news from the defence startup space

The European defence technology sector has been a hotbed of activity in the past three months, with startups securing major funding rounds, landmark contracts, and forging strategic partnerships. From AI-powered intelligence to autonomous maritime systems, these emerging companies are increasingly at the forefront of the continent's strategic autonomy ambitions. Here are the top five news stories from March to June 2025 that are shaping the future of European defence.

1. French AI Darling 'Sentinel AI' Secures €150 Million in Series C Funding

In a landmark deal for European defence AI, Paris-based startup Sentinel AI has closed a €150 million Series C funding round. The round was led by a consortium of European venture capital firms and the NATO Innovation Fund. Sentinel AI specializes in developing AI-powered platforms for real-time intelligence analysis and predictive threat assessment. This significant injection of capital will be used to scale its technology and expand its team of data scientists and machine learning engineers, further integrating its solutions with allied armed forces.

2. Germany's 'Argus Cyber Defence' Awarded Major Contract for EU Cybersecurity

Berlin-based Argus Cyber Defence has been awarded a significant multi-year contract by the European Union Agency for Cybersecurity (ENISA) to bolster the cyber defences of the EU's critical infrastructure. The contract will see Argus deploy its next-generation threat detection and response platform across various EU institutions. This move highlights a growing trend of public-private partnerships to counter the rising threat of state-sponsored cyberattacks.

3. Sweden's 'Njord Dynamics' Unveils Autonomous Maritime Surveillance Drone

Gothenburg-based Njord Dynamics has unveiled its new long-endurance autonomous maritime surveillance drone, the "Valkyrie." Capable of operating for extended periods in harsh sea conditions, the Valkyrie is designed to provide persistent over-the-horizon intelligence, surveillance, and reconnaissance (ISR) for naval forces. The company has already secured a pilot program with the Swedish Navy, with several other NATO members expressing strong interest.

4. Spanish Startup 'Luz Dynamics' Achieves Breakthrough in Laser Communications

Madrid's Luz Dynamics, a deep-tech startup, has announced a major breakthrough in secure, high-bandwidth laser communication technology for satellite constellations. Their new system promises jam-proof, high-speed data transfer, a critical capability for next-generation military and dual-use space assets. This development has positioned Luz Dynamics as a key player in the burgeoning European space-defence ecosystem and has reportedly attracted the attention of major aerospace and defence contractors.

5. Pan-European Consortium including 'EuroDrone Systems' launch new heavy-lift drone project.

A newly formed pan-European consortium, including the German startup EuroDrone Systems, has announced the launch of a new heavy-lift, long-range drone project. The initiative, backed by a joint development fund from several European nations, aims to create a sovereign European capability for strategic airlift and logistics, reducing reliance on foreign-made platforms. EuroDrone Systems will be contributing its expertise in autonomous flight control systems and secure data links, marking a significant step for a startup to be centrally involved in a major European defence project.

Europe's Defence Tech Startups See Surge in Funding and Battlefield Deployment in Early 2025

The European defence technology landscape has been dramatically reshaped in the past three months, marked by a surge in venture capital funding, strategic acquisitions, and the battlefield deployment of cutting-edge technologies. Startups are increasingly at the forefront of innovation, driven by the ongoing conflict in Ukraine and a renewed sense of urgency among European nations to bolster their defence capabilities. Here are the top five news developments from the defence industry startups in Europe between March and June 2025.

1. Helsing's Triple Play: Secures Major AI Contracts, Acquires Aircraft Manufacturer, and Unveils Underwater AI

German AI defence startup Helsing has had a momentous quarter, solidifying its position as a European leader in the sector. In May, the Munich-based company announced it had secured a series of high-value contracts to provide its artificial intelligence-powered electronic warfare capabilities for the Eurofighter jet, in partnership with major European defence contractors.

Further demonstrating its ambition, Helsing acquired a German aircraft manufacturer in a strategic move to vertically integrate its AI software with hardware platforms. Capping off a busy period, the company also unveiled a new AI-powered cognitive sonar system for submarines, promising to significantly enhance underwater surveillance and anti-submarine warfare capabilities for European navies. This triple development underscores a significant scaling of European AI-native defence capabilities.

2. European Investment Fund Launches Dedicated Defence Tech Fund, Making First Investment

In a landmark move signaling a major shift in the continent's funding landscape, the European Investment Fund (EIF), backed by the European Union, launched its first-ever dedicated investment fund for defence technology startups in April. The €100 million "Defence Tech Facility" aims to bridge the funding gap for European companies developing dual-use technologies.

The fund's inaugural investment was in Keen Venture Partners, a new venture capital firm with a focus on early-stage defence and security startups. This development is seen as a crucial step in fostering a more robust and self-sufficient European defence industrial base, encouraging private investment in a sector that has historically been reliant on government grants.

3. Anduril's UK Contract for Ukraine Highlights Transatlantic Tech Bridge

While a US-based company, Anduril Industries has made significant inroads into the European defence market. In March, the company, which has a substantial and growing presence in the UK, secured a significant contract with the British Ministry of Defence to supply its autonomous systems to Ukraine.

The deal, focused on providing advanced counter-unmanned aerial system (C-UAS) technology and other autonomous capabilities, highlights the increasing integration of a transatlantic defence technology ecosystem. Anduril's success in securing European contracts for real-world conflict zones underscores the demand for battle-proven, rapidly deployable solutions that startups are often best positioned to provide.

4. NATO Innovation Fund Ramps Up Investments in European Startups

The NATO Innovation Fund (NIF), a €1 billion venture capital fund backed by 23 allied nations, has been actively deploying capital into European defence startups over the past three months. Notable investments include funding for Germany's ARX Robotics, which develops unmanned ground vehicles, and Portugal's Tekever, a provider of unmanned aerial systems for maritime surveillance.

Beyond direct investments, the NIF also launched new innovation challenges in May, calling on startups to develop solutions for critical areas such as secure communications and battlefield medicine. The NIF's activities are playing a vital role in fostering a network of innovative companies across the Alliance and directing private sector ingenuity towards pressing military needs.

5. European Startups at the Forefront of Counter-Drone Technology for Ukraine

The war in Ukraine has spurred a wave of innovation in counter-drone technology, with several European startups emerging as key players. Companies like Estonian Frankenburg Technologies and Swedish Nordic Air Defence have reportedly been developing and testing novel solutions to combat the threat of small, low-cost drones.

These startups are focusing on developing cost-effective and scalable systems that can be rapidly deployed to protect critical infrastructure and personnel. News from the past quarter indicates that some of these technologies are being trialed and refined based on direct feedback from the Ukrainian front lines, demonstrating a rapid innovation cycle and the direct impact of European startups on the modern battlefield.