^{Photo: Sweden Herald}

Helsing Raises $694 Million as Defense Tech Funding Soars

European defense technology startup Helsing has secured a massive $694 million (600 million euro) investment round, reinforcing its position as one of Europe’s most promising military AI companies. The round was led by Prima Materia, the venture capital firm founded by Spotify CEO Daniel Ek, marking one of the largest single investments into European defense technology in recent years.

Joining Prima Materia were major existing backers including Lightspeed Venture Partners, Accel, Plural, General Catalyst, Saab, along with new heavyweight investor BDT & MSD Partners. This latest influx of capital highlights the rapidly growing investor interest in defense startups amid a backdrop of rising geopolitical tensions and increasing military spending across Europe.

The Geopolitical Backdrop Driving Defense Tech Demand

Defense technology has emerged as one of the hottest sectors for venture capital as ongoing global conflicts continue to reshape military priorities. The ongoing Ukraine-Russia war has significantly accelerated defense spending across Europe, while the escalation of hostilities in the Middle East, including recent Israeli airstrikes against Iran, has further intensified the urgency to modernize defense capabilities.

According to a recent report by the NATO Innovation Fund, total venture funding into Europe’s defense, security, and resilience sectors reached an all-time high of $5.2 billion in 2024. This represents a 30% growth over the past two years, a sharp contrast to the broader European venture capital market, which has seen a 45% decline in overall funding during the same period.

"Defense technology is no longer a niche sector — it's becoming a core part of Europe's innovation ecosystem," noted the report.

Helsing’s Rapid Rise in the Defense AI Sector

Founded in 2021, Helsing specializes in developing software that uses advanced artificial intelligence (AI) to analyze real-time battlefield data, offering militaries enhanced situational awareness and decision-making capabilities. Its platform processes massive volumes of sensor data, including imagery, radar, and weapons systems data, to provide real-time operational insights for commanders.

Beyond software, Helsing has also moved into hardware production. In 2023, the company introduced its own line of military-grade autonomous drones — branded the HX-2 series — designed for surveillance, reconnaissance, and tactical support missions. These drones have already undergone limited field trials with several European defense forces.

Currently, Helsing operates in Germany, the United Kingdom, and France, positioning itself at the center of Europe’s growing defense tech ecosystem. The company works closely with both national governments and NATO allies to support the continent’s push toward greater technological sovereignty.

European Technological Sovereignty at the Core of Helsing’s Mission

The newly raised funds will primarily support Helsing’s mission to bolster Europe’s technological sovereignty — a growing priority among European policymakers aiming to reduce reliance on foreign suppliers for critical defense technologies such as AI, autonomous systems, and battlefield data analytics.

“As Europe rapidly strengthens its defense capabilities in response to evolving geopolitical challenges, there is an urgent need for investments in advanced technologies that ensure its strategic autonomy and security readiness,” Daniel Ek stated following the investment announcement.

The company’s focus on onshoring sensitive AI development aligns with broader European Commission initiatives that emphasize strategic independence in emerging defense sectors. Several EU defense ministers have repeatedly voiced concerns over Europe’s heavy reliance on U.S. and Asian defense suppliers for both hardware and software.

Previous Valuation and Future Outlook

Helsing did not disclose its new valuation following this funding round, which remains subject to certain regulatory approvals. However, based on its previous 5 billion euro valuation during its 450 million euro funding round in 2023, industry analysts estimate Helsing’s valuation could now approach or exceed 7 billion euros, depending on the valuation multiples applied.

With growing orders, expanded R&D, and a rapidly evolving geopolitical landscape, Helsing is positioning itself to become a flagship player not just in Europe, but globally in the AI-driven defense sector.

Defense Tech: A New Frontier for Venture Capital

The Helsing deal underscores a broader shift where investors are increasingly willing to fund defense startups, a sector that was once largely avoided by mainstream venture capital due to ethical concerns or regulatory complexities. However, as government demand surges and public sentiment shifts in light of ongoing global security crises, defense technology is now viewed as both a lucrative and strategically critical investment domain.

According to data from PitchBook, the global defense technology market is projected to surpass $150 billion in annual spending by 2030, with AI, autonomous systems, and battlefield analytics being the fastest-growing sub-segments.

"Helsing represents the new wave of European defense startups — highly specialized, technologically advanced, and mission-critical for the continent’s future security posture," said Mark Spelman, senior defense analyst at NATO’s Emerging Tech Division.

Helsing’s Expansion Reflects a Broader Industry Transformation

Helsing’s latest funding round not only provides it with the capital to scale but also sends a strong signal about how venture capital is increasingly intertwining with defense and national security priorities. With Daniel Ek at the helm of its lead investor, Helsing is now poised to help redefine Europe’s defense industry as nations seek homegrown solutions to unprecedented geopolitical instability.

As Europe faces increasing external threats, investments like these may prove critical in ensuring the continent’s long-term strategic autonomy and ability to defend itself with cutting-edge technologies developed on its own soil.