What happened
Venture capital firms increased investment in European AI and defence startups. Funding rounds reached billions of dollars. Valuations rose for companies focused on regional security and economic sovereignty. This follows Harmattan AI's January defence funding and Fürstenberg's February AI investments. Capital flows target sovereign technology stacks. Startups develop dual-use AI applications for national security and industrial infrastructure. Total investment volume reflects a sustained shift toward strategic autonomy.
Why it matters
Founders in the defence sector face higher valuation benchmarks because capital prioritises sovereign security. Procurement teams must navigate a market where AI startups are now heavily capitalised. This limits the influence of non-European vendors because regional governments prioritise domestic technology. Security architects gain access to better-funded local alternatives. The pattern of Harmattan and Fürstenberg deals proves that investors now view defence AI as a core asset class. Therefore, competition for technical talent in Europe will intensify.
