The war in Ukraine has brought drones to the forefront of modern warfare, creating a surge in demand for counter-drone systems. However, legacy solutions to counter drones, such as ground-based defense systems and cyber warfare, often come with a hefty price tag. German startup Alpine Eagle is addressing this issue with its cost-effective airborne solution, Sentinel, which has secured a €10.25 million Series A round led by British deep tech VC firm IQ Capital.

Founded in 2023 by Dutch entrepreneur Jan-Hendrik Boelens, Alpine Eagle's Sentinel is a mix of software and hardware focused on cost efficiency. Unlike ground-based competing solutions, Sentinel is airborne, with modular sensors that aren't hindered by terrain and other obstacles, while avoiding becoming a stationary target. Its mothership carries kamikaze interceptors that can capture objects with nets or destroy hostile drones altogether.

The Munich-based startup has already secured the German army as its launch customer, in addition to other government agencies, and achieved seven-digit revenues in the first 12 months of operation. This success has driven demand for the technology primarily in the military sector, with potential applications also existing in law enforcement and other sectors.

The new funding will help Alpine Eagle expand its team of machine learning practitioners and aeronautical engineers, with new hires across product, engineering, business development, and sales bringing its headcount to 40. The startup will also focus on expanding into the U.K. market, with the country being a key target in its growth strategy.

Alpine Eagle's success is part of the rise of European defense tech, with VC interest in the sector increasing, especially in countries that feel the most at threat. The startup's cap table now includes funds from Estonia, Germany, and Poland, with returning investors General Catalyst and HCVC also participating in the round.

Boelens emphasized the importance of not rushing Sentinel's entry into Ukraine, instead opting to validate the system with the German army before testing it in Ukraine. The startup is currently talking to different brigades to identify use cases in the front line, including the challenge of fiber optic drones that use cables instead of radio frequency, making them harder to detect or jam.

Alpine Eagle's airborne system can integrate various sensors, including radar panels, to detect low-flying drones that often evade ground-based systems. The system also employs AI, with data processing done onboard the hardware itself for navigation purposes, as well as data collection to retrain its algorithms and develop more adaptive tactics.

One key tactical aspect of Sentinel is swarming, which follows the same logic of limiting costs and casualties in modern warfare that is increasingly unmanned. By promoting high automation levels, the system enables a single operator to manage multiple drones, reducing the need for human pilots and increasing efficiency.

As the demand for counter-drone systems continues to grow, Alpine Eagle's innovative approach is poised to make a significant impact in the defense tech sector. With its cost-effective airborne solution, the startup is well-positioned to address the challenges posed by the increasing use of drones in modern warfare.