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The European defence tech sector is undergoing a transformation, and investors are paying attention.

What was once a niche corner of the tech landscape is now emerging as one of the most strategically important arenas for deep-tech innovation. From AI-powered threat detection to next-generation drone countermeasures, defence-tech startups across Europe are developing dual-use technologies that deliver both commercial returns and sovereign resilience.

The war in Ukraine has accelerated demand for technologies that can be rapidly deployed and adapted to real-world conditions. Many of the most impactful solutions in cyber, communications, and autonomous systems are being developed not by legacy contractors but by startups. These founders are building defence-tech with artificial intelligence, advanced hardware, and scalable software at its core, often creating platforms with wide civilian applications.

That dual-use potential is key. Investors who might previously have avoided defence now see the opportunity in backing technologies that serve both military and commercial markets, from logistics optimisation to environmental monitoring to critical infrastructure protection. Deep-tech is no longer just about lab-to-market breakthroughs; it’s about operational impact, and defence tech delivers.

We’re seeing a new wave of generalist and specialist VCs making room for defence-tech in their portfolios. In parallel, policymakers are encouraging innovation that supports strategic autonomy and national security. Resilience, once a buzzword, is now a major investment theme.

This shift is playing out in the media, too. Once limited to procurement stories or military hardware exposés, defence coverage is evolving. Journalists are increasingly spotlighting emerging defence technologies, the rise of AI in military applications, and the role of startups in shaping Europe’s future security landscape. Tech, policy, and business desks alike are beginning to understand that defence-tech is no longer fringe, it’s front page.

For dual-use companies and their investors, smart communications are becoming just as important as smart technology. Being able to clearly articulate your value proposition, and navigate the sensitivities of the sector, is essential to building credibility with stakeholders, customers, and the media.

The defence-tech era in Europe is just getting started. And it’s no longer a question of whether investors should engage, but how fast they can move.