Frankenburg Technologies Secures €30M to Bolster European Missile Production

Tallinn-based defense technology company Frankenburg Technologies has raised €30 million in Series A funding to expand its missile manufacturing capacity across Europe. The funding round was led by venture capital firm Plural, with participation from Estonian state investment fund SmartCap [1].

Addressing Europe’s Air Defense Needs

Founded in 2024 by Taavi Madiberk and Marko Virkebau, Frankenburg Technologies was created in response to a growing need for affordable and rapidly produced missile systems in Europe [2]. The company aims to counter the increasing prevalence of low-cost aerial threats, such as drones, which can be produced quickly and in large numbers, while traditional interceptor missiles are often expensive and slow to manufacture [3].

A New Approach to Missile Manufacturing

Frankenburg, led by CEO Kusti Salm, a former Permanent Secretary of Estonia’s Ministry of Defence, is focused on developing precision-guided missile systems and establishing mass production capabilities within Europe [2]. The company’s team includes experienced missile engineers and defense professionals with backgrounds in programs like IRIS-T, SPEAR3, Storm Shadow, and Brimstone [2].

Investment Breakdown and Future Plans

The €30 million investment will be used to:

• Establish two missile production plants in the European Union, each with a designed capacity of at least 100 missiles per day [2].
• Secure long-lead components and build up initial inventory.
• Develop missile engine and warhead production capacity within the EU.
• Expand engineering, safety, quality, and export control teams.

With this funding, Frankenburg’s total financing reaches €40 million [3]. The company plans to expand its product portfolio beyond the Mark I short-range anti-aircraft missile to include air and ground-launched systems, utilizing a scalable and cost-effective manufacturing model [2].

Geographic Expansion and Local Production

Frankenburg operates across eight European countries – Estonia, Latvia, Lithuania, Germany, the United Kingdom, Denmark, Poland, and Ukraine [2]. The company emphasizes local production to shorten supply chains, create high-value jobs, and strengthen national economies and strategic independence. Frankenburg Technologies Latvija, led by CEO Kaspars Pollaks, is establishing a key engineering and production center in Latvia [2].

Industry Response

Taavi Madiberk, Founder and Chairman of Frankenburg Technologies, stated the company aims to bring a “SpaceX-style” shift to the European missile industry, focusing on speed, cost, and performance [4]. Sten Tamkivi, Partner at Plural, highlighted Frankenburg’s ability to build reliable military capabilities quickly without relying on lengthy development cycles [3].