European Defense Tech Startups See Record $1.5B VC Funding in 2025

Venture capital investment in European defense startups reached a record $1.5 billion in 2025, solidifying the year as the industry's most active to date. According to Ukraine Business News, defense technology now comprises 6.2% of total European venture capital, a substantial increase from less than 1% in 2020, signaling a significant transformation in Europe's investment priorities. This surge in funding is primarily fueled by rapid advancements in artificial intelligence, robotics, and autonomous systems. These technologies are increasingly recognized as critical components of global security and resilience, attracting substantial new investment. The record investment in 2025 was bolstered by significant funding rounds, including a €600 million raise by German startup Helsing in June. Although Europe leads in venture capital investment for quantum technology, it trails the United States in the space technology and AI microchip sectors. The report underscores the strategic importance of AI microchips for bolstering resilient supply chains and sovereign computing capabilities. Furthermore, the sector is experiencing an expansion in its investor base, with projections indicating a 300% increase in investors in European defense technology by the end of 2025, compared to 2019 figures.