Helsing raises $1.8 billion as defense tech funding accelerates

Helsing has raised $1.8 billion in fresh funding, giving the German defense startup an $18 billion valuation, the company said Monday. For retail investors watching the private tech market, the deal shows how quickly capital is moving into defense technology, especially companies building artificial intelligence systems for military use.

The Munich-based company said both new and existing investors joined the round. Participants included JPMorgan Chase, Lightspeed Venture Partners and Iconiq, according to Helsing.

Helsing said demand from investors was higher than the amount of equity available in the round. The company said that reflected confidence in “AI-driven and software-defined defence technology.” In plain English, that means military tools where software and artificial intelligence play a central role in how systems detect targets, process information or operate with less direct human control.

What Helsing builds

Helsing describes itself as a defense hardware and software platform. The company makes drones and underwater surveillance weapons, and it develops artificial intelligence and autonomous software for military applications.

The company has marketed itself as a European defense champion at a time when governments and investors are paying more attention to domestic military technology. Helsing said its HX-2 drones are among the systems being supplied to Ukraine’s army.

The startup also highlighted its ownership structure, saying it remains mostly European-owned and that this reflects its roots in the region.

Helsing said the new money will help speed up its work on AI platforms that can be built into the defense capabilities of a growing group of partner nations. The company did not provide a detailed breakdown of how the capital will be spent.

Why investors are paying attention

Defense technology has become a larger focus for private market investors, who buy stakes in companies before they trade on public exchanges. These deals can influence public-market sentiment too, especially when listed defense contractors and technology companies are being judged against faster-growing private rivals.

Helsing is often compared with Anduril, the U.S. defense startup that has attracted significant investor backing. Anduril raised $5 billion in May at a $61 billion valuation, according to CNBC.

Other U.S. defense technology startups have also recently pulled in funding. CNBC identified Shield AI and autonomous shipmaker Saronic among the companies that have raised capital in the sector.

The appeal for investors is tied to a shift in how military systems are being built. Traditional defense programs often center on large hardware platforms, while newer startups are trying to sell systems that combine sensors, drones, autonomy and software updates. Autonomy means a machine can carry out some tasks without constant human direction, though the level of human control can vary by system and use case.

Helsing’s latest round gives Europe one of its most valuable private defense technology companies. The valuation also raises the stakes for the company as it tries to turn investor demand into products that partner governments can adopt and deploy.

This story draws on original reporting from CNBC.