European defence-tech startups reach record VC funding levels as investment momentum accelerates in 2025.

According to The State of Defence Tech 2025 report published by Dealroom in partnership with Resilience Media, European defence-technology startups have reached record levels of venture capital investment in 2025, marking a decisive shift in the continent’s defence innovation landscape. The report identifies Europe as one of the fastest-growing regions globally for defence-focused venture investment, driven by heightened security demands, policy alignment, and increased private-sector confidence.

The analysis shows that European defence-tech companies raised approximately USD 1.5 billion during 2025, with projections indicating that total funding could exceed USD 2.3 billion by year-end. This represents more than a doubling of annual investment compared to 2024, signalling a structural change in how defence innovation is financed across the region. Defence technology now accounts for a significantly larger share of overall European venture capital activity than at any point prior to 2020.

The report highlights artificial intelligence, autonomous systems, robotics, secure communications, and next-generation defence platforms as the leading investment segments, reflecting investor demand for scalable, software-driven and dual-use capabilities. It also notes a sharp increase in the number of dedicated defence-focused venture funds and institutional investors, indicating a maturing and more specialised capital ecosystem.

Despite this momentum, the report cautions that Europe still faces capability gaps in certain critical technologies compared to global peers, underlining the importance of sustained investment and industrial coordination. Overall, the findings confirm that European defence technology has entered a phase of long-term growth and strategic relevance, supported by both public policy direction and private capital engagement.

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