Quantum Systems: Leading the charge in the autonomous drone revolution - increases Series B Financing Volume to over €100M, led by Notion Capital

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Words by Patrick Norris and Maximilian Eichler

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An era of drone adoption at scale

Recent improvements in foundational technology have radically lowered the cost of sophisticated autonomous robotic systems - causing an adoption inflection point across commercial and governmental use cases. Sensors have gotten cheaper, battery storage technology more lightweight, and edge computing more efficient.

The business case for autonomous robotics systems in the broader market has now become compelling at scale. This trend is driving the adoption of cost-effective, autonomous, unmanned aerial intelligence systems for commercial use-cases, such as monitoring of linear infrastructure, high-resolution geospatial data, precision farming, mining and many more - even big tech wants to build out aerial intelligence capabilities.

At the same time, defence- and intelligence-related government needs and purchasing is experiencing a seismic shift. Historically, governments and militaries purchased predominantly complex, expensive, manned systems in low volume for defense and intelligence purposes on a cost+ contract basis. Governments are now increasingly looking to purchase cost-effective, autonomous, inter-operable, unmanned systems in high volume. This is accelerated by current geopolitical conflicts, such as the war in Ukraine, but is underpinned by a sustained trend, rapidly driving drone adoption.

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Quantum Systems’ unique product portfolio

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With their family of systems, Quantum Systems is perfectly positioned to fulfil this demand at scale and has emerged as the de-facto leader in unmanned aerial systems to dominate the market in Europe and beyond.Quantum’s family of systems includes the Trinity drone for the commercial sector, as well as short-, mid-, and long-range drones for the governmental sector - Twister, Vector, and Reliant. All operated from the same mission planning and control software, ensuring seamless operations across diverse missions with interoperability between the different systems. Furthermore, an operator trained on Vector can easily fly Twister or Reliant. Lastly, Quantum Systems is building further infrastructure around their existing product stack, such as their autonomous drone port or acoustic sensors.

Quantum Systems' unique advantage lies in its state-of-the-art drones seamlessly integrating advanced AI capabilities. By combining cutting-edge hardware, intelligent software, and powerful AI, Quantum Systems optimizes business operations, driving efficiency across a wide range of industries, including mining, construction, agriculture, utilities, public safety, and defense. Their drones offer a significant edge by capturing, analysing, and processing aerial sensor data, empowering organisations with actionable insights that transform decision-making and operational performance.

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Why we invested

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As part of our process, we were looking for three proof-points beyond conventional product-market fit, that ultimately drove our investment decision: 

1. Ability to navigate government purchasing processes: Governments are notorious for their slow and bureaucratic procurement processes - many startups, especially in the defense domain, fail to navigate them at the required pace and unlock the required contract size to justify the (opportunity) cost of selling to governments and close these contracts in time to demonstrate the required proof-points to unlock further financing. QS has shown unparalleled expertise in this domain, as they have closed large contracts with Germany, the US, Ukraine, Australia, Romania, and several other countries, emerging as the de facto standard for mid-range reconnaissance and proving demand at scale beyond the current geopolitical conflicts.
2. Ability to scale manufacturing: A challenge that any hardware startup faces, but underestimated by many. You have the demand to 10x your order book, but now you actually have to deliver. Scaling supplier relationships, manufacturing processes, assembly, and logistics comes with a plethora of challenges and Quantum has put the perfect talent and processes in place to keep up with their ever-growing demand.
3. Presence in Ukraine: By now it is undeniable that operating under the harsh conditions in Ukraine provides a significant competitive advantage to almost any drone company. Ukraine has the fastest iteration and innovation pace in drone technology in the world right now - what Silicon Valley is for foundational AI research, Ukraine is for drone technology. QS drones operate on the battlefield in Ukraine every day. This educates Quantum’s product strategy decisions and operational improvements - Vector is one of the most-used reconnaissance drones in Ukraine today.

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The likes of Anduril, AeroVironment, or Shield AI have found strong footing in the US defense industry - it’s time for a home-grown success in Europe, and we believe Quantum Systems will take that role. Anduril’s recent $1.5bn raise for its new manufacturing facility - Arsenal - valuing the company at $14bn, is a significant proof-point for the continued buyer demand and investor appetite in this market.

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Led by (industry) veterans

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Quantum is led by a team of industry and military veterans who intimately know the needs of defence buyers and how to navigate government procurement processes. Florian Seibel, the CEO of QS, is a highly driven founder, motivated to defend European values. In such an uncertain world, we all need more homegrown success stories like Quantum Systems to make a difference and have an impact beyond economic profit.

We believe Quantum Systems has the potential to disrupt the aerial intelligence industry and play a crucial role in a safer and more productive future. With their innovative products, visionary leadership, and immense global market potential, we think they are poised to become one of Europe’s iconic companies. We’re excited to support the team on their journey as they expand their global footprint and develop their family of systems further.

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Why Notion? A note from the Quantum Systems founder

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"The security of Europe cannot be achieved without the UK, which is why we are proud to reflect this consideration with our partnership with Notion, a London-based fund. Their strategic investment not only aligns with our vision for Quantum Systems but also reinforces the collaborative efforts needed to enhance security and innovation across the continent." Florian Seibel, CEO, Quantum Systems.