Finnish defence technology company Arctic RAVN has secured €2.5 million in convertible loan commitments, exceeding its €2 million target in five days. The company manufactures electronic speed controllers (ESCs) and is developing flight controllers (FCs) for unmanned systems, with products designed and manufactured in Finland using components sourced from Europe and NATO-allied countries. The financing will support increased production capacity and product development as Arctic RAVN aims to manufacture tens of thousands of ESC units by the end of 2026 and scale its annual output to as many as two million circuit boards over the longer term. The company did not disclose the investors participating in the convertible loan round.
Arctic RAVN develops and manufactures electronics and components for unmanned systems, primarily for defence and security applications. Based in Riihimäki and Espoo, the company produces electronic speed controllers and is developing flight controllers, motors and modular drone frames. Its products are designed and manufactured in Finland, using components sourced from Europe and NATO-allied countries. Arctic RAVN is a studio company of Finnish Defence House, a venture studio focused on building and developing defence technology businesses.
“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,” says Matti Vansén, CEO, Arctic RAVN.
Arctic RAVN launched its convertible loan round in October 2026 and received €2.5 million in commitments within five days, according to the company. The funding comes as it prepares to increase production of electronics used in drones and other unmanned systems.
The company has already invested more than €1 million in scaling up production of electronic speed controllers, which regulate the speed of electric motors. It aims to manufacture tens of thousands of these units by the end of 2026, with a significant share of the planned output already reserved by customers.
The next stage of its manufacturing expansion will focus on flight controllers, which manage a drone’s flight functions. Over the longer term, Arctic RAVN plans to increase its annual production capacity to as many as two million circuit boards.
CEO Matti Vansén said the company had received investor commitments despite not having officially launched any products. He also pointed to follow-up orders and discussions with European defence manufacturers as indicators of demand for locally produced drone electronics.
Arctic RAVN designs and manufactures its products in Finland, sourcing components exclusively from Europe and NATO-allied countries. The company aims to reduce reliance on single-source supply chains for electronics used in unmanned systems.
Its product portfolio includes electronic speed controllers, flight controllers and other components for drone platforms. Its approach focuses on providing electronics that can be integrated into unmanned systems while maintaining traceability of component origins.
Arctic RAVN is one of the studio companies of Finnish Defence House, a defence technology venture studio that identifies, funds and builds companies and supports their development.
Read the orginal article: https://arcticstartup.com/arctic-ravn-raises-e2-5-million/
