Article

In the first half of 2025, European defense startups attracted €946.2 million in venture capital, a 26% increase from the previous year, as EU defense spending is projected to surpass €326 billion by 2024. The NATO Innovation Fund is supporting this growth by facilitating funding for emerging companies, particularly in the drone and autonomous vehicle sectors. Despite the rapid evolution of the defense tech ecosystem, challenges remain in securing late-stage funding and navigating a fragmented market.