Munich-based defence tech startup Helsing has raised €600mn as geopolitical tensions trigger a flood of capital into AI warfare.
The large investment was led by Spotify CEO Daniel Ek’s VC firm Prima Materia. It brings the company’s total raised to north of €1.3bn, building on a €450mn funding round in July last year.
Helsing didn’t disclose its updated valuation. However, according to the Financial Times, the unicorn company is now worth €12bn, making it one of Europe’s five most valuable private tech companies.
Prima Materia was one of Helsing’s earliest backers — a move that sparked boycotts among artists on Spotify, who feared their use of the platform was helping to fund war. That backlash clearly hasn’t deterred Ek, though, who said Helsing’s technology ensures “strategic autonomy” for Europe.
“By doubling down on our investment, Prima Materia reaffirms its commitment to empowering Europe’s technological sovereignty — an ambition Helsing perfectly embodies,” said Ek.
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Founded in 2021, Helsing has developed an autonomous strike drone now in use by several European militaries, including Ukraine’s. The company also recently unveiled plans for a fleet of autonomous reconnaissance submarines, and last week successfully used its self-driving system to pilot a Saab fighter jet.
Helsing is riding a defence investment boom as war in Ukraine and rising security concerns push European governments to double down on military spending and explore AI technologies for warfare.
According to a new report from McKinsey, investment in European defence tech startups rose by over 500% between 2021 and 2024 compared to the previous three years.
While Helsing is currently Europe’s most valuable defence tech startup, many other companies are experiencing rising demand for their technologies.
In May, German dual-use drone maker Quantum Systems raised €160mn at a valuation north of €1bn, shortly after Portuguese drone startup Tekever also reached the coveted unicorn status.
ARX Robotics, another Munich-based company, recently raised €31mn to expand its fleet of autonomous land drones, shortly after announcing its plans to invest £45mn into a new UK factory.
Kate Leaman, chief market analyst at online broker AvaTrade, previously told TNW that military tech companies have “huge potential” for growth — particularly those with AI-driven solutions.
“We’re already seeing a shake-up in the defence sector, with AI-focused players like Palantir outperforming more traditional defence giants,” Leaman said. “This suggests that cutting-edge, tech-centric firms could possibly capture a sizeable share of the market.”