Against the backdrop of surging global conflict, US investors provided more than 65% of venture capital investment in European defense technology in 2024, compared to 18% last year.
According to Dealroom research, in 2023 US venture capital firms provided $458M to European defense startups, more than three times larger than any amount previously invested.
Meanwhile, European security expert Edward Lucas noted that Poland, wary of the Kremlin’s far-reaching ambitions, is taking the leadership role in the region’s security. It will spend 5% of its GDP on defense next year, already possesses the third largest military in NATO, and is purchasing modern tanks, artillery, and fighter jets.
“Russia has successfully influenced the political mood in Washington, which has fundamentally changed the geopolitical situation in Europe. For 70 years, the US has encouraged its allies to strengthen their defense capabilities, but now they are losing this role, and other countries have to fill this gap,” says Lucas.