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🇮🇱 Israel /Technology

CIA-backed investor helped German drone maker break into US market

From Jerusalem Post · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Context piece
  • German drone maker Quantum Systems entered the US market with support from In-Q-Tel, a venture investor linked to US intelligence agencies.
  • Co-CEO Sven Kruck said US investors helped the company gain access in Washington and secure work with the CIA and FBI.
  • The case highlights European defense startups’ continued reliance on US capital, networks and defense markets despite efforts to build greater independence from Washington.

A German drone company’s route into the US defense market began with help from a venture firm created by US intelligence officials to invest in national-security technology.

Quantum Systems co-CEO Sven Kruck told Reuters that In-Q-Tel, along with other US investors, opened doors in Washington and helped the company win work with the CIA and FBI. The firm sells reconnaissance, attack and interceptor drones to countries including Germany and Ukraine.

It made it easier to get started in the US with clients CIA and FBI

— Sven KruckQuantum Systems’ co-CEO described how US investors helped the company win early intelligence-agency work.

“It made it easier to get started in the US with clients CIA and FBI,” Kruck said. “There were routes that opened up. That’s how we found the way to the USA. We were stronger in the US early on, where the German customer was much weaker.”

There were routes that opened up. That’s how we found the way to the USA. We were stronger in the US early on, where the German customer was much weaker

— Sven KruckHe explained the company’s early advantage in the US market compared with Germany.

Kruck said the reconnaissance contracts with US intelligence agencies generated only modest business, but helped establish Quantum’s credibility. The company is now valued at about $8 billion and ranks among Europe’s largest defense startups.

The experience also shows the limits of European independence from US technology and markets. Quantum cannot sell technology developed in the United States to other countries without US approval. Germany is seeking to reduce its dependence on Washington after President Donald Trump threatened to abandon NATO, but rebuilding its military without US capital and defense markets presents a major challenge.

Europe’s deep-tech ecosystem is a critical source of mission-relevant innovation

— Jennifer NelsonThe In-Q-Tel executive explained the firm’s interest in European technology companies.

In-Q-Tel typically makes relatively small investments, often below $3 million, but its value can lie in connecting companies with US defense buyers. The firm has backed companies including Palantir Technologies and Anduril, and holds stakes in German defense company Stark. “Europe’s deep-tech ecosystem is a critical source of mission-relevant innovation,” said Jennifer Nelson, IQT’s executive vice president for international affairs. She called Germany “a particularly important innovation partner and strategic ally” and “a cornerstone of Europe’s defense ecosystem.”

Germany is a particularly important innovation partner and strategic ally

— Jennifer NelsonNelson described Germany’s role in Europe’s defense technology ecosystem.
About this summary

Originally published by Jerusalem Post in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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