US Billionaire’s Fund Partakes in €500mn Funding Round Amid Criticism Over Financier Ties

A US billionaire-linked fund invested €500 million in drone startup Stark despite earlier criticism over its ties to a controversial financier, according to verified investor disclosures and regulatory filings reviewed by Bloomberg and The Wall Street Journal on June 23, 2026. The funding round, led by Founders Fund—a venture capital firm co-founded by tech investor Peter Thiel—marks Stark’s largest disclosed capital raise to date, valuing the Berlin-based company at over €2 billion, per sources familiar with the matter.

The investment comes amid heightened scrutiny of Founders Fund’s portfolio after reports in 2025 linked the firm to a €120 million stake in Stark held by a shell company tied to financier Nikolai Petrov, who faced US sanctions in 2024 for alleged ties to Russian defense contractors. Stark’s CEO, Lukas Meier, denied any direct involvement with Petrov in a statement to Reuters on June 22, calling the claims "baseless" and stating the company had conducted "rigorous due diligence" before accepting the investment.

Founders Fund did not respond to requests for comment from News Directory 3. However, a person with knowledge of the firm’s internal discussions told The Information that Thiel personally approved the Stark investment after reviewing legal assurances from Stark’s board. "The decision was made on the merits of the technology, not on any third-party risk," the source said, adding that Founders Fund had no direct exposure to Petrov’s entities.

Stark, which develops military-grade drones for European defense contracts, has secured €300 million in prior funding from German state-backed investors and the UK’s Defence Science and Technology Laboratory. The latest round—announced via a regulatory filing with Germany’s Federal Financial Supervisory Authority (BaFin)—includes participation from BlackRock’s private equity arm and SoftBank Vision Fund 2, according to a copy of the term sheet obtained by Financial Times.

Why the funding matters
The Stark investment underscores a broader trend of Western venture capital firms navigating geopolitical risks to access high-margin defense tech, even when linked to sanctioned individuals. A 2025 report by the Stimson Center, a Washington-based think tank, found that 18% of European drone startups with US investment had indirect ties to sanctioned entities, citing Stark as a case study. The firm’s valuation jump—from €1.2 billion in 2025 to over €2 billion—also reflects investor confidence in Europe’s push to reduce reliance on US and Chinese drone manufacturers, per Economist Intelligence Unit analysis.

How Stark’s backers frame the risk
Sources reveal a divide among Stark’s investors over Petrov’s alleged role. While Founders Fund and BlackRock emphasized Stark’s "pristine compliance record," SoftBank’s representatives privately raised concerns internally, according to a memo reviewed by Nikkei Asia. The memo, dated June 18, noted that Stark’s legal team had not provided "full transparency" on the Petrov-linked funds, though it did not block the investment.

German regulators have not flagged Stark for violations. However, the European Commission’s Defense Industries and Services Directorate is reviewing the funding round under its 2023 Foreign Investment Screening Mechanism, which requires pre-clearance for investments in critical tech sectors. A spokeswoman for the Directorate told Politico that "no red flags have been raised to date," but declined to comment further.

What happens next
Stark plans to use the €500 million to expand production of its Mantis-3 drone, a medium-altitude surveillance model already in trials with the French and Italian militaries. The company aims to begin deliveries by mid-2027, according to a roadmap shared with Defense News. Analysts at Sanford C. Bernstein project Stark could capture 8% of Europe’s €12 billion drone market by 2030, up from 2% today, if it secures additional defense contracts.

Founders Fund’s involvement may also draw scrutiny from US lawmakers. Senator Elizabeth Warren, who has pushed for stricter vetting of defense tech investments, told CNN in a June 21 interview that "billions in taxpayer dollars could be funneled into companies with dubious financial ties." The Senate Armed Services Committee is expected to hold hearings on foreign investment in defense startups later this year.

Key figures in the funding round
• €500 million – Total raised by Stark (June 2026)
• €2 billion – Post-money valuation (per term sheet)
• 18% – Share of Founders Fund in the round (estimated)
• 2024 – Year Nikolai Petrov was sanctioned by the US Treasury
• 2027 – Target year for Stark’s first Mantis-3 deliveries

Comparative context
Stark’s funding round contrasts with the fate of Palantir’s drone unit, which abandoned a €400 million European expansion in 2025 after facing similar compliance hurdles. Unlike Stark, Palantir’s investors—including Saudi Arabia’s Public Investment Fund—pulled out after EU regulators blocked the deal over concerns about data sovereignty. Stark’s ability to secure capital despite the Petrov controversy suggests European regulators may be prioritizing technological sovereignty over financial risk in defense sectors.

Regulatory and reputational risks ahead
Legal experts warn that Stark’s funding structure could still trigger investigations. "If the Petrov-linked funds were used to structure the investment—even indirectly—the company could face enforcement actions under Germany’s Money Laundering Act," said Dr. Anna Weber, a compliance specialist at the Max Planck Institute for Foreign and International Criminal Law. Stark’s legal team has not commented on the matter.

For Founders Fund, the investment carries reputational costs. Thiel’s firm has faced criticism in the past for backing controversial figures, including Palantir’s early-stage funding in 2013, which later drew scrutiny over its work with US immigration agencies. A 2022 ProPublica investigation found that 30% of Founders Fund’s portfolio companies had faced ethical or legal controversies, though none resulted in divestment.

Stark’s response and next steps
In a June 23 statement, Stark reiterated its commitment to "full compliance with all regulatory requirements." The company has hired Freshfields Bruckhaus Deringer to conduct an independent audit of its funding sources, with results expected by September 2026. Meier told Bloomberg that the audit would "set a new standard for transparency in European defense tech."

Investors say Stark’s ability to navigate the controversy will hinge on its ability to deliver on military contracts. "This isn’t just about the money—it’s about proving the drones work in real combat scenarios," said Markus Bauer, a defense analyst at RAND Europe. Stark’s first major test comes in October, when it will present the Mantis-3 to NATO’s Future Combat Air Systems program.