VCs Recalibrate to Defence AI: Helsing Raises €209M, Shield AI Banks $200M
A fresh wave of venture capital is flowing into AI in Defence as investors pivot to dual‑use autonomy and mission software. Big rounds at Helsing and Shield AI signal a transatlantic reset in dealmaking, while Anduril and Skydio anchor valuations that traditional enterprise AI has struggled to match.
Funding Momentum Shifts to Dual‑Use Defence AI
Venture capital attention has swung decisively toward AI in Defence, with large, late‑stage rounds underscoring investor confidence in dual‑use platforms that serve both military and commercial missions. European player Helsing closed a €209 million Series B to expand combat‑ready perception and decision systems, while U.S. autonomy startup Shield AI secured $200 million in equity to scale its Hivemind AI pilot across uncrewed aircraft.
Dealmakers cite the combination of clear government demand and defensible moats—data advantage, integration expertise, and ruggedized autonomy—as catalysts for bigger checks and faster diligence. For more on related cyber security developments. The shift is visible in the capital stacks of Anduril, which raised $1.48 billion at an $8.5 billion valuation, and drone maker Skydio, which landed $230 million at a reported $2.2 billion valuation, moves that boosted confidence across the category according to PitchBook analysis. Reuters also highlighted Anduril’s round as a bellwether for defense tech’s maturation in late 2022.
Europe’s Capital Stack Matures as NATO’s New Fund Deploys
Europe’s defence AI ecosystem is gaining structure, with the €1 billion NATO Innovation Fund beginning to deploy into dual‑use deep tech. The fund’s mandate—to bridge early‑stage financing gaps for strategic technologies—has dovetailed with the rise of Helsing and industrial partnerships from primes like Saab, widening the pipeline from seed to growth checks. Reuters reported the fund’s first investments in 2024, signaling a coordinated approach to scaling frontier technologies across member states as announced here.
The region’s investors are also coalescing around dual‑use exportability and NATO interoperability, which improves the path from prototype to field deployment. For more on related quantum ai developments. These dynamics address historic challenges in continental defense procurement while creating new opportunities for venture-backed autonomy and sensing platforms. This builds on broader AI in Defence trends that emphasize software‑defined systems and open architectures as catalysts for faster adoption.
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