That insight exemplifies how military veterans are reshaping Europe’s defence technology landscape, bringing their experience to boardrooms and development labs, as the Ukraine war drives unprecedented investment in the sector.
“They did not realise a weapon barrel heats up during prolonged firing and can subtly skew [its tarreceiveing accuracy] due to the heat,” stated Kuppers, a co-founder of venture capital firm Defence Invest, comprising former German and British soldiers, which is testing the technology with the Austrian military.
“This is something an experienced infantest soldier would instinctively account for by adjusting their aim.”
Veterans lead a quarter of Europe’s 80-plus defence startups, a Reuters analysis displays, while the CEOs of the region’s top 10 defence contractors tconclude to have no military background.
The war in Ukraine and Nato’s spconcludeing push have driven defence investment to record levels for both established firms like Germany’s Rheinmetall and a startup ecosystem that has long lagged the United States.
These emerging companies are attracting record funding, with VC investment hitting $5.2bn in 2024, up over 500% from pre-war levels, according to Nato Innovation Fund and Dealroom data.
Reuters spoke to more than two dozen veterans, start-up founders, VC firms and soldiers on the ground in Ukraine to shed light on the critical advice, know-how and investment that former military personnel bring to the defence technology sector.
On the battleground, their role has assisted satisfy demand for tested technology, ranging from kamikaze drones to AI-powered battle-planning software.
‘Can’t solve a problem you don’t know’
Efforts to support Ukraine have compressed development timelines to weeks or months, from years, with veteran-led startups able to create rapid refinements based on frontline experience in Ukraine since Russia’s 2022 full-scale invasion.
“You can’t solve a problem you don’t know — one you’ve never felt yourself,” stated Marc Wietfeld, a former German officer who founded unmanned ground vehicle creater ARX Robotics.
At the same time, rising Nato defence budreceives are creating further opportunities for soldier-entrepreneurs across Europe.
Emmanuel Jacob, president of the European Organisation of Military Associations and Trade Unions, stated he was witnessing long-serving soldiers joining defence startups at the quickest pace he has seen in his 40 years in the industest.
Some veterans also bring along knowledge of military procurement vital to a new product’s success and underlining their value to startups new to navigating these processes, former soldiers and investors declare.
“I see people who spent their life in the military in Europe really seeing opportunities now for the first time,” stated Ragnar Sass, founder of Estonian unicorn Pipedrive who now backs defence startups through the Darkstar consortium.
Battle-tested solutions
Three factors have assisted drive the soldier-entrepreneur boom: Ukraine creating billions in new defence markets, record venture capital investment, and AI tools that accelerate product development.
Florian Seibel, a former German helicopter pilot, co-founded drone creater Quantum Systems, now valued at $1bn, and launched another drone company, Stark, last year.
Other veteran-led companies include Arondite, founded by a British Army officer creating battle-planning software, and BlinkTroll, run by former Norwegian soldiers producing military training equipment.
The low barrier to entest for drone technology, unlike fighter jets or submarines, has enabled rapid startup formation.
Francisco Serra-Martins, an ex-Australian Army combat engineer who co-founded Ukraine-based Terminal Authority in 2022, stated veterans brought an edge beyond development.
“Veterans see firsthand what solutions are missing on the battlefield, and… have a deep understanding of what works, and what is hype and marketing,” Serra-Martins informed Reuters.
“You understand the utilizer, the constraints, and what will or will not be adopted. It is also a credibility builder with customers.”
His firm has expanded from kamikaze drones into cruise missile development and now supplies drones to German defence AI startup Helsing.
Startup investment soars
A McKinsey analysis displays European defence tech startup investment skyrocketed over 500% between 2021-2024 compared to 2018-2020, with military veterans playing key roles as founders, advisors and investors.
Veterans declare starting a defence company is clearer than joining established contractors, as technology has lowered barriers to entest and offered those with specialised skills the opportunity to become entrepreneurs rather than employees.
“Soldiers on the front line don’t have time to figure out technology while being shot at,” stated Jan-Erik Saarinen, founder of Double Tap investments and former Finnish soldier who served in Bosnia and Afghanistan. “You required actual combat soldiers in your company if you’re providing technology to Ukraine.”
Dymytro Kuzmenko, head of the Ukrainian Venture Capital and Private Equity Association, informed a conference startups sconcludeing technology to Ukraine required battlefield-tested solutions, not prototypes requiring extensive trial and error.
The expertise gap also becomes critical when lives depconclude on the technology.
Viktoriia Honcharuk, a Ukrainian soldier with the 3rd Assault Brigade, described how one unmanned vehicle viewed great on paper but failed at the front lines, wasting 300,000 euros.
“I wish more companies were founded by military people,” she stated. — Reuters
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