Europe's Defense Tech Darling Is About to Get a Lot Bigger
Helsing, a European startup that builds AI-powered military drones and defense software, is reportedly closing in on a $1.2 billion funding round that would push its valuation to a staggering $18 billion — making it one of the most valuable defense technology companies on the continent.
The Munich-based company, which was founded just five years ago, has risen to prominence with remarkable speed at a time when European governments are racing to modernize their militaries and reduce dependence on American defense contractors.
Who's Behind Helsing?
Helsing has attracted some heavyweight backers. Among its most prominent investors is Daniel Ek, the Swedish billionaire who co-founded Spotify. Ek has been increasingly vocal about the need for European technology companies to engage with defense — a stance that has sometimes put him at odds with critics who argue the tech sector should stay out of military applications.
The startup's co-founders, Gundbert Scherf and Niklas Köhler, both have backgrounds in strategy consulting and government — a combination that has helped Helsing navigate the complex procurement world of European defense ministries.
What Does Helsing Actually Build?
Unlike traditional defense contractors that focus on hardware, Helsing positions itself as an AI-first company. Its core products include software systems designed to process sensor data in real time on military aircraft and drones, giving pilots and operators faster, more accurate battlefield awareness.
The company has also developed autonomous drone systems that are designed to operate in contested electronic environments — a capability that has become increasingly critical given lessons from the ongoing conflict in Ukraine, where drone warfare has evolved at a pace that legacy defense suppliers have struggled to match.
Helsing has already secured contracts with several European governments, including Germany and the United Kingdom, and has positioned itself as a key partner for NATO allies looking to accelerate military modernization.
Why $18 Billion?
The eye-popping valuation reflects both Helsing's rapid commercial traction and a broader shift in how venture capital views defense technology. After years of hesitation — particularly following controversies at companies like Palantir and amid employee protests at Google over military contracts — many leading VC firms have reversed course and are now actively competing for stakes in defense-adjacent startups.
Geopolitical instability has supercharged investor appetite. Russia's invasion of Ukraine in 2022 was a turning point, prompting European governments to dramatically increase defense budgets and creating a surge of demand for modern, AI-enabled military hardware and software that legacy contractors were slow to supply.
Helsing's timing has been near-perfect. The company launched in 2021, just as European governments began seriously reassessing their defense capabilities, and it has grown revenues and government contracts at a pace that justifies — at least in investors' eyes — a valuation that rivals some of Europe's biggest publicly traded industrial companies.
The Bigger Picture
Helsing is part of a broader wave of European defense tech startups, including Andúril's European expansion, Rheinmetall's software push, and a host of drone manufacturers that have emerged since 2022. Together, they represent a structural shift in how Europe thinks about military procurement — faster, more software-driven, and increasingly reliant on startup-style innovation rather than decade-long government contracts.
Whether Helsing can sustain this trajectory as it scales — and as geopolitical tensions remain elevated — will be one of the most closely watched stories in European tech over the next several years.
Source: TechCrunch
