What do AI and drones have in common? They drive European defence tech, and their potential is boundless. According to a recent Dealroom report, VC investments in this sector have grown fivefold since 2018, outpacing NATO investment growth by 25% and projected to reach $1 billion in 2024.
Three nations dominate, capturing 87% of investment since 2018: Germany, the UK, and France. Munich leads European cities, boosted by Helsing’s recent $487 million raise. The city’s prominence grew when Enginsight and ASOFTNET launched Europe’s first AI DEFENSE CENTER in October, focusing on proactive cybersecurity and continuous optimisation.
Bristol and Paris follow as major defence tech hubs. Meanwhile, dual-use startups — developing technology for civilian and military applications — are gaining momentum. Here are the key players shaping this trend in 2024:
Helsing
Founders: Founders: Dr. Gundbert Scherf, Niklas Köhler, and Torsten Reil Founded year: 2021
Total funding: $838M
Helsing is a Munich-based startup in defence AI. It was co-founded by Dr Gundbert Scherf, who has aerospace and defence experience from McKinsey & Company and the German Federal Ministry of Defense, along with Niklas Köhler and Torsten Reil, who have extensive AI and technology experience.
Helsing.ai’s mission is to achieve technological leadership and safeguard democratic societies. The company serves governments and industry partners, integrating advanced AI into existing hardware. This enhances defence forces’ effectiveness, providing a strong shield against external threats to democracies.
Helsing collaborates with Schönhofer Sales and Engineering GmbH and IBM to develop the Future Combat Air System (FCAS) AI backbone. This platform is crucial for integrating AI into next-gen combat systems and enhancing capabilities like sensor data evaluation, mission planning, and effectors. Helsing’s technology is incorporated into the Eurofighter Typhoon, one of the world’s most advanced multi-role aircraft, to boost its operational effectiveness and adaptability in modern combat.
In July 2024, Helsing raised €450 million in Series C funding from investors like Accel, Lightspeed Venture Partners, General Catalyst Partners, Greenoaks Capital Partners, Saab Automobile, Elad Gil, and Plural.
Preligens
Founders: Arnaud Guérin and Renaud Allioux Founded year: 2016
Total funding: $242M
Prelingens, a pioneer in defence-oriented AI, emerged from Paris’s innovation ecosystem under its original name, Earthclub. The company is a leading provider of AI-powered geospatial monitoring solutions that transform operational decision-making in the defence and intelligence sectors.
Prelinges’ technological prowess lies in its analysis of geospatial intelligence (GEOINT) and multi-intelligence (MULTIINT) data streams. The company’s flagship offerings — ZEBRA AI mapping and TAIIA — represent cutting-edge solutions for accelerating the intelligence cycle. These platforms integrate advanced detectors with powerful vectorisation capabilities, setting new automated surveillance and analysis standards.
Safran was attracted by the company’s innovative approach and strategic value, leading to its acquisition in June 2024 in a €220 million deal.
ARX Robotics
Founders: Marc Wietfeld, Stefan Röbel, and Maximilian Wied Founded year: 2021 Total funding: $11.2M
ARX Robotics, a strategic spin-off from the German Armed Forces, was founded in Munich by Marc Wietfeld, Stefan Röbel, and Maximilian Wied. The company leads autonomous unmanned ground systems, creating advanced modular platforms and sensor solutions for defence and commercial use.
ARX’s highly adaptable platforms allow quick, tool-free module exchanges for various applications, from logistics and evacuation to surveillance and training. The Autonomy Kit uses AI and sensor fusion for advanced capabilities, including real-time data processing and decision-making — essential for military and commercial operations. The Gereon series offers platforms like the ATR for training and simulation and the RCS for operational needs like MedEvac support and sensor deployment.
In June 2024, ARX secured €9.0m seed funding from Project A, Discovery Ventures, and NATO Innovation Fund (NIF). This investment will expand the team and scale production across Europe, strengthening European technological sovereignty and resilience.
Origin
Founders: Agris Kipurs and Ilja Nevdahs Founded year: 2022
Total funding: $4.4M
Origin, founded in 2022 in Riga by Agris Kipurs and Ilja Nevdahs, develops advanced robotic solutions for various industries, leveraging cutting-edge technology to improve automation and efficiency. Origin Robotics specialises in creating versatile systems that are adaptable to multiple applications.
Their technology uses advanced AI and machine learning to improve the precision and reliability of automated manufacturing, logistics, and healthcare processes, assisting with tasks from assembly line automation to patient care.
In October 2024, Origin raised €2.4 million from Change Ventures and Silicon Roundabout Ventures in a seed round and secured a €1.6 million grant from the European Innovation Council. This funding will support further development and scaling of their robotic solutions.
Avalor AI
Founders: Raanan Raz and Kfir Tishbi
Founded year: 2021
Total funding: $2.2M
Avalor AI develops data fabric solutions for enterprise security. The company, co-founded by Raanan Raz and Kfir Tishbi, integrates and streamlines security data, enhancing decision-making and operational efficiency.
The company’s technology is a single source of truth for cybersecurity assets, controls, identities, vulnerabilities, bugs, and other data points. This enables security teams to aggregate, normalise, deduplicate, and track risk data from discovery to remediation. Its unique vulnerability risk management and prioritisation tools distinguish it in the industry.
In June 2024, Avalor AI secured a €2 million seed round from Keen Venture Partners to develop innovative solutions and expand its market presence.
Broswarm
Founders: Ernestas Žvaigždinas, Karolis Žvaigždinas, and Mindaugas Talaikis Founded year: 2023
Total funding: $980K
Vilnius-based startup Broswarm, co-founded by Ernestas Žvaigždinas, Karolis Žvaigždinas, and Mindaugas Talaikis, is making significant strides in mine detection. Their flagship product, the X-Ray Eagle, uses radio waves to detect small buried objects and produce 3D visuals, setting a new standard for precision. Broswarm’s technology has earned recognition, winning first place at the NATO Innovation Challenge.
The X-ray Eagle sensor enhances mine detection by providing clear 3D visualisations up to 10 meters above ground. When mounted on drones, it can detect items up to 0.5 meters deep—a significant improvement over traditional technology. This capability reduces false positives and provides reliable visual data, enabling faster and more effective mine clearance operations.
In early November 2024, Broswarm secured €800,000 in venture funding from ScaleWolf, a dual-use VC and accelerator. The company’s collaboration with the Lithuanian Ministry of Defence and the support from the NATO Innovation Fund, which recognized Broswarm’s technology with a first-place win, highlight the importance of public-private partnerships in advancing defence technology. This funding will boost R&D efforts and patenting as Broswarm prepares to field-test the X-Ray Eagle and expand its deployment in conflict zones.
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