German defence technology startup SE3 has secured $30 million in Series A funding to develop artificial intelligence software that allows drones and autonomous ground vehicles to operate without relying on GPS. The investment comes as European governments increase defence spending and search for more reliable technology to support military operations in difficult environments.
The SE3 funding round was led by venture capital firm Accel, with participation from Keen, Lakestar, and Seedcamp. Announced on November 12, 2026, the investment will help the Munich-based company expand its engineering operations, develop its autonomous systems software, and strengthen its presence across Europe.
Unlike traditional drone manufacturers, SE3 focuses on the intelligence that allows autonomous machines to understand their surroundings. Its technology helps drones and ground vehicles navigate difficult terrain, share information, and coordinate movements when satellite navigation or communication systems become unreliable.
The company is already working with military customers in Ukraine and Germany, including the German armed forces, known as the Bundeswehr. These relationships give SE3 an opportunity to test its technology in demanding environments while developing products for a growing European defence market.
SE3 has not disclosed its valuation following the investment. However, the latest funding comes less than five months after the company emerged from stealth with approximately €5.5 million in seed financing. The rapid progression to a larger funding round reflects growing investor interest in artificial intelligence designed for physical-world applications.
How SE3 Funding Will Advance GPS-Free Drones and Autonomous Systems
SE3 was founded by Lukas Köstler, Simon Klenk, and Professor Daniel Cremers. The company emerged from computer vision research at the Technical University of Munich, where Köstler and Klenk pursued doctoral studies. Cremers, a respected researcher in computer vision and artificial intelligence, serves as the company's chief science officer.
The founders are addressing a problem that has become increasingly important in modern warfare. Autonomous machines often rely on satellite navigation to determine their location and follow assigned routes. However, GPS signals can become unreliable when electronic warfare systems interfere with satellite communications.
When navigation signals fail, conventional drones may struggle to identify their positions or complete planned missions. This creates serious challenges for military operators who need accurate information from surveillance equipment. SE3 is developing software that helps autonomous systems understand where they are by analyzing their surroundings instead of depending entirely on satellite signals.
Its platform combines computer vision, artificial intelligence, and data collected from multiple sensors. The software then processes this information to create a three-dimensional representation of the operating environment. As conditions change, connected machines can use that shared information to adjust their movements and coordinate tasks.
For example, several drones and unmanned ground vehicles could operate in the same area while contributing information to a common map. This would help operators understand their surroundings without manually reviewing every individual video feed. It could also support faster decisions when terrain or operational conditions change.
Another important feature is the company's approach to hardware compatibility. SE3 is developing software that can work with autonomous systems from different manufacturers. This means military organizations would not necessarily need to purchase every drone, sensor, or ground vehicle from the same supplier.
The approach addresses a common challenge in defence procurement. Armed forces often operate equipment acquired from multiple companies, and those systems do not always communicate effectively. As a result, integrating new technology can become expensive and time-consuming.
By providing a shared software platform, SE3 hopes to make existing equipment easier to connect. The company believes this could reduce dependence on individual hardware suppliers and allow customers to upgrade their autonomous capabilities without replacing entire fleets.
SE3 is also developing natural-language controls that allow operators to communicate with autonomous systems using spoken or written instructions. Instead of manually controlling each vehicle, an operator could describe a reconnaissance task and allow the software to identify suitable equipment.
However, the technology remains at different stages of development. According to CEO Lukas Köstler, the company's basic GPS-independent navigation capabilities have already been deployed thousands of times. Its more advanced AI system for coordinating entire fleets still requires further development over the next one or two years.
The software can also operate locally on devices without maintaining a constant cloud connection. This is particularly valuable in environments where communications may be disrupted or unavailable. Nevertheless, successful GPS-free navigation does not mean autonomous systems can operate without limitations, and complex missions still require reliable safeguards and human oversight.
The new SE3 funding will support further development of these capabilities. The company plans to expand its workforce from roughly 40 employees to around 120 while strengthening its engineering, commercial, and operational teams.
It also intends to grow beyond its existing activities in Germany and Ukraine. Planned expansion includes a presence in the United Kingdom and additional European markets. These moves should help SE3 support existing contracts and pursue new partnerships with military organizations and technology manufacturers.
Why Europe's Defence Technology Boom Is Creating Opportunities for SE3
The latest SE3 funding arrives during a period of rising European investment in defence technology. Russia's war in Ukraine has exposed weaknesses in traditional military systems and increased demand for affordable autonomous equipment. Drones have become especially important for reconnaissance, surveillance, and other military operations.
At the same time, electronic warfare has demonstrated how vulnerable satellite navigation and wireless communications can be. Systems that perform well under normal conditions may become less dependable when signals are disrupted. This has encouraged defence companies to develop technologies that allow autonomous machines to continue working in difficult environments.
European policymakers are responding with plans to increase defence capabilities and reduce dependence on foreign suppliers. Under the ReArm Europe Plan and Readiness 2030 initiative, the European Union aims to enable up to €800 billion in additional defence spending by 2030. The initiative includes support for drones, air defence, cybersecurity, and other military technologies.
The European Commission has also introduced plans for a European Drone Defence Initiative and stronger surveillance capabilities along the bloc's eastern borders. These programmes could create opportunities for companies developing autonomous systems, sensors, and software.
For SE3, the timing is important. The company already works with Germany's Bundeswehr and has contracts connected to Ukraine. It also maintains partnerships with defence technology companies, including HENSOLDT, Auterion, and ERC System.
These relationships could help SE3 integrate its software into existing military platforms. Auterion, for example, develops software and computing technology for autonomous systems. SE3's spatial intelligence capabilities can operate on Auterion's Skynode platform, allowing customers to add new functions to equipment they already use.
Such partnerships may become increasingly valuable as European governments seek technology that works across different manufacturers. Military procurement can involve long development cycles, strict requirements, and complicated integration processes. Software providers that simplify those challenges could gain an advantage.
However, SE3 is entering a competitive market. Other European startups are developing software for autonomous drones, coordinated fleets, and GPS-independent navigation. Norwegian company Six Robotics and London's Occam Industries are among the businesses pursuing opportunities in related areas.
Larger defence technology companies also present competition. Germany's Quantum Systems, for instance, has attracted substantial investment to expand its drone operations. Unlike manufacturers that focus on building aircraft and other physical equipment, SE3 aims to provide an intelligence platform that can work across multiple hardware systems.
That distinction could become central to its business strategy. If military customers prefer independent software that supports equipment from several suppliers, SE3 may be well positioned. However, established manufacturers could choose to develop their own autonomous software or bundle similar capabilities with their products.
Investors appear interested in the company's technical background and early customer relationships. Accel partner Matt Robinson has highlighted the founding team's experience in spatial AI and the difficulty of developing reliable intelligence systems for autonomous machines.
Beyond defence, SE3 sees opportunities in civilian robotics. The company expects military contracts to remain its main commercial focus in the near term, but it plans to begin exploring other industries from 2027.
Industrial robots, logistics vehicles, and autonomous inspection systems could potentially benefit from technology that helps machines understand complex physical environments. For example, robots operating in warehouses or industrial facilities may need to navigate areas where satellite signals are weak or unavailable.
Still, expanding into civilian markets will require SE3 to demonstrate that its technology works reliably outside military environments. Commercial customers will also expect affordable integration, safety protections, and clear operational benefits.
The $30 million investment gives SE3 additional resources to pursue these goals, but funding alone will not determine its success. The company must continue improving its technology, delivering on military contracts, and proving that its software can operate across different autonomous platforms.
For now, SE3's progress highlights a broader shift in artificial intelligence investment. While much of the industry's attention has focused on chatbots and digital assistants, companies are increasingly exploring how AI can help physical machines navigate and make decisions.
As European governments increase defence investment, SE3 has an opportunity to become an important supplier of autonomous systems software. Its next challenge will be turning early deployments and research expertise into a platform that customers can use reliably at scale.
