Defense tech funding just reached a new high. Defense tech startups have raised almost $3 billion so far in 2024, according to Crunchbase. This surpassed the previous record from 2022 of $2.6 billion.
It’s an impressive feat, especially considering the number of deals has shrunk: in 2022, there were 113 defense tech rounds, outpacing 2024’s 85 rounds.
The record is buoyed by a few monster rounds this year, like weapons manufacturer Anduril, which raised a $1.5 billion Series F in August and Saronic Technologies, an autonomous maritime vehicle company founded by Anduril alumni, which raised a $175 million Series B this year. Additionally, defense infrastructure startup Chaos Industries raised a $145 million Series B this month.
Europe’s defense tech scene has grown by leaps and bounds this year as well. German AI weapons startup Helsing raised a whopping about $487 million this year. And PitchBook reports a spike in new Europe-based defense tech venture firms, like Ukrainian D3 Venture Capital, Lithuanian Scalewolf, and British Twin Track Ventures.
“We are living in an increasingly dangerous world,” said Mikolaj Firlej, general partner of Europe-based Expeditions Fund, to PitchBook. “Many are now feeling a sense of urgency and mission to use money and networks to invest in early-stage companies that could move the needle and help protect us.”
The defense tech boom shows no sign of abating: defense investors and founders are reportedly expecting the new White House administration to provide even more opportunities for startups offering new technologies in everything from space and aeronautics to weapons and surveillance tech.
“The close relationships between [vice president-elect] Vance, Elon and the defense VC and startup ecosystem will create a huge opening for real defense acquisition reform and widening of the number of players,” Nathan Mintz, cofounder of electronic warfare startup CX2, told Forbes.
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