T3 Defense Buys Majority Stake in Israeli Drone Maker Project35 for $14M
Event summary
- T3 Defense acquired a 60% stake in Project35 for $14M (21,059,871 shares + $1.25M promissory note).
- Project35 reported $1.4M revenue in 2025 and expects $2.4M in 2026.
- T3 Defense will invest an additional $2.5M into Project35 over the next year.
- Project35's autonomous aerial interceptor completed successful live-fire trials.
The big picture
T3 Defense's acquisition of Project35 positions it as a key player in the rapidly growing drone and counter-UAV market. The deal aligns with T3 Defense's strategy of acquiring mission-critical defense technologies that address evolving battlefield needs. With Project35's field-proven platforms and autonomous interceptor, T3 Defense strengthens its access to active defense procurement channels.
What we're watching
- Integration Challenges
- How T3 Defense will integrate Project35's technology into its existing portfolio and scale production.
- Market Expansion
- Whether Project35 can leverage T3 Defense's commercial pathways to expand beyond Israel's defense customers.
- Technological Validation
- The pace at which Project35's autonomous interceptor moves from trials to full operational deployment.
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