Venture capital investment in European defencetech startups has reached a record $7.4 billion in 2026 to date, nearly three times the $2.6 billion raised in 2025, according to a new report from Dealroom and Resilience Media. Dealroom forecasts a record $10.5 billion for the full year. Seven rounds of $1 billion or more, for Anduril, Helsing, Saronic, Shield AI, Quantum Systems, ICEYE and Castelion, account for more than 85% of this year’s funding.
Defencetech is now the fastest-growing major segment of European venture capital, accounting for 11.1% of the total and rising to 15% within the EU27. Startups in NATO Alliance countries have raised $27.1 billion in 2026, already 1.9 times the whole of 2025.
The investor base is widening fast. Dealroom identified 310 investors participating in at least one European defence deal this year and projects the full-year total will reach 620, up from 99 in 2020 and 387 in 2025. US investors now account for 47% of European defence tech funding, up from 12% in 2020. Germany leads national totals with $3.5 billion raised in 2026, and Munich, home to 4.1% of Europe’s VC-backed defence startups, accounts for 40% of the year’s funding.