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Helsing Secures $694 Million as Defense Tech Becomes a Prime Target for Investors

European defense technology company Helsing announced Tuesday that it has successfully raised 600 million euros ($693.6 million) in a major new funding round, further cementing its position as a rising force in AI-powered military solutions.

The round was led by Prima Materia, the venture capital firm founded by Spotify CEO Daniel Ek and Shakil Khan, one of Spotify’s earliest investors. This marks one of the largest single private defense tech investments in Europe’s recent history and reflects a growing appetite among investors for companies operating at the intersection of artificial intelligence, defense, and security.

Existing backers — including Lightspeed Venture Partners, Accel, Plural, General Catalyst, and Swedish aerospace and defense firm Saab — participated alongside new investors BDT & MSD Partners. Helsing has now become one of the best-funded defense startups globally, after previously raising 450 million euros in a 2023 round led by General Catalyst, which valued the company at approximately 5 billion euros at that time. Its new valuation following this latest round remains undisclosed but is expected to exceed that figure substantially, pending regulatory approvals.

Defense Tech’s Investment Boom Amid Global Tensions

The surge in funding reflects a broader trend in venture capital as geopolitical instability, including Russia’s war on Ukraine and escalating conflict in the Middle East, drives nations to seek cutting-edge defense capabilities.

According to data from the NATO Innovation Fund, venture capital investment into Europe’s defense, security, and resilience sectors reached a record $5.2 billion in 2024 — a staggering 30% increase over the past two years. This growth stands in stark contrast to the broader European venture capital market, which has shrunk by 45% over the same period.

“Defense technology has shifted from a niche sector to one of the most aggressively expanding segments in venture capital,” said a NATO Innovation Fund analyst. “The combination of AI advancements and rising national security concerns is rewriting the playbook.”

Helsing: AI-Powered Defense Intelligence

Founded in 2021, Helsing develops software that uses advanced artificial intelligence algorithms to process vast streams of data collected from sensors, surveillance equipment, drones, and weapons systems on active battlefields. Its software provides real-time analysis, enabling military commanders to make faster, more informed tactical decisions.

Beyond its software capabilities, Helsing entered the hardware space last year with the launch of its proprietary HX-2 military drones, designed for reconnaissance and rapid response missions. These drones have positioned Helsing as not only a software intelligence provider but also a hardware manufacturer capable of delivering comprehensive defense solutions.

The company currently operates in Germany, France, and the United Kingdom, serving several European defense agencies and security partners.

Strengthening Europe’s Technological Sovereignty

The new capital injection will be used to strengthen Europe's defense autonomy by investing in homegrown technologies that reduce reliance on non-European suppliers for critical defense infrastructure.

“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 said in a public statement on Tuesday.

This sentiment echoes growing European efforts to bolster "technological sovereignty", a term increasingly used by EU leaders to stress the importance of controlling key technologies — especially in sensitive fields such as AI, cybersecurity, and defense manufacturing — within the continent’s own borders.

Global Defense Industry Entering a New Phase

Helsing's success highlights a broader transformation underway in the defense industry. Private capital is flowing into defense startups at unprecedented levels as conflicts like Ukraine and Gaza underscore the importance of modernizing military capabilities.

In fact, analysts predict that global defense budgets will grow by an estimated 5.4% annually through 2030, according to a recent report from McKinsey & Company, with AI-powered systems becoming increasingly central to future warfare.

"Artificial intelligence is not just another tool — it's becoming a critical pillar of 21st-century defense strategy," said McKinsey senior partner Anders Johansson. "Companies like Helsing are positioning themselves at the heart of that shift."

Regulatory Approvals Still Pending

While Helsing’s funding round represents a major milestone, the firm noted that the financing remains subject to final approvals from various European regulatory authorities due to the sensitive nature of defense technologies and cross-border investments.

Should those approvals clear without issue, Helsing is expected to significantly expand its workforce, R&D operations, and manufacturing capacity over the next 24 months.