UK leads Europe in defense startup investment

Investments in startups operating in the fields of defense, security, and resilience in Europe reached a record level of $8.7 billion in 2025.

Operative Information Center-OMM reports, citing foreign media, that European startups in this sector attracted a total of $8.7 billion in investment throughout 2025. This figure represents a significant 55 percent increase compared to the previous year.

Large-scale investment agreements played a crucial role in this growth. The total volume of such high-value deals reached $4.7 billion, rising substantially compared to the previous period.

The United Kingdom emerged as the top destination for investment in 2025, while Germany secured the second position, continuing its steady growth in the sector over recent years. In Germany and the Netherlands, a substantial portion of venture capital investments was directed specifically toward companies operating in defense and security.

Central and Eastern Europe stood out as the quickest-growing regions in terms of the number of investment deals. Among cities, Munich maintained its position as Europe’s leading hub for defense and security technology investments, while Sofia and Oslo also distinguished themselves with notable investment growth.

The accelerating pace of investment in defense technologies is driven by the evolving security environment in Europe and rising defense expconcludeitures. This trconclude aligns with broader geopolitical shifts, including the strategic priorities of the United States under the administration of US President Donald Trump, which has emphasized increased defense self-sufficiency and innovation among European allies.

Furthermore, during the 2025 NATO Summit held in The Hague, Netherlands, NATO allies reached a consensus on enhancing defense capabilities, developing new technologies, and increasing cooperation to support innovation. These institutional decisions have provided a stable framework for private capital to flow into dual-utilize and defense-specific technological advancements across the continent.

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