What are the VC investments in Defence startups in Europe?
Portugal news – Dealroom just published “The State of Defence Investment 2024” report for resilience builders in NATO and Europe. What are the VC investments in Defence startups in Europe?
The report publishes the Europe sovereignty index for Defence that evaluates countries' capabilities based on defence spending, troop deployments in joint missions, membership and contributions to military alliances, industrial cooperation, and military equipment.
According to the Europe sovereignty index for Defence in 2022, the average score in Europe is: Overall 5.9, Commitments 6.8, and Capabilities 5.0.
According to the Europe sovereignty index for Defence in 2022, the average score for Portugal is below the EU average with: Overall 4.7, Commitments 5.2, and Capabilities 4.1.
At the time of the Ukraine invasion by Russia, most of the EU was underspending in respect to NATO commitments, now this is quickly changing and EU countries announced a ramp-up of defence plans.
While the EU spent € 240 billion on defence in 2023, with € 58 billion on tech and innovation, Poland doubled its defence budget since 2014 to reach 3.8% of GDP in 2023. Germany allocated €100 billion in 2022 for cyber-defence and AI, while Sweden, Lithuania, and Finland increased defence spending in 2022 to counter Russian threats: Sweden by 30.1%, Lithuania by 27.6%, and Finland by 36%.
What are the VC investments in Defence startups in Europe?
The Top European countries for VC investment in defence startups since 2018 are: Germany, United Kingdom, and France, that attracted 87% of the total VC investment into defence tech in Europe since 2018.
While Munich is the city that has attracted the most VC funding in defence startups in Europe driven by Helsing, 6 of the Top 10 European cities for defence tech investment are in the UK.
The Top 10 investors in defence and defence application among NATO allies are mostly made up of US investors who also account for a large share of the funding flowing into European defence tech.
What are the VC investments in Cybersecurity startups in Europe?
For cybersecurity investments in Europe, 2024 is projected to be the third most active year, falling just slightly short of the 2021-2022 peak. Cybersecurity VC funding in NATO allies peaked in 2021 at over $21B, then dropped 70%, but 2024 is set to see a slight bounce back.
Here are the Top 10 Investors in cybersecurity among NATO countries and allies since 2023:
