October 5, 2026
European defense technology companies recorded unprecedented levels during the year 2026, as they succeeded in raising about $7.4 billion in investment capital since the beginning of the year, achieving almost three times the total financing recorded during the entire year of 2025, which amounted to $2.6 billion, according to a recent report issued by the companies “Dealroom” and “Resilience Media.”
The defense sector now accounts for about 11% of the total venture capital investments in the Old Continent, driven by the growth of military spending and the escalation of the urgent need to develop advanced technologies, including drones, artificial intelligence, space technology, and cybersecurity, in addition to quantum technologies.
Major financing rounds worth more than $100 million accounted for more than 85% of the financing volume recorded this year. Prominent companies such as Helsing, Quantum Systems, and ICEYE topped the list of beneficiaries of the massive capital inflows. In the same context, American investors accounted for 47% of the total financing of European defense companies, compared to only 17% in 2020.
On the geographical level, Germany topped the European scene by registering about $3.5 billion in defense technology start-ups during the year 2026. Current estimates show the possibility of total European investments in the sector rising to about $10.5 billion by the end of the year, provided that the current investment momentum continues.
