By Venture capital (VC) investment in European defense technology is set to hit $1 billion in 2024, a five-fold increase since 2018, according to a report by Dealroom. The rise in funding is attributed to growing geopolitical tensions and the ongoing conflict in Ukraine, with European startups increasingly securing defense-related capital.
Dealroom’s data shows that VC investment in defense tech across NATO and allied countries has surged by 25% in recent years, outpacing other sectors. Since 2018, European defense startups have raised $3 billion, with Germany, the UK, and France accounting for 87% of the total.
Germany, particularly Munich, has become a hub for defense tech funding, with battlefield AI startup Helsing raising $487 million in 2024. The UK’s “Silicon South West” region, known for defense and space industries, has also seen significant investment, especially in Bristol.
Jeannette zu Fürstenberg, head of Europe at General Catalyst, highlighted the importance of dual-use technologies, stating that AI can boost defense capabilities while also benefiting critical national infrastructure.
While the US remains the top player in defense tech, drawing 83% of global VC funding, 66% of European defense tech investments in 2024 came from American investors, reflecting a rise in cross-Atlantic interest.
