In recent years, defence and security have become central to conversations around innovation and investment across Europe and the UK.
What was once seen as a niche sector is now pulling in billions, thanks to both government backing and private capital chasing opportunities in national security and technology.
Record-Breaking Funding for Defence Startups
One of the most striking shifts has been the flow of venture capital into European defence, security, and resilience startups.
By 2024, these companies had secured an unprecedented $5.2 billion—almost five times more than just six years ago.
Analysts attribute this surge largely to the ripple effects of geopolitical instability, especially Russia’s war in Ukraine, which has made advanced defence technology a top priority for governments and investors alike.
A Stronger UK Defence Economy
The UK’s own defence sector has seen impressive growth over the past decade.
Between 2014 and 2024, turnover rose by 64%, highlighting the industry’s expanding role in the national economy.
In fact, by 2024, the UK’s aerospace, defence, security, and space sectors combined were employing 443,000 people and generating over £100 billion in revenue.
Investment Hotspots Across Europe
When it comes to attracting capital, the UK has long been a frontrunner.
Since 2019, it has consistently secured the lion’s share of venture funding in the European defence sector.
However, 2024 saw Germany leap ahead, while France closely followed, marking a more competitive landscape across the continent.
Collaborative European Efforts
Europe as a whole has been mobilising new resources to strengthen its defence capabilities.
The NATO Innovation Fund, launched in 2023, brought together 24 NATO allies to create a €1 billion venture pool focused on dual-use, deep-tech startups.
At the same time, the European Union is pushing forward with its €8 billion European Defence Fund, which supports joint research and development projects through 2027.
The UK’s Independent Strategy Post-Brexit
While Europe coordinates through NATO and EU frameworks, the UK has taken its own path since Brexit.
Its efforts are being driven by the National Security Strategic Investment Fund (NSSIF), alongside programs like the Defence and Security Accelerator (DASA).
These initiatives are now overseen by the UK’s newly formed Defence Innovation organisation, which aims to centralise and speed up innovation in the sector.
Role of Heligan Group
Supporting this momentum are advisory groups like Heligan, which focuses on intelligence-led investments.
By partnering with businesses that contribute to safety and security worldwide, Heligan plays a key role in connecting capital with high-impact opportunities.
What Comes Next
The future of defence investment in Europe and the UK looks set to continue on an upward trajectory.
With innovation funds, government backing, and private capital converging, the sector is becoming more dynamic and competitive.
The big question now is how these investments will shape both national security and technological progress in the years ahead.
