Veterans reshape Europe's defense tech as record funding fuels innovation

Friday 05 September 2025 - 11:20

By: Dakir Madiha

Veterans reshape Europe's defense tech as record funding fuels innovation

A new wave of innovation is transforming Europe’s defense technology landscape, driven by a generation of former soldiers who are leveraging their military expertise to create multibillion-dollar enterprises. This surge comes as European nations accelerate rearmament efforts following Russia's invasion of Ukraine. Today, military veterans lead around 25% of the more than 80 defense startups across Europe, combining battlefield knowledge with cutting-edge technological development. Venture capital investment in European defense technology has also reached unprecedented levels, underscoring this rapid transformation.

Veterans lead the charge in defense innovation

Former military personnel are increasingly pivotal in reshaping Europe’s defense industry. Florian Seibel, a former German Armed Forces helicopter pilot with 16 years of service, co-founded Quantum Systems in 2015. The Munich-based drone manufacturer achieved unicorn status in 2025 with a valuation surpassing €1 billion after raising €160 million in Series C funding.

Similarly, ARX Robotics, co-founded by three former German army officers, has emerged as a leader in autonomous ground systems. The company recently launched Europe’s largest defense robotics facility, scaled production thirtyfold in six months, and executed the largest deployment of Western-designed unmanned ground vehicles in Ukraine.

Other notable startups led by veterans include CybSafe, established by former British special forces officer Oz Alashe, and BlinkTroll, founded by ex-Norwegian soldiers specializing in military training equipment. The relatively low barriers to entry for drone technology, compared to traditional defense systems such as fighter jets, have accelerated the rise of these innovative companies.

Record-breaking investments boost growth

European defense tech funding reached a record €946.3 million in the first half of 2025—up 26% from the same period in 2024. Annual investments in 2024 hit $5.2 billion, a 500% surge from pre-war levels.

Helsing, a German AI-focused defense startup, secured 2025’s largest funding round in Europe, raising €600 million in Series D financing. This propelled its valuation to €12 billion, making it one of Europe’s highest-valued private companies. The investment round was led by Prima Materia, the venture fund of Spotify CEO Daniel Ek.

Institutional support is also growing. NATO’s €1 billion Innovation Fund, backed by 24 member nations, highlights the alliance’s commitment to fostering defense tech. Meanwhile, venture capital firms are increasingly recruiting veterans to capitalize on their unique battlefield insights.

Ukraine war accelerates innovation

The conflict in Ukraine has significantly compressed defense development timelines, shrinking them from years to mere months. Veteran-led startups are rapidly adapting their products based on frontline feedback to meet urgent demands.

For example, Francisco Serra-Martins, a former Australian combat engineer and co-founder of Ukraine-based Terminal Autonomy, noted that veterans understand battlefield gaps and can distinguish practical solutions from flashy but ineffective technologies. Ukraine has become a testing ground for defense innovations, with over 500 startups emerging since the war began. Many deliver their products directly to the frontlines, ensuring their technologies are battle-tested rather than confined to theoretical lab environments.

Strategic implications

This defense tech revolution aligns with NATO’s commitment to allocate 5% of GDP to defense and security by 2035, more than double the current 2% target. In 2024, EU defense spending reached €343 billion, up 19% from 2023, with projections hitting €381 billion in 2025.

Emmanuel Jacob, president of the European Organization of Military Associations and Trade Unions, highlighted the unprecedented influx of long-serving soldiers into defense startups. He attributed this trend to the urgency of current conflicts and record-breaking investment levels. This movement not only addresses immediate security needs but also positions Europe as a leader in defense innovation.