Finland-based DefenceTech startup Arctic RAVN has secured €2.5 million in convertible loan commitments, exceeding its original target of €2 million. The company is based in Espoo.

The funding round was launched in October 2026 and attracted investor commitments within just five days. The strong response reflects growing demand for European-made drone components as Western militaries look to reduce their reliance on supplies from China.

“Investors committed to the round within days, even though we have not yet officially launched a single product. Follow-up orders and discussions with several leading defence manufacturers indicate a need for high-performance European drone electronics. We are now scaling our manufacturing capabilities for industrial-level output and strengthening Europe’s ability to produce critical drone electronics.” — Matti Vansén, CEO.

Arctic RAVN was founded in 2025 as a studio company within Finnish Defence House, a venture studio that helps create and fund defence technology startups. The company focuses on developing drone electronics designed for use in challenging battlefield conditions.

Its product range includes electronic speed controllers (ESCs), flight controllers (FCs), motors and a modular frame system. These components help drones operate and control their movements.

Arctic RAVN designs and assembles all its products in Finland, using components sourced entirely from Europe and NATO-allied countries. The company aims to reduce Western defence forces’ reliance on drone components manufactured in China.

The new funding will help Arctic RAVN increase production and develop its products. The startup has already received repeat orders and is in talks with several leading European defence manufacturers.

The company aims to build the capacity to produce up to two million circuit boards each year. If achieved, this target would make Arctic RAVN one of Europe’s major producers of drone electronics.