This report analyzes the state and trends of startups and venture capital funding in the Defence, Security, and Resilience (DSR) sector in Europe.
It highlights record VC funding reaching $8.7B in 2025, with significant investments in AI, Autonomy, Quantum, Computing, and Space technologies. The report also notes increasing revenue generation by startups, growing partnerships with defense primes, rising debt and grant funding, and a fourfold increase in mergers and acquisitions despite no public listings in 2025. The UK and Germany lead regional investment in this sector.