Top 10 countries on the frontlines of European Defence by VC Investment
- Valerie Charoux
- 9 hours ago
- 5 min read
Defence News Europe – Here are the Top 10 countries on the frontlines of European Defence by VC Investment in 2025 as well as the VC funds that invested in Tough Tech Defence startups, according to the Tough 10 countries by VC Funding report by Dealroom.co published in November 2025:
A new report by Dealroom states: “The Eastern Flank Is Reinventing Europe’s Defence Future: The Rise of the Tough Ten”.
1 - What are Tough Tech Defence startups?
· Tough Tech Defence startups represent 16% of all startups across the Tough 10 countries on the frontlines of European Defence vs. 10% in the rest of Europe.
· By 2025, 53% of Deep Tech investment in Europe’s eastern flank is expected to flow into Defence-driven innovation
· Space and Quantum have become dominant verticals, alongside Energy Security and Resilience Tech.
The Tough 10 Defence startups report is the first comprehensive mapping of defence, dual use and space innovation ecosystems across Europe’s strategic frontier, from the Baltics to the Black Sea.
2 - Here are the Top 10 countries on the frontlines of European Defence by VC Investment – The Tough 10 countries:
1 – Finland
Finland ranks No. 1 country on the frontlines of European Defence by VC Investment reaching USD 661 million for the period 2024-2025. Finland has 55 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 3.8 billion.
Finland’s Government Total Defence Expenditure as a percentage of GDP was 1.4% in 2023, according to a Eurostat report dated March 21st, 2025.
2 – Bulgaria
Bulgaria ranks 2nd country on the frontlines of European Defence by VC Investment reaching USD 49 million for the period 2024-2025. Bulgaria has 3 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 294 million.
Bulgaria’s Government Total Defence Expenditure as a percentage of GDP was 1.5% in 2023, according to Eurostat.
3 – Estonia
Estonia ranks 3rd country on the frontlines of European Defence by VC Investment reaching USD 43 million for the period 2024-2025. Estonia has 29 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 667.2 million.
Estonia’s Government Total Defence Expenditure as a percentage of GDP was 2.7% in 2023, according to Eurostat.
4 – Poland
Poland ranks 4th country on the frontlines of European Defence by VC Investment reaching USD 29 million for the period 2024-2025. Poland has 39 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 500.7 million.
Poland’s Government Total Defence Expenditure as a percentage of GDP was 2.1% in 2023, according to Eurostat.
5 – Lithuania
Lithuania ranks 5th ranks on the frontlines of European Defence by VC Investment reaching USD 20 million for the period 2024-2025. Lithuania has 21 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 269.5 million.
Lithuania’s Government Total Defence Expenditure as a percentage of GDP was 2.5% in 2023, according to Eurostat.
6 – Latvia
Latvia ranks 6th country on the frontlines of European Defence by VC Investment reaching USD 4 million for the period 2024-2025. Latvia has 8 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 41.9 million.
Latvia’s Government Total Defence Expenditure as a percentage of GDP was 3.1% in 2023, according to Eurostat.
7 – Czechia
Czechia ranks 7th country on the frontlines of European Defence by VC Investment reaching USD 3 million for the period 2024-2025. Czechia has 16 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 14.1 million.
Czechia’s Government Total Defence Expenditure as a percentage of GDP was 1.2% in 2023, according to Eurostat.
8 – Slovakia
Slovakia ranks 8th country on the frontlines of European Defence by VC Investment reaching USD 330 thousand for the period 2024-2025. Slovakia has 7 Tough Defence Tech Startups backed by VC funding that have reached a combined enterprise value of USD 29.2 million.
Slovakia’s Government Total Defence Expenditure as a percentage of GDP was 1.2% in 2023, according to Eurostat.
9 – Romania
Romania ranks 9th country on the frontlines of European Defence but has received no VC Investment for the period 2024-2025. Romania has 1 Tough Defence Tech Startup backed by VC funding that have reached a combined enterprise value of USD 924 thousand.
Romania’s Government Total Defence Expenditure as a percentage of GDP was 1.7% in 2023, according to Eurostat.
10 – Hungary
Hungary ranks 10th country on the frontlines of European Defence but has received no VC Investment for the period 2024-2025. Hungary has 4 Tough Defence Tech Startup backed by VC funding that have reached a combined enterprise value of USD 110.1 thousand.
Hungary’s Government Total Defence Expenditure as a percentage of GDP was 1.9% in 2023, according to Eurostat.
3 – Which VC funds invested in Defence startups in the Tough 10 countries on the frontlines of European Defence?
1 – Balnord VC fund
Balnord VC fund has invested in 5 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in Astrolight, Microamp, and Satim.
2 – BSV Ventures
BSV Ventures has invested in 20 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in Airvolve, Repsense, Wayren, Skycorp Technologies, C2Grid, BlackSwan Space, Granarium, Halide Energy, Zvook, Kaisense, Foxtrot, and SafePas.
3 – Coinvest Capital
Coinvest Capital has invested in 13 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in Airvolve, Astrolight, CBRX, Luna Robotics, Repsense, Starflight Dynamics, Unmanned Defence Systems, and WeSky.
4 – DEPO Ventures
DEPO Ventures has invested in 6 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in Wayren, Skycorp, and Twinzo.
5 – NATO Innovation Fund
NATO Innovation Fund has invested in 2 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in Expeditions, and BSV Ventures.
6 – New North Ventures
New North Ventures has invested in 2 funding rounds in Defence startups in the Tough 10 countries on the frontlines of European Defence, namely in SensusQ.
