We sat down with Frederico Baptista, one of the three co-founders of Zero Industries, a defense startup backed by Project Europe and Heartfelt VC, building navigation systems for drones operating in GPS-denied environments. We discussed how their student project turned into a company, working with Project Europe, and the challenges of innovating in European defense.
How Did You Meet Your Co-Founders?
We met during our bachelor’s in aerospace engineering in Portugal and became best friends.
After that, we decided to do our master’s separately and each chose a different country. I came to Toulouse, João went to the Netherlands, and Álvaro went to Rome, to Sapienza. Each of us specialized in a different area:
- I focused on systems engineering and drones.
- João focused on navigation.
- Álvaro focused on computer vision, working with the European Space Agency.
After our master’s degrees, we knew we wanted to do something together. Defense was a natural direction because we are all very passionate about it.
When the war in Ukraine started, we followed it every day, and we still do. That was a big driver.
What Led to the Creation of Zero Industries?
We asked ourselves a simple question: What is the main technical problem on the front lines right now?
We realised that one of the biggest issues was navigating without GPS. There were more and more reports that GPS was being jammed at the front line, affecting almost every position. At the same time, almost no alternatives were being deployed.
So we decided to meet in Toulouse and build something.
We took a two-week break and basically just worked nonstop: fly the drone, come back, test, tweak, and fly again. At the beginning, the goal was just to build a cool prototype and maybe a nice video. We did not imagine that it would turn into a full company.
By chance, at the end of those two weeks, we saw there was an EDTH Hackathon in Warsaw. We thought: why not catch a flight to Warsaw and see what we are capable of?
At the hackathon, we presented to a large audience and spoke with a lot of military personnel. The response was very strong.
Many people showed interest in what we were doing. That is the moment we realised this could be very valuable. From there, we began looking for investment and formally established Zero Industries.
What Are You Building at Zero Industries?
We are developing a module to test all our technology. It is built from off-the-shelf components, we assemble it ourselves, and our software runs on top. These components are intentionally cheap so that the module can be integrated into almost any drone.
However, some drone manufacturers already have excellent cameras and onboard processing power. It does not make sense to add another camera to a drone that already has great sensors. In those cases, we provide a software-only integration.
So we can sell:
- A module (hardware plus software) for platforms that need a full solution,
- Software only, for platforms that already have strong hardware.
Right now, we are focusing on developing the module and working with French drone manufacturers (I cannot name them yet) that already have very good hardware. For them, we only need to provide software.
You Were Quite Early in the GPS-Denied Navigation Space, Right?
We were already reading early in the year that GPS was not available on the front lines and that it was becoming a serious issue. So we started developing our solution before the big public incident with von der Leyen’s aircraft and the wider media attention.
The problem itself is not new. At least in Ukraine, it has been there for quite some time. What changed is that now it is widespread and very visible. Procurement agencies are starting to treat GPS-denied capability as a requirement.
For decades, Western militaries have built an entire environment on the assumption that GPS never fails. That is clearly not true. It is actually quite easy to block GPS. When GPS disappears, many “smart” systems suddenly become useless.
I think the next generation of systems has to be built on the premise that GPS will fail and that we must not depend on it.
How Did You End Up in Project Europe?
Honestly, there is a lot of luck involved in this journey.
We were in touch with some VCs in Portugal who were interested in us, and through that, we got connected with Project Europe. The process was very smooth and fast. We liked them, they liked us. It felt very natural.
I know it is not easy to get into Project Europe, but in our case, it just happened. We had good timing, good results from the hackathon and our early work, and we were in the right position to benefit from that luck.
What Are the Three Pivotal Moments in Zero Industries?
- First, the EDTH Warsaw Hackathon. That was the moment we realised people in the field found our work valuable.
- Second, Project Europe. That gave us the resources and confidence to really build a company.
- Third, and maybe the most important, is the team itself. We have been great friends for years, and we work very well together. Each of us brings deep expertise in a domain we need: systems, navigation, and computer vision. That makes us much more resourceful than many teams.
One of those moments goes back six years, when we met. The others are more recent, but all three are fundamental.
When You Think About Risks for Your Business, What Worries You the Most?
There are several types of risk.
Institutional and testing risk. To build and validate our technology, we need the ability to test in realistic conditions. Ukraine provides a lot of that, which is extremely valuable. But in many Western countries, armies and institutions still struggle to adapt.
We are three years into the war, and many processes remain very slow and bureaucratic.
Countries like France are opening up more space for innovation, but the process still takes time. You often need to know the right person at the right moment. The defense industry is still very accustomed to lobbying and legacy primes, which is a risk for startups like ours.
Political risk. I worry that Europe might at some point switch off its interest in defense again. Right now, we are taking steps in the right direction, and movements like yours help push defense innovation forward. But political climates change.
There are elections coming, opinions shift, and I sometimes fear we could wake up one day in a Europe that has decided defense is no longer a priority, even with a war at our borders.
If that happens, innovation-driven companies like ours make less sense, and the big primes just keep producing the same things they have always produced.
Technical risk. We are working at the state of the art, and there are still many things we have not fully solved. There is always a risk that some technical challenges turn out to be harder than expected.
However, one thing I have learned is that technical risks are mostly mitigated by work. If you put in more hours, try more experiments, and keep going against the wall, eventually you find a way through.
Have You Spoken to the French Army?
We have spoken with different parts of the French armed forces: people from special forces, former special forces, and people working on research and development for drones in the new drone school.
We have not yet worked with them officially. It is still very bureaucratic and complicated to enter. But we are making progress, and I think we will have good news to share soon.
This is not unique to us. We spoke with a large French drone manufacturer that has been in business for 20 years. They told us they only got permission last year to test whenever they want.
It takes time.
Are You Fundraising in the Near Future?
At the moment, we have solid support at the pre-seed stage, so we are focused on building the best solution possible and getting a robust, sellable prototype.
When it is time to industrialise, we will need more funding. Our current thinking is to raise around next year, probably from April onwards, but it depends on how everything develops.
So in the immediate term, we are not fundraising. But we will be eventually.
What About Hiring? Are You Growing the Team?
Yes, but in a very targeted way.
One of our big advantages is that we are three very technical aerospace engineers who cover a lot of ground. On top of that, we are now recruiting mainly for computer vision roles.
We are investing heavily in our own internal models, training and refining them, and pushing them to beat the state of the art. It is going very well, and we are hiring to accelerate that.
We have strong support from ISAE-Supaero, our university. Because it sits under the Ministry of Defence, they opened up the possibility for us to supervise master’s theses and internships directly related to Zero Industries. The university is really putting in effort to give us the best opportunities.
Toulouse is full of aerospace giants like Airbus and Thales. If we can attract talent before they do, that is a big advantage.
We are also very picky. The right person can massively accelerate the company; the wrong person can damage it. So we have a strict internal policy about who we bring on board. That said, we are starting work with some very interesting new people.
Do You Already Have Traction or Pilot Projects?
Yes, we are currently collaborating with several drone manufacturers. However, most of that is under confidentiality, which is very typical in defense.
We have been approached by defense organisations and civil actors, and there is a lot of interest. But in this market, you often cannot talk publicly about your best references.
If You Could Start Over Today, Would You Do Anything Differently?
Philosophically, I would say no. I believe we get what we deserve at every point, and I am very grateful for where we are now.
If I had to give a more practical answer, I would have started earlier and been less afraid to be loud about what we were trying to do.
At the beginning, during the hackathon, I sometimes thought: “We are just three kids, what do we know about defense?” You hesitate to share your idea and to be very public about your ambition.
But the more we do, the more we understand that we actually know a lot, and the more we study, the more we learn. You do not start as an expert; you become one by doing the work.
So if I met my younger self, I would say: just start and go after it. You will see that things work out.
How Do People React Today When You Tell Them You Are Building a Defense Startup?
It has changed a lot.
I think if we had done this five years ago, many people in Europe would have said: “You are killing people, what are you doing? This is crazy.”
Now, the reaction is very different. People are more aware of the security situation and more understanding of the need for defense innovation. Of course, every now and then, we get a comment on LinkedIn saying we are contributing to killing civilians, but most of those are troll accounts.
Overall, Europeans, and especially technical people, are much more aware of the problem now. That is encouraging.
