A major European investment summit last week brought together venture capitalists, limited partners, and startup founders to discuss current market trends. Three topics dominated conversations: artificial intelligence, defense technology, and how European and American venture markets compare. Investors reported that European AI startups at seed and pre-seed stages are negotiating better deal terms than before. Founders now give up only 10 to 15 percent equity in early rounds.

Investors are pivoting from attack drone makers to companies building systems that stop them. Europe's venture capital community now sees counter-drone and air defense technology as a serious opportunity. Ukraine's war demonstrated how devastating drone attacks can be. Governments across Europe are reassessing their defensive capabilities. Even peaceful nations have experienced unexplained drone activity near critical sites. Detecting and destroying hostile drones matters mor

Berlin-based drone company Stark appointed investor Uwe Horstmann as its new Chief Executive Officer following a $62 million funding round. The company produces unmanned aerial systems for defense applications. Horstmann previously served as general partner at Project A Ventures, which backed Stark before his operational role. Moving from investor to operator signals Stark's growing ambitions in the defense tech and unmanned systems sector. Project A participated in the fund

Italy's defense contractors are finally opening doors to startup collaboration after years of limited engagement. Major players like Leonardo and Fincantieri are beginning serious discussions with young technology companies. Founders and investors report securing initial meetings, pilot programs, and technical partnerships that previously seemed impossible. The Ukraine war and Europe's security focus have pushed traditional defense firms to seek fresh innovation sources. Ital

Quantum Systems is reportedly close to raising approximately €200 million in fresh capital. The German drone manufacturer's growth represents a significant milestone for European defense technology and autonomous aerial systems. Balderton Capital will lead the investment after previously backing Quantum in May 2025. The venture firm is substantially increasing its stake in the company. European governments are aggressively building domestic capabilities in dual-use technologi

Klaus Hommels spent over twenty years building Lakestar into a major European venture capital firm. His portfolio covers fintech, software, AI, and deep tech. Now he's entering European defense technology despite its controversial nature. Defense tech was previously considered niche or ethically problematic. Russia's Ukraine invasion completely changed that perception. Europe discovered heavy dependence on foreign military technology, especially from America. Hommels position

AI startup PhysicsX secured a $20 million funding extension from Nvidia, with rights for the chip giant to invest up to $80 million more in the next round. The deal continues Nvidia's aggressive European startup investment strategy. PhysicsX builds AI software that rapidly designs components for manufacturing projects across defense, aerospace, and other industries. The London-based company has become one of Europe's most talked-about startups recently. The company announced

Toulouse-based Infinite Orbits secured €40 million to fund European expansion. The space technology company builds systems for servicing satellites already in orbit. German venture firm Matterwave Ventures and French investor Wind Capital led the round. The European Innovation Council Fund participated along with multiple European backers, including IRDI and Newfund from France, plus Poland's Balnord. About €10 million came through debt financing. Infinite Orbits plans to est

Paris-based Orasio builds artificial intelligence systems that analyze video feeds for public and private security clients. The company launched in 2025 and has already secured €16 million in funding. Orasio's platform converts live video streams into immediate actionable intelligence. The system flags anomalies, suspicious activity, and safety risks while maintaining privacy protections under GDPR and EU AI Act requirements. According to a recent publication, applications sp

French company NEXSTUN makes non-lethal equipment for police and personal security applications. The Mauguio-based startup raised €45 million three months ago after launching in 2021. The E-Stunglove represents NEXSTUN's primary product. This patented electric impulse glove helps users control dangerous situations at close range without inflicting permanent damage. The lightweight portable device delivers controlled electric discharge to temporarily immobilize subjects. Accor

Berlin-based Helsing creates artificial intelligence systems for military operations spanning land, air, sea, and underwater environments. The defense tech company has raised roughly €1.36 billion since its 2021 founding. Helsing produces software that integrates with current and future military hardware. The technology helps armed forces identify threats, coordinate responses, and execute targeting through autonomous capabilities. The product portfolio covers AI-powered dron

Delian Alliance Industries operates out of London, developing autonomous military technology for Europe and partner nations. The defense startup has raised €7.1 million since launching in 2021. The company creates integrated hardware and software systems for military and civil protection applications. Delian's technology aims to give defense forces more adaptable and affordable operational capabilities. Electronic warfare, surveillance, GPS-independent navigation, and AI comm

Comand AI, a Paris defense tech startup, develops artificial intelligence software for military command and control operations. The company has secured €11.5 million in funding since its 2023 founding. The firm's main product is Prevail, a platform built to enhance how armed forces make tactical decisions. The software combines battlefield data feeds, AI simulation tools, and mission planning capabilities into one system. According to a recent publication, Prevail helps milit

Joby Aviation announced Thursday a new partnership with L3Harris Technologies to build autonomous aircraft for defense customers. The collaboration targets the development of a gas-turbine hybrid vertical takeoff and landing system. Most people know Joby as an air taxi developer, but the publicly traded company maintains deep Pentagon ties. Years of military research work are now producing tangible results. The partners will explore creating a new aircraft category built arou

Firefly Aerospace is spending $855 million to buy SciTec, a defense analytics company based in Princeton. The aerospace firm announced the deal on Sunday. The purchase price includes $300 million in cash and $555 million in Firefly shares. Closing is expected sometime before 2026 arrives. SciTec makes money selling missile detection equipment and space monitoring systems to military customers. The company pulls in about $164 million annually. Space Force recently gave SciTec

Arondite, a London defense tech startup, builds software and AI systems that support autonomous military technologies. The company launched in 2023 and has now raised approximately €10.5 million. The firm focuses on making robotic and autonomous defense systems work together effectively. Military and security forces face challenges in managing massive amounts of battlefield data and hardware. Arondite's platform helps solve these interoperability problems. According to a rece

Avalor AI, an Amsterdam defense tech company, builds artificial intelligence for autonomous military operations. The startup launched in 2021 and has raised €2 million to date. The company's flagship product is called Nexus. This platform gives unmanned vehicles the ability to plan and execute missions across air, land, and sea environments. These systems operate with minimal human supervision once deployed. According to a recent publication, Nexus handles real-world battlefi