European Defense Startup Funding Hits Record $8.7B in 2025
Defense, security, and resilience startups in Europe saw funding jump 55% year-over-year, with AI driving nearly half of it.
European defense tech is on a tear. Startup funding in the defense, security, and resilience sector surged 55% year-over-year to a record $8.7 billion in 2025, according to a joint report from Dealroom and the NATO Innovation Fund.
The biggest driver? Artificial intelligence, which accounted for 44% of all that capital. That's a massive signal about where defense money is flowing — straight into AI-powered solutions.
The data dropped ahead of the Munich Security Conference later this week, where defense tech is expected to dominate conversations. Europe's defense startup ecosystem has clearly shifted from niche to mainstream investment territory.
With geopolitical tensions showing no signs of cooling, the money pouring into this space suggests investors see defense tech as a durable bet, not a temporary spike.