Drone maker Helsing has become one of Europe’s most valuable startups.

Helsing, valued at €5B, has become one of Europe’s most valuable startups, thanks to a surge in demand for drones and software for drones and fighter jets amid the war in Ukraine. The company has developed the HX-2 strike drone, which can carry ammunition and navigate without a pilot or GPS.

Helsing predicts that rising military tensions, particularly over the Ukraine war, will drive demand for thousands of such drones. The company said that connecting these drones through software to other weapons, including tanks and artillery systems, “could create a level of deterrence that is currently impossible.”

Helsing’s entry into the strike drone market has made it one of the most funded startups in the space as European governments brace for a possible reduction in US support for Ukraine. The startup plans to produce thousands of HX-2 drones annually without using Chinese components. The German government has contracted with the Ukrainian Ministry of Defense to supply 4,000 UAVs.