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

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

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

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

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

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