In 2024, VC funding in European Deep Tech Defence, Security and Resilience (DSR) is at an all-time high, reaching a record $5.2 billion. The value is up 24% from last year and is up nearly 5x over the past six years. It has seen the strongest growth in the last two years (+30%), while the overall VC market declined 45%.
The NATO Innovation Fund and Dealroom have published a report on European Defence, Security, and Resilience in 2024. AIN shares key takeaways from the report, below.
General numbers
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In 2024, Defence, Security, and Resilience reached all-time high levels, securing a record $5.2 billion — 10% of all VC funding, up 2.5x over the past two years.
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Germany led in DSR funding in 2024, surpassing the UK, which remained the top recipient since 2019.
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France ranked second overall and third in 2024. Switzerland and the Netherlands have allocated the highest share of VC funding to the sector since 2019, exceeding 7%.
Rounds distribution
In 2024, the number of VC rounds (≥$1M) in European Deep Tech Defence, Security, and Resilience startups reached an all-time high of 276.
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The majority of deals were in the $1–4M (seed) and $4–15M (Series A) ranges, while larger rounds, including $40–100M (Series C), $100–250M, and $250M+ mega rounds, contributed to the overall growth.
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The DSR sector was the third fastest-growing last year and the fastest-growing over the last two years, surpassing most VC segments except Enterprise Software and Robotics, which were boosted by the AI boom.
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In 2024, 41% of VC funding in the European Defence, Security, and Resilience sector came from domestic investors, while 28% came from other European countries.
Notable European Defence, Security and Resilience investors
Images here and below: Dealroom report
Sector focus
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Defense drove sector growth, with VC funding for Awareness, Understanding, and Decision-Making startups reaching $1 billion in 2024. This is a 5x increase since 2020.
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Energy security and climate tech rebounded to over $900 million, fueled by advances in nuclear fission, fusion, and batteries.
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Investments in quantum technology and AI chips also surged, strengthening critical infrastructure protection.
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Europe leads in quantum and grid technology VC investments and remains strong in Earth Observation, In-space Operations, and Photonics. However, the region lags behind in AI chips and processors, launch vehicles, and humanoid robotics.
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VC funding for Awareness, Understanding, and Decision-Making nearly doubled in Europe in 2024, driven by growing interest in drones, UAVs, satellite imaging, and AI for defense.
