European defence start-ups raise record US$7.4 billion in 2026
Large funding rounds account for more than 85 per cent of investment, while Germany leads European fundraising, a Dealroom and Resilience Media report says.
European defence technology start-ups have attracted US$7.4 billion in venture capital so far in 2026, according to a report by Dealroom and Resilience Media. That is a record and nearly three times the US$2.6 billion raised in 2025.
The report puts the sector’s share of European venture capital investment at 11.1 per cent, or 15 per cent within the EU’s 27 member states. Mega-rounds represent more than 85 per cent of funding, but investment in rounds ranging from US$15 million to US$100 million has also doubled from 2025 to a record level.
Germany tops the European funding rankings, with its start-ups raising US$3.5 billion in 2026, driven by Helsing, Quantum Systems and Stark. Munich accounts for 40 per cent of European defence venture funding this year, despite hosting only 4.1 per cent of the continent’s venture-backed defence start-ups.
Autonomous systems have drawn substantial investment. European drone start-ups received US$4.7 billion through 40 rounds in 2026. Anti-drone businesses attracted US$1.2 billion and maritime autonomous systems US$796 million; each of those latter categories exceeded its funding from all earlier years combined.
US investors account for 47 per cent of European defence technology funding, compared with 12 per cent in 2020. Dealroom identified 310 investors involved in at least one European defence deal so far in 2026 and forecasts a full-year count of 620, against 387 in 2025.
