VC Investment in European Defense Tech to Hit Record $1B in 2024

Driven by geopolitical tensions and the war in Ukraine, venture capital funding in European defense startups has surged five-fold since 2018.

Venture capital investment in European defense technology is set to reach $1 billion in 2024, marking a significant milestone for the continent.
Since 2018, VC funding in the sector has grown five-fold, totaling $3 billion, with Germany, France, and the UK receiving 87% of the investment.
A new report, The State of Defence Investment 2024, highlights the critical role of startups in advancing defense capabilities amid changing battlefield dynamics.
Munich leads European cities in defense tech investment, largely due to the $487 million raised by AI startup Helsing in 2024.
Despite Europe's growth, the U.S. remains dominant in the sector, though U.S. investors have increasingly funded European defense startups, providing 66% of the capital this year.