From Iran to NATO’s Eastern Flank, Investor Warns of Rising Drone Risks to Private Companies

Recent damage to Amazon Web Services’ cloud operations in the Middle East during a drone strike, as well as repeated drone incursions near NATO’s eastern flank, highlights how private critical infrastructure can be exposed to low-cost aerial threats. This signals that not only governments but also businesses should start investing in defence systems and be ready to safeguard their operations.

On April 1, Iran’s Revolutionary Guard Corps (IRG) threatened to target a list of US-linked technology companies operating in the region, including Google, Microsoft, Apple, Nvidia, according to media reports and IRG-linked channels. The threat was made as a response to the US and in retaliation for US and Israeli strikes on Iran.

Meanwhile, Amazon Web Services cloud operations in Bahrain were damaged for a second time by a nearby drone strike amid the escalating conflict in Iran.

According to Daiva Rakauskaitė, Managing Partner at Aneli Capital, the conflict in the Middle East shows that private companies, especially those providing critical infrastructure, such as cloud platforms and data centers, are increasingly becoming targets for any adversaries.

“Recent threats and attacks against the US companies are a clear example of how private-sector infrastructure can be disrupted alongside traditional military or state targets. With drones becoming cheaper and more sophisticated every year, attacks against private companies can become more common, and businesses should be prepared,” she says.

Even before the war in Iran, countries and private investors had already significantly increased defence spending. A recent NATO Secretary General’s Annual Report shows that European Allies and Canada last year increased defence spending by 20%, compared to 2024.

Meanwhile, venture capital investments in defence startups, including those that include dual-use technologies used by civilians, grew to $49.1 billion from $27.2 billion a year earlier, according to PitchBook calculations.

A report by Pitchbook shows that autonomous systems were among the most funded startups, while counter-unmanned aerial systems and autonomous manufacturing are rapidly emerging as priorities.

According to Rakauskaitė, the war in Iran can further encourage capital flow to anti-drone systems, and should act as a wake-up call for businesses operating critical infrastructure not only in the Middle East. Another region where strategic companies should protect against drone threats is the NATO Eastern flank, where flying objects incursions from outside countries have disrupted airports, Rakauskaitė says.

Last year, a drone in Poland disrupted airports and Ryanair operations. At the start of April, Lithuanian authorities held exercises at Achema, the largest fertilizer producer in the Baltic states, simulating a drone attack on the company’s premises and the response to a fire and a major chemical accident, highlighting the need for companies to prepare for such scenarios.

“As countries and venture capitalists invest more in defence technologies, companies should use this moment to reassess their risk exposure and invest in solutions that help protect their operations, reputation, and employees. For businesses operating near NATO’s eastern flank and all to the west flank, the growing frequency of airspace incidents should prompt a broader rethink of resilience planning, from site protection to crisis protocols and insurance assumptions,” Rakauskaitė says.

She stresses that Central and Eastern European countries, including the Baltics and Poland, are well-positioned to become a dual-use defence hub. CEE countries have lots of hidden talent, and are located next to Ukraine, which gives them abilities to test their technologies in the real world.

A recent report by Dealroom and the NATO innovation fund shows that European defence, security, and resilience startups last year raised $8.7 billion, while Central and Eastern Europe showed the fastest growth in deal velocity.