Funding for defense technology just hit a fresh pinnacle. Defense tech startups have gathered nearly $3 billion thus far in 2024, according to Crunchbase. This broke the earlier peak from 2022 of $2.6 billion. 

It’s quite a remarkable achievement, particularly given the reduction in the count of deals: in 2022, there were 113 rounds in defense tech, surpassing 2024’s total of 85 rounds. 

The record is bolstered by some significant funding rounds this year, such as the $1.5 billion Series F raised by weapons producer Anduril in August, and Saronic Technologies, an autonomous maritime vehicle enterprise established by former Anduril staff, collecting a $175 million Series B this year. Furthermore, the defense infrastructure startup Chaos Industries secured a $145 million Series B this month. 

Europe’s defense tech landscape has also expanded significantly this year. The German AI armaments startup Helsing acquired a substantial $487 million this year. And according to PitchBook, there has been a rise in newly established defense tech venture firms in Europe, like Ukrainian D3 Venture Capital, Lithuanian ScaleWolf, and British Twin Track Ventures. 

“We are currently residing in an ever more perilous world,” Mikolaj Firlej, a general partner of the Europe-based Expeditions Fund, conveyed to PitchBook. “Numerous individuals are now experiencing a heightened motivation and purpose to utilize capital and networks in early-stage companies that might make a substantial impact and aid in safeguarding us.”

The surge in defense tech seems to continue on an upward trajectory: Investors and founders in this sector reportedly anticipate the latest White House administration to generate even more possibilities for startups providing innovations in areas such as space, aeronautics, weaponry, and surveillance tech.

“The close affiliations between [vice president-elect] Vance, Elon, and the defense VC and startup ecosystem will open a substantial path for genuine reform in defense acquisition and broaden the pool of participants,” Nathan Mintz, co-founder of the electronic warfare startup CX2, told Forbes.