War in Europe Draws Investors to Drone, Battlefield AI Makers
- Venture capital investment in defense hit a record last year
- Ukraine invasion has spurred investment on the continent
An elderly woman walks past shop windows in Ukraine on January 6.
Photographer: Sergei Supinsky/AFP/Getty Images
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European tech companies that work with the defense industry, long an investment taboo for many venture capital firms, are drawing record amounts of funding in the wake of Russia’s invasion of Ukraine.
In the past year, governments across the continent have ramped up spending on military defense, pledging billions of euros to modernize and build their militaries. Private investment in defense-related tech companies has increased in tandem. According to startup data provider Pitchbook, investment in aerospace and defense last year reached an all-time high of almost €780 million.