Europe will increase its defense investment sharply in 2024 in response to Russian aggression.

European venture capitalists plan to invest $1B in defense technology by the end of 2024, which is 400% more than in 2018, as a result of Russian aggression in Ukraine. According to Dealroom, venture capital investment in defense technology outpaces any other type of investment in NATO countries by 25%.

Germany, Britain, and France invest the most in space technologies among European countries, with an 87% share, or $2.2B. Investments in defense technology increased by 300% in six years to almost $5.9B, and the total amount raised by defense startups in NATO and allied countries reached $18B.

So far, NATO countries have created 370 venture defense startups with a total value of $161B. Defense technologies account for 1.8% of European venture capital funding, 200% more than in 2022.

At the same time, despite investment growth in Europe, 83% of venture investments are in defense technology companies from the US.