Defense tech startups, military personnel and investors gathered at London's Resilience Conference under tight security. Attendees cleared stringent checks, followed strict no-photo policies and watched moderators in full military uniform. NATO Innovation Fund chairs opened the conference with a stark warning. Russian drone attacks keep increasing in Ukraine. They estimated Europe could face elevated conflict within three to four years. European defense tech investment jumped

Amy Lewin and Anne Sraders tackled Europe's defense technology future in this week's Startup Europe podcast. They explored why the continent might actually need fewer drone companies rather than more. European defense tech investment jumped from $114 million in 2016 to roughly $1.5 billion so far in 2025. Forecasts suggest the total could hit $2.3 billion by year-end. However, most funding concentrates in one area: drones. The hosts questioned whether this clustering makes se

European defense technology startups have raised over €3.5 billion this year. Companies building drones, defense software and dual-use systems are turning the sector into one of Europe's fastest-growing verticals. Two European defense startups already crossed the $1 billion valuation mark this year. This signals a major shift from modest investments to serious capital flowing into the sector. Sifted identified twelve promising companies that could reach unicorn status soon. T

Sweden's most successful startup founders are now backing defense technology ventures. The group includes leaders behind Klarna, Spotify, Voi, and Kry. The Ukraine war and rising European tensions accelerated venture capital interest in dual-use and defense innovation. Sifted data shows European defense tech startups raised roughly €3.5 billion this year, nearly doubling the €1.8 billion raised throughout 2024. Swedish consumer tech founders are entering the defense race. Se

American venture capital firm Bessemer Venture Partners announced unlimited investment capacity for European defense technology startups. The $19 billion fund is making a major continental bet. London-based partner Alex Ferrara spoke at the Resilience Conference, explaining Bessemer's strategy. The firm plans roughly $1 billion in defense tech investments across approximately twelve European deals over the coming years. Bessemer is targeting aerial defense, space technology

European defense technology startups have raised roughly €3.5 billion this year, nearly doubling the €1.8 billion raised throughout 2024. Sifted identified 15 leading founders and executives reshaping the continental defense sector. Alexander Fitzgerald founded London-based Isembard in 2024 after careers in broadband and the army reserves. His company manufactures precision drone and satellite components to reduce European dependence on Chinese supply chains. August Lersen, a

European startups are aggressively pursuing acquisitions as IPO opportunities remain limited. VC-backed companies closed 95 M&A deals in September, the highest monthly count in over two years. Acqui-hiring drives significant activity. London AI recruitment firm Jack & Jill plans to buy talent-rich struggling companies, offering salaries up to £240,000 from its $20 million seed round. Milan-based Bending Spoons leads debt-fueled rollups. The decacorn acquired AOL, Vimeo, and E

Berlin-based strike drone maker Stark failed recent military demonstrations with UK and German forces, creating ripples across the defense industry. The Financial Times reported that Stark's attack drones missed every target during multiple tests. In one demonstration, Stark lost control of a drone that landed in the woods. Another test saw a drone battery catch fire. The mishaps occurred during four attempts with British forces in Kenya and German military near Munster last

Europe's top defense technology companies are establishing partnerships and attending defense exhibitions in Taiwan, signaling a shift in the European approach to the region's tense geopolitics. German drone manufacturer Quantum Systems, reportedly raising funds at a €3 billion valuation, signed a partnership with Taiwanese supplier Sysgration in September to localize drone production. The company exhibited at Taiwan's largest defense show alongside fellow German firm Helsing

The €1 billion NATO Innovation Fund hired Erin Hallock as a new partner following multiple senior departures. Hallock joins from BP Ventures, the investment arm of energy giant BP. At BP Ventures, Hallock managed investments in digital technologies and deep tech. NIF says her experience will support its focus on dual-use technologies serving both defense and civilian markets. NATO launched the fund in 2023 with backing from 24 allied nations. Countries invested through sovere

Defense startup founders are increasingly backing other companies in the sector with personal investments. The trend includes executives from companies like ARX Robotics and ICEYE. European defense startups pulled in hundreds of millions over the past year. Successful founders are now recycling capital into angel deals. One defense-focused VC told Sifted that founder angel activity is substantial, though many keep investments private. Florian Seibel cofounded Quantum Systems

Advanced manufacturing startup Divergent Technologies pulled in $290 million in fresh funding to grow its defense production capabilities. Rochefort Asset Management backed the round. According to a recent publication, the deal values Divergent at $2.3 billion, according to Bloomberg's initial report. Major defense players, including Lockheed Martin, RTX, and General Dynamics, buy components from the company. Divergent received $250 million in equity plus $40 million in debt

Lithuanian startup Unmanned Defense Systems makes military drones that have already seen combat use. The Vilnius company raised over €4.2 million after starting operations in 2022. The drone maker produces two main aircraft types. FORECASTER handles reconnaissance and intelligence gathering across battlefield zones. AVENGER 5 carries weapons for long-range precision attacks on enemy positions. According to a recent publication, UDS developed SwarmC2 software to control multip

London-based Roark Aerospace runs one of the largest worldwide drone detection and hyperspectral imaging networks. The defense company has raised roughly €57.6 million since its 2022 founding. According to a recent publication, Roark builds autonomous systems providing real-time battlefield awareness. The technology integrates sensors, counter-drone tools, and decision support into unified platforms deployable across land, air, and maritime operations. The product lineup incl

Riga-based Origin Robotics creates autonomous military systems for European forces and NATO partners. The defense startup has pulled in €8.5 million since its founding in 2022. Origin combines affordable hardware with sophisticated software to produce weapons that deploy quickly and adapt to changing battlefield conditions. The company prioritizes cost efficiency without sacrificing performance in its product design. According to a recent publication, BEAK represents Origin's

According to a recent publication, Military planners see 6G as the next evolution beyond current 5G networks. The technology promises faster speeds, lower latency, and greater capacity for edge computing applications that troops need in combat zones. Macklin spoke at Elastic's Public Sector Summit, an event produced by FedScoop. He explained that 6G introduces capabilities that many people don't fully understand yet. One experimental concept shows particular promise for milit