How Europe’s defence start-ups are reshaping the future of war

Ukraine war spurs military innovation

The war in Ukraine accelerated a fundamental shift in how Europe is developing its military technology. Instead of waiting for governments to initiate long acquisition processes, a new generation of venture capital-backed start-ups is propelling innovations onto the battlefield immediately. The process not only accelerated weapons development but also created billion-dollar companies overnight, the New York Times reported.

Helsing's overnight success in Germany

Munich startup Helsing is now one of Europe's most valuable defence startups, worth €12 billion. Initially funded by Spotify founder Daniel Ek, the company began selling drones to Ukraine and redeploying them every few weeks with battlefield feedback. Its venture highlights the new Silicon Valley defence model: prototype rapidly, field-test in real-world environments, and adapt at speed.

From cockroach spies to AI fighter jets

The injection of private capital — $31 billion worldwide last year — is bankrolling a diverse range of initiatives. They cover everything from cheap drone interceptors to robotic warships, and even cockroaches with spy gear onboard. Helsing has already flown an AI system, Centaur, that successfully controlled a Saab Gripen fighter plane in simulated combat, beating human pilots. The firm last week announced it would build an unmanned combat aircraft called the CA-1 Europa, with missions under way in four years.

Ukraine as a battlefield laboratory

Ukraine conflict is the testing ground for such new technology. About 80 percent of targets are now taken out with drones, underlining their dominance in modern war. Start-ups regard Ukraine as proof that low-cost, modular designs like drones or autonomous ships can do harm previously the domain of multimillion-dollar missiles. Such in-time experimentation has persuaded investors and governments alike to pump money into unconventional solutions.

Opportunities and challenges of private investment

The venture-capital model delivers speed, but there are risks involved. Private investors are profit-driven, and this will not always be in accordance with strategic needs. Critics predict a successful defence start-up sector may lead to an evolving military-industrial complex. Moreover, selling to the government remains a long and hard task. "Selling to the government is difficult," said Chris Sylvan, co-founder of Cambridge Aerospace. "But it should be difficult. That's our taxpayers' money, pounds and euros."

What's next for Europe's defence start-ups

Whereas conventional defence giants like Lockheed Martin or BAE Systems continue to dominate gigantic projects, start-ups are asserting themselves where speed and agility matter most. From building drone ships in Britain to AI-driven submarines in Germany, they are reshaping the European security landscape. The question remains whether such firms can match the speed of innovation while navigating politics, procurement, and the ethical challenges of outfitting technologies like artificial intelligence.