Defence tech has become the hot topic in Europe in 2025, with rising geopolitical tensions pushing the industry front and centre. It’s also prompting more founders to seek VC investment for ventures in the sector.
“We’re seeing more founders building in defence tech than ever before,” says Jack Wang, principal at VC firm Project A. He says most of the founders they speak with “do not come from military backgrounds anymore but instead mainstream tech — from ex-unicorn founders to ex-Palantir engineers.”
The scope of defence also seems to be expanding, with VCs sweeping spacetech and climate under the “resilience” umbrella.
Many defence startups currently out fundraising, however, seem to be focused on software and drones. It’s no surprise: most of the funding in European defence has gone to startups like autonomous software and drones makers Helsing and Quantum Systems.
Sifted polled several VCs about which defence tech startups are currently in the market. Sifted reached out to each startup to confirm that they are fundraising; not all companies could be reached for comment. Know a defence tech startup that Sifted missed? Send us an email.
Project Q
HQ: Munich
Focus: Software
The German startup, which builds software connecting different data inputs for defence and security users, is currently raising a round, which could be in the $5m range, sources with knowledge of the fundraise tell Sifted. Project Q declined to comment.
Its platform integrates fragmented data systems into holistic situational awareness for cyber, land, air and sea domains.
Labrys
HQ: London
Focus: Software
The UK-based startup provides corporate, government and military and humanitarian users with a workforce management platform to verify, support and pay teams around the world. The company is raising its Series A round; it most recently raised a $5.5m seed round led by Project A, along with other investors including MD One Ventures, Offset Ventures and Expeditions Fund. Labrys declined to comment.
Kreios Space
HQ: Barcelona
Focus: Space
The roughly four-year-old Spanish startup is building an electronic propulsion system which will enable satellites to remain in very low earth orbits using energy from air (dubbed its “air-breathing electronic propulsion” engine) instead of fuel. The startup raised €2.3m in pre-seed funding last summer, from investors including Grow Venture Partners, XesGalicia and SpaceQuest Ventures.
Nordic Air Defence
HQ: Stockholm
Focus: Drones
The startup is building a dual-use, software-powered interception drone that it says is cheap and fast. Last November the company raised €1.2m in funding from investors including Nordic VC SNÖ Ventures.
CEO Karl Rosander confirmed the new fundraise to Sifted. “While we aren’t disclosing the specific amount we’re targeting at this stage, I can reveal that our focus is on securing funding from exclusively European funds, and we are looking to close this quarter.”
Ailand Systems
HQ: Kyiv
Focus: Drones and demining
The startup builds autonomous drones for landmine detection as well as agricultural applications like pest control and crop health monitoring. Ailand Systems is targeting a $2m fundraise which it aims to close in May, CEO Dmytro Titov tells Sifted. The startup says it can detect all types of landmines and says it is up to 20 times faster than a human at visual inspections.
Founded in 2023, Ailand Systems received $200k in funding from the Nezlamni fund, founded by the creators of ride-hailing developer Uklon, and is also backed by Ukrainian VC D3 and defence innovation platform Brave1.
Kraken Technology
HQ: London
Focus: Maritime
Founded in 2020, Kraken Technology specialises in the design and manufacturing of maritime technologies, vehicles and high-performance platforms for protecting the security of coastal areas. The company says it has a partnership with autonomous robotics operating systems developer Auterion and has worked with French defence prime Thales on developing a gunship. It’s also backed by German autonomous drones company Quantum Systems’ founder Florian Seibel, according to his LinkedIn profile.
Swarmer
HQ: US and Ukraine
Focus: Drones software
The startup, whose team is largely based in Ukraine, is developing an AI-powered mission control centre to coordinate drone swarms. The software can integrate multiple drones per human operator and increase efficiency, says the company. Swarmer most recently raised $2.7m in seed funding last year from investors including RG.AI, D3, Radius Capital and Green Flag Ventures. Swarmer declined to comment.
Farsight Vision
HQ: Lviv
Focus: Geospatial data and drones
The startup uses drone flight data to create 3D digital twins to provide pilots with real-time intelligence, analytics and situational awareness for flights. Farsight Vision raised €600k in pre-seed funding from defence tech coalition Darkstar last autumn.
Airlogix
HQ: Kyiv
Focus: Drones
The company develops dual-use unmanned aerial drones for things like reconnaissance. Originally making drones for cargo, the company pivoted to military applications in 2022. The startup has received backing from D3.
Read the orginal article: https://sifted.eu/articles/defence-tech-startups-fundraising/
