Venture funding for defense tech startups reached $3 billion across 102 deals in 2024. This was an 11% increase from the $2.7 billion raised in 2023 across 100 deals. Defense tech had a strong year in 2024, with both an increase in total dollars invested and the number of deals.
In recent years, investors have become more knowledgeable about defense, leading to more efficient capital deployment. Several large rounds stood out in 2024. Anduril raised a significant funding round, valuing the company at $8.5 billion.
Helsing, a Germany-based startup developing AI software for defense, secured funding that valued the company at $5.4 billion. An unnamed autonomous surface vessels maker closed a funding round at a $1 billion valuation, making it a new unicorn in the sector. The growth in defense tech funding can be linked to several factors.
Defense tech funding growth factors
These include an increasingly complex geopolitical landscape and rising demand from defense customers and Congress for new innovations. Technologies attracting strong interest from investors include artificial intelligence, autonomous systems, advanced propulsion technologies, and space tech.
The growth trajectory of defense tech shows no signs of slowing down. Part of this growth is due to the dual-use nature of many defense technologies, such as AI and cybersecurity, which have commercial applications in industries like manufacturing and energy. Many industry experts anticipate that defense spending will rise under the new White House administration, further boosting investor interest.
In 2025, notable funding rounds include a radar startup based in Syracuse, New York, and an unnamed El Segundo, California-based defense manufacturer developing long-range hypersonic strike weapons. Given the current global tensions, defense tech investment will likely remain robust. We are in worldwide competition with China for economic, military, and technological dominance,” said a general partner at a noted venture firm specializing in defense tech.
“Preserving our way of life depends on winning this competition.”