Helsing nears $18B valuation with $1.2B raise as defence tech booms
What's the deal? Helsing, the Munich-based defence technology startup backed by Spotify founder Daniel Ek, is set to raise $1.2B in new funding at a valuation of roughly $18B. US firm Dragoneer Investment Group is leading the round, with existing backer Lightspeed Venture Partners as co-lead. The round was oversubscribed multiple times.
Founded in 2021, Helsing builds AI software for battlefield decision-making and has expanded into kamikaze drones and autonomous underwater vessels. It has secured a deal worth up to €1.46B to supply drones to the German armed forces and says its HX-2 drone is hitting Russian targets on Ukraine's frontlines.
Why now? Private investment in defence has surged since Russia's full-scale invasion of Ukraine in 2022, as European governments pledge higher military spending and the battlefield shifts toward drones and AI-powered systems. Helsing's valuation has jumped from €12B ($14B) less than a year ago, when Ek's investment firm Prima Materia led a €600M round.
The broader market confirms this momentum. AI-focused defence startups are attracting capital at an accelerating pace. In the US, Anduril has held talks about raising at a valuation exceeding $60B. In Europe, Quantum Systems, Tekever, and Peter Thiel-backed Stark are all competing for investor attention.
What could go wrong? Rheinmetall chief executive Armin Papperger has warned of a "bubble" forming among drone developers. Helsing itself has faced scrutiny — its first kamikaze drone, the HF-1, drew criticism in Ukraine over performance and price.
The company also remains nearly 80% European-owned, but its latest round is led by US firms. As geopolitics grow more complex, questions about foreign ownership of sensitive defence technology could intensify.
The signal: Defence tech is following a trajectory familiar from other venture-backed sectors: fast-rising valuations, oversubscribed rounds, and a flood of new entrants. According to Dealroom data, European defence and aerospace startups have seen a dramatic increase in funding since 2022, with AI-native companies capturing a growing share. Helsing's $18B price tag would make it one of Europe's most valuable private companies, full stop — not just in defence.
The bigger picture is a structural shift. European governments are realising that legacy procurement programmes can't keep pace with the drone-first battlefield. That creates a massive addressable market for startups that can deliver AI-enabled hardware fast. Whether current valuations are justified depends on whether these companies can convert pilot programmes and small contracts into the kind of large-scale, recurring revenue that defence incumbents have long enjoyed.
Source: Financial Times
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