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

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

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

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

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