Venture Capitalists (VCs) were once hesitant to dabble in the controversial realm of defense technology, but by the year 2025, the European investment landscape is witnessing a stark shift. The defense market is buzzing with potential as the continent seeks to amplify its spending and technologically enhance its armament.
More VCs are now either raising defense-oriented funds or directing a portion of their existing assets to support startups focusing on maritime to autonomous drone technology and advanced weapons tech. The sector is starting to attract substantial investment. To underscore this, German Quantum Systems and Portuguese Tekever, both drone startups, gained unicorn status this year, while AI defense company Helsing collected €600m in funding, skyrocketing its valuation to €12bn — ranking it among Europe’s most esteemed startups.
07-07-2025
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