Why private investors are pouring billions into Europe’s defense tech sector

October 2, 2025

Venture capital investment in European deep tech defense, security and resilience startups has grown from $159 million in 2014 to $5.2 billion in 2024 – a 32-fold increase in just a decade, according to the NATO Innovation Fund. So, why are investors betting on European defense tech? And what more needs to be done for the sector to truly compete at a global level?