Counter-UAS Investment Continues as Monava Raises New Funding for AI Drone Detection

Swedish-Finnish company plans to expand production of passive acoustic detection technology as investor interest in counter-drone systems grows

Investment continues to flow into counter-uncrewed aircraft system (C-UAS) technology as governments and private investors respond to growing security concerns. The latest example comes from Northern Europe, where Swedish-Finnish defense technology company Monava has secured new funding to expand its AI-driven drone detection business.

Monava announced today that it has completed a new investment round led by Gungnir Capital, with participation from Foundry Ventures and Hede Capital. The company said it will use the funding to commercialize its technology and expand operations to meet increasing demand from defense customers.

The announcement reflects a broader trend across the defense sector. Capital has continued to move toward companies developing counter-drone technologies, including detection, identification, electronic warfare, and kinetic defeat systems. As drones have become a central feature of modern conflicts and security operations, investors have increasingly backed companies that address the growing need to detect and stop them.

Passive Detection for Modern Drone Threats

Monava develops AI-powered acoustic systems that detect, track, and classify drones by analyzing sound. Unlike radar or active radio frequency systems, the company’s sensors are fully passive. They emit no signals that can be detected or jammed.

The company says this approach allows its systems to identify threats in situations where traditional sensors may be less effective. According to the press release, Monava’s technology is already deployed across the Nordic region and in Ukraine, where testing and cooperation with armed forces have helped validate the system under operational conditions.

“The drone threat is evolving faster than most defence systems can keep up with. Demand for our technology is now increasing sharply, and the number of enquiries for our sensors exceeds our expectations daily. With Gungnir Capital, Foundry Ventures and Hede Capital behind us, we can accelerate development and meet the demand from European defence customers,” said Alexander Hebbe, CEO, Monava

The company said its growing order book prompted the need to scale production and expand its organization.

Investors Focus on Operational Capability

The investment comes as defense-focused venture capital firms continue to increase funding for companies developing technologies shaped by lessons from current conflicts.

Gungnir Capital, the lead investor, focuses on early-stage European defense and security companies. Managing Partner Max Villman, a former Swedish Air Force JAS 39 Gripen fighter pilot, will join Monava’s board of directors as part of the investment.

“Today, drones account for roughly 70 percent of all casualties in the war in Ukraine, and we must develop the means to counter that threat. Monava solves a real operational problem with technology that works in the field, and that is exactly the kind of company Gungnir Capital exists to back,” said Max Villman, Managing Partner of Gungnir Capital.

Counter-Drone Market Continues to Attract Capital

Monava’s funding follows a steady stream of investment in companies developing counter-UAS capabilities. While some firms focus on jamming or intercepting drones, others are building new sensor technologies designed to improve detection and tracking before a threat reaches its target.

The trend reflects changing operational priorities. Military organizations, critical infrastructure operators, airports, and public safety agencies are placing greater emphasis on layered counter-drone systems that combine multiple sensor types. Passive acoustic sensing has become one option within that broader approach because it can complement radar, radio frequency, electro-optical, and infrared systems.

As drone use expands in both military and civilian environments, investment activity suggests that technologies supporting detection and situational awareness remain an active area of growth within the broader counter-UAS market. Monava’s latest funding round adds another example of investors backing companies developing specialized capabilities to address that demand.

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