LiveDrop raises $2.5m to expand secure offline data transfer for defense and dual-use markets

Why did LiveDrop raise $2.5 million in an oversubscribed round to advance its network-free data transfer platform?

LiveDrop, a Netherlands-based defense technology startup, announced the successful close of a $2.5 million seed funding round aimed at scaling its proprietary secure offline data transfer platform. The Eindhoven-headquartered firm, founded in 2021, specializes in software-driven optical encoding systems that enable secure, unidirectional data transmission without the need for network connectivity.

The oversubscribed round was led by Dutch venture capital group Value Creation Capital and included participation from the Netherlands’ defense innovation fund Secfund, UK-based Kadmos Capital, and returning investor Patronum Investment. Strategic angel investors—including Wi-Fi pioneer Cees Links—also participated in the round, underscoring investor confidence in LiveDrop’s mission-critical and dual-use technology proposition.

The funds will be used to deepen defense sector deployments, accelerate adoption across NATO-aligned markets, and expand the software’s integration across high-security civilian applications, including cybersecurity, healthcare, and critical infrastructure.

What makes LiveDrop’s data transfer platform attractive for national security, defense, and cybersecurity stakeholders?

LiveDrop’s core offering is a secure, software-only solution that uses optical encoding to transfer data offline, ensuring complete network isolation. The platform runs on off-the-shelf hardware such as smartphones, laptops, and cameras and is designed for deployment in sensitive or air-gapped environments, particularly in military or intelligence settings where any radio-frequency-based communication channel can be a security risk.

Unlike encrypted wireless systems or hardware-intensive solutions, LiveDrop’s technology requires no physical medium or network interface, mitigating risks of interception, jamming, or digital backdoor attacks. This approach enables what the company describes as “true unidirectional transfer,” making it especially useful for operational theaters, classified missions, or cybersecurity scenarios where data sovereignty and transmission assurance are paramount.

LiveDrop currently employs a 12-person engineering-heavy team focused on integrating the platform into defense mission systems, with growing interest from healthcare institutions and cybersecurity operators seeking alternative communication protocols that are resilient to cyber warfare or infrastructure compromise.

How does LiveDrop’s dual-use strategy align with current defense funding and commercial adoption trends across Europe?

LiveDrop’s dual-use roadmap aligns with ongoing public and private investment priorities across Europe and NATO territories. With rising cyber threats and a renewed emphasis on digital sovereignty, defense agencies are increasingly allocating funds to technologies that ensure secure, infrastructure-independent communications.

The startup’s platform is designed to complement this paradigm shift by eliminating the need for conventional networks and instead leveraging light-based encoding through standard device cameras and screens. Its ability to function with existing hardware, rather than requiring bespoke devices, adds to its cost-efficiency and integration viability.

Analysts believe LiveDrop’s dual-use potential broadens its commercial runway significantly, positioning the company to serve not just government clients but also critical sectors such as emergency healthcare, secure communications for regulatory bodies, and data exchange for judicial or law enforcement agencies.

What was the composition of the funding round and what does investor sentiment suggest about the platform’s scale potential?

The $2.5 million seed round closed with active participation from both local and international investors. Value Creation Capital, a known backer of deep-tech startups in the Netherlands, served as the lead investor. Secfund, a specialized Dutch fund supporting early-stage defense innovations, provided strategic sector alignment, while UK-based Kadmos Capital expanded LiveDrop’s European investor footprint.

Returning investor Patronum Investment reaffirmed its commitment, signaling long-term confidence in the technology and team. Notably, the presence of strategic angel Cees Links—credited with creating the world’s first wireless LAN product—provides not only capital but also credibility and advisory depth in connectivity architecture.

Investor sentiment appears bullish on LiveDrop’s immediate ability to secure defense contracts and scale through integrations rather than full-stack hardware deployment. The fact that the round was oversubscribed before closing suggests high conviction in the market’s need for offline-first, unidirectional communication protocols in a time of geopolitical cyber risk escalation.

What are LiveDrop’s expansion priorities following the close of this investment round?

With new capital in hand, LiveDrop plans to accelerate its rollout across NATO-aligned defense ecosystems and pursue pilot deployments in European government networks. The company aims to demonstrate interoperability with existing mission software and hardware platforms, securing early procurement contracts in the coming 12 to 18 months.

On the commercial front, LiveDrop is exploring partnerships with cybersecurity platforms, hospitals, and secure device manufacturers to implement its optical encoding technology in portable and critical care scenarios. Given the regulatory environment surrounding health and judicial data in the European Union, offline data transfer solutions offer new compliance-friendly models that don’t depend on cloud infrastructure or internet access.

The firm’s immediate hiring strategy includes expanding engineering, sales, and operational deployment teams to support integrations across multiple geographies and use cases.

How are institutional investors evaluating LiveDrop’s position in the offline security and dual-use innovation space?

Institutional investors view LiveDrop as part of a growing class of European security startups focused on resilient, low-infrastructure digital tools. These technologies are increasingly relevant given growing constraints around national data regulation, cybersecurity threats, and battlefield communications requiring minimal digital footprints.

From an investment perspective, LiveDrop benefits from its platform’s modularity, software-first design, and the fact that it operates without specialized hardware dependencies—factors that contribute to scalability, gross margin potential, and shorter time-to-deployment.

Analysts expect demand for low-profile, passive transmission tools to rise across both conflict zones and domestic crisis management agencies, offering LiveDrop multiple adjacent markets. The company’s strategy to align with both defense budgets and commercial cybersecurity needs makes it well positioned to benefit from both government-backed funding and enterprise SaaS-style integrations.

What is the long-term growth outlook for LiveDrop and when is a Series A round expected?

LiveDrop is expected to pursue a Series A round in 2026 following the successful execution of defense pilots and early commercial contracts. The firm’s long-term growth trajectory includes expansion into North America and the Asia-Pacific region, targeting allied markets where secure data transmission is increasingly decoupled from centralized infrastructure.

If LiveDrop achieves successful government certifications and interoperability approvals over the next 12 months, analysts believe it could become a standard integration layer for secure communication infrastructure across sensitive environments. Its focus on sovereignty, hardware-agnostic deployment, and zero-network dependency may position it as a category-defining player in the emerging field of offline secure tech.

Future filings may include patent expansion, standardization initiatives, and government procurement certifications that would validate its core platform at scale.