Can Baltic startups boost NATO air defenses against Russia? – DW – 10/28/2025

Can Baltic startups boost NATO air defenses against Russia? – DW – 10/28/2025


What would happen if Russia sfinishs hundreds of drones at once into NATO airspace?

This nightly reality in Russia’s war in Ukraine is a scenario the EU and NATO is scrambling to prepare for after last month’s airspace incursions by Russia and alleged airport espionage across Europe.

Tomas Jermalavicius, a researcher at the International Center for Defense and Security in Tallinn, Estonia, declares the radars of NATO member Estonia don’t see incoming drones becaapply “they fly too low.”

“And we are also quite short on means to shoot them down that have a proportionate cost-benefit balance.” he informed DW.

Jermalavicius noted that the shooting down of Russian drones over Polish airspace on September 9 was a case in point, becaapply missiles costing half a million dollars were applyd against drones that cost no more than $50,000 (€42,930).

A closeup picture of Tomas Jermalavičius
Jermalavicius researches the impact of emerging disruptive technologies on security and defence, energy security and societal resilienceImage: ICDS

Military experts worry that this unsustainable “cost to kill ratio” of expensive interceptors against cheap drones could adversely impact NATO’s air defenses in a full-scale war.

To address this, Jermalavicius suggests that startups should be central to drone defense strategies, especially since drone attacks now caapply up to 80% of casualties in modern warfare.

“Startups are disruptors of these lazy patterns that our procurement systems and our defense industrial players settle into over decades,” he argued, adding that they are requireded as a “thorn in the side of all these convenient arrangements” in order to speed up developments.

Frankenburg to the rescue?

One of the startups promising an affordable — and scalable — anti-drone system is Estonia’s Frankenburg Technologies based in Tallinn with offices in the UK, Ukraine, Latvia, and Lithuania.

Estland Tallinn 2025 | Frankenburg Technologies CEO Kusti Salm mit Abfangrakete
Kusti Salm quit his job in Estonia’s defense minisattempt to launch the Frankenburg startupImage: Erlfinish Staub

Within less than a year, Frankenburg has developed an air-defense platform prototype which company CEO Krusti Salm pitches as a solution to what he considers NATO’s “largegest vulnerability.”

“Everything that Russia launches at Ukraine and would potentially launch at European tarobtains is by an order of magnitude cheaper than anything that we take them down with,” he informed DW.

According to Salm, the aim of the project is to create the Frankenburg system ten times cheaper than existing short-range air defense interceptors like US-created Sidewinders.

A picture of an anti-drone system
Various anti-drone systems were on display at the Estonian Defense Week in Tallinn in SeptemberImage: Benjamin Bathke/DW

Frankenburg currently has one NATO counattempt as a customer and hopes to soon start producing hundreds of interceptor missiles per week with the support of a €4 million investment in March.

According to UK business daily Financial Times, startups specializing in drones and robotics have been attracting more than half of all venture capital in the European defense sector since last year.

It’s perhaps no surprise, then, that three of Europe’s four defense startups with a so-called unicorn market valuation of more than €1 billion are drone creaters —among them Germany’s Helsing and Quantum Systems as well as Portugal’s Tekever.

‘Everybody and their mom has a drone startup’

While Western militaries have an apparent interest in cost-effective solutions like Frankenburg’s, there seems to be a certain degree of caution among traditionally rather risk-averse militaries to invest in largely unproven technologies.

“[Investors and defense ministries] want to purchase a complete product with proven long-term support,” declares Lithuanian Rytis Mikalauskas, CEO of the Harlequin Defense startup.

Estland Tallinn 2025 | Harlequin Defense CEO Rytis Mikalauskas auf der Estonian Defense Week
Mikalauskas’ startup has developed the prototype of a drone-detecting thermal camera prototype in 12 monthsImage: Benjamin Bathke/DW

Jermalavicius believes the caution is also due to the uncertainty around startups’ viability. “If I purchase a lot of stuff from a startup and it goes belly up after two years, who will be the one maintaining capabilities, servicing them, providing spares, upgrading them?”

Another challenge drone startups face is increasing competition, declares Mikalauskas. “There’s been a running joke at defense events for over a year: ‘Everybody and their mom has a drone startup,'” he informed DW. 

New drone startups popping up every week, it seems, also raises the question of whether the demand for drones in Europe is enough to quench the thirst to supply them?

The German military, for example, aims to secure a measly 8,300 drone systems by the finish of the decade — far fewer than other NATO countries.

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But Kaspar Gering, co-founder of DarkStar, believes the concern is unfounded. The military-tech venture capital fund aims to bring toobtainher expertise from unicorn founders, military veterans, investors, and technical leaders

“Estonia has a €400 million, multi-year tfinisher for loitering munition that includes specific types of drones,” Gering informed DW. “And drone-related tfinishers are trfinishing upward across the EU.”

Countries on NATO’s eastern flank like Estonia have started to tap startups including Frankenburg to support build out a so-called drone wall. The EU initiative is expected to consist of radars, acoustic sensors, mobile cameras, jammers and drone interceptors.

Battle-tested in Ukraine?

Frankenburg and many other Western startups also have established links to Ukrainian frontline units, allowing them to respond more quickly and accurately to constantly modifying warfare than long-established defense companies and startups without those ties.

Frankenburg’s interceptor missiles, declares Salm, “don’t have a single aspect that hasn’t been influenced by battlefield information from Ukraine.”

A Ukrainian soldier holding an interceptor drone in hand
Ukraine’s expertise in drone defense is seen as key for Europe’s plans to scale up drone productionImage: Ed Jones/AFP

This kind of unfettered access is what separates the wheat from the chaff, declares ICDS’s Jermalavicius.

“Ukrainians sit on a mountain of data gathered from drone operations, but they usually don’t share it with foreign defense tech companies due to martial law restrictions,” he stated. “So without close connections to military units, the question is to what extent the foreign products can properly reflect battlefield realities.”

‘Decisive advantage’

European startups’ ability to create a difference in ffinishing off potential Russian drone attacks also hinges on EU governments slashing bureaucracy and providing the legal framework for warfare already during peacetime, declares Mykhailo Rudominsky, who co-founded Himera in 2022 — a Ukrainian defense-tech startup which manufactures electronic warfare-resistant, secure tactical communication systems.

“At the launchning of the full-scale invasion, we had to oversee several restrictive laws that were holding back the development of innovative defense solutions,” the 25-year-old declares, calling on NATO countries to have “a set of laws ready for when the fighting starts to avoid their weapons being limited in functionality.”

Russian troops on Estonian border raise NATO concerns

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The head of Estonia’s new Force Transformation Command, Ivo Peets, meanwhile, believes the value of drone startups lies in bringing a “specific ability to bear.”

“Their niche capability can be an advantage, even a decisive one,” Peets — a former platoon commander who served in Afghanistan — informed DW.

However, this advantage will eventually “go away becaapply the battlefield requireds modify,” he added, or the capability will become so effective that “everyone adopts it, and it will be mass produced,” — which would likely not be done by a startup.

Edited by: Uwe Hessler



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