00:01Behind Europe's rising defense stars, a quiet American hand is at work.
00:06German drone maker Quantum Systems gained an early US foothold with help from Inqtel, a CIA-backed investor.
00:12That is according to Sven Krook, the co-CEO of the firm.
00:16He says US investors helped the company open doors with American agencies.
00:22Ultimately, you have to win people over with your products and your performance.
00:26And naturally, you have to get your products to these customers.
00:28But of course, American investors, for their part, are familiar with the administration that prevails in the US,
00:35which makes it possible to establish a certain line of communication there.
00:39The comments highlight how US influence shapes a rising German defense firm,
00:43even as Europe seeks to rebuild its own more independent military.
00:47Berlin wants to rely less on Washington after President Trump threatened to abandon NATO,
00:52the alliance that protects Europe from Russia.
00:54But rebuilding Germany's long-neglected military may still depend on ties to US capital and US markets.
01:01We are talking about a valuation of $8 billion.
01:04American investors need major American financiers who are capable of helping them achieve their objectives,
01:10which are objectives for Europe, namely to build up defense capabilities and to establish European sovereignty.
01:16For that, you need these investors.
01:19Crook said an initially modest reconnaissance contract gave the company a boost and helped establish its credibility in Washington.
01:26A Reuters source says investments by IQT are typically small, but critical to building links in the US.
01:33In Europe, some observers worry about CIA influence over defense firms as a result of the stakes.
01:38The intelligence agency wouldn't comment on this story, but has previously said it's trying to optimize how it works with
01:44the private sector.
01:45Crook says every firm has a network behind it and has to pull whatever levers it can.
01:50For now, Europe has no equivalent to IQT, with some lawmakers arguing the region must do more to channel money
01:56into startups.
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