Onodrim raises $300m as European defence rollups heat up

Amsterdam-based defense technology startup Onodrim has successfully raised $300 million in Series A funding, as part of a growing trend of European defense rollups. The funding round will enable Onodrim to acquire a portfolio of existing defense, space, and industrial manufacturing startups. Anne Sraders, a senior reporter at Sifted based in Berlin, covers the venture capital industry and deeptech startups, including coverage of the VC newsletter Up Round.

European startups are increasingly adopting rollup strategies in the defense sector, as VCs explore opportunities in this growing market. However, some VCs remain skeptical about the potential of defense rollups. Commonly used in private equity, rollups involve acquiring multiple smaller companies and streamlining their operations for greater efficiency.

Recent high-profile examples include missile startup Hypersonica, which secured €100 million in funding from Lightspeed and General Catalyst. Following this Series B raise, Hypersonica's valuation has soared to approximately €700 million. The VC funding landscape in the defense sector remains somewhat murky, as some founders have been accused of misrepresenting or withholding information about defense revenue.