layer — akin to how Microsoft Windows standardized desktop computing.

Backed by Top-Tier Investors

The new round was led by Bessemer Venture Partners, joined by existing investors Lakestar and Mosaic. While CEO Lorenz Meier didn’t disclose the full financial terms, he confirmed the company’s valuation now exceeds $600 million. This brings Auterion’s total funding to $195 million, still modest compared to hardware-focused competitors like Anduril and Helsing.

Yet Auterion’s software-only model offers key advantages — interoperability, scalability, and cost efficiency — that are increasingly vital in modern warfare.

Global Expansion: Taiwan, Ukraine, Europe

The capital injection will fuel team growth, new offices, and strategic acquisitions of companies building applications that integrate into Auterion’s drone OS.

Auterion has already landed a $50 million deal with the U.S. Department of Defense, collaborating with a Ukrainian drone manufacturer on long-range autonomous weapons. In Taiwan, the company signed a multi-year contract in June 2025 to provide military drone software — a move highlighting the growing importance of autonomous tech in Asia’s contested airspace.

Auterion’s tech is currently deployed in Ukraine, serving as a common operating platform across hundreds of diverse drone brands, enabling them to operate as a unified swarm.

Additionally, Meier teased upcoming contracts with two major European governments, following an earlier partnership with German defense giant Rheinmetall AG.

From Startup to Strategic Asset

Auterion is now generating close to $100 million in annual revenue, with positive cash flow — a rare feat in the defense tech space. Its rise coincides with a global boom in defense tech investment, with VCs pouring a record $28.4 billion into the sector in the first half of 2025 alone (PitchBook).

Bessemer’s Alex Ferrara, an early backer of Shopify, called Auterion his firm’s first European defense investment, citing a growing need for modular, software-based solutions amid increasingly localized drone manufacturing in Europe.

“Right now, we’re a little company that’s growing really fast,” said Meier. “It sounds crazy, but if you look back — Windows and Android won the battle.”

Why It Matters

Auterion’s success underscores a larger trend: software-defined warfare. As militaries seek cost-effective, flexible, and scalable drone deployments, open platforms like Auterion’s are becoming essential infrastructure.

With over 50 million kilometers of autonomous flight data, a 70% reduction in bill-of-materials costs on next-gen drones, and a goal to achieve unit-level profitability by early 2026, Auterion is well-positioned to become a cornerstone of the $4.45 trillion global AV (autonomous vehicle) opportunity by 2034.