Which European countries receive the most VC Defence investment?
Defence News Europe - Here are the European countries that receive the most VC Defence investment in 2026, according to the State of Defence Tech 2026 by Dealroom. Higher defence spending generally comes with more defence VC funding. Four years after Russiaʼs 2022 invasion, Ukraineʼs wartime posture is driving massive public and private investment, with defense absorbing 37% of GDP and 37% of VC funding. Key Defence Tech sectors in Europe include Drones (UAVs), that represent the most mature segment by leading with $4.7B raised across 40 rounds. Anti-drone solutions follow with $1.2B raised and maritime systems (USVs/UUVs) with $796M raised in 2026, more than all the previous years combined. The Ground Defence Robotics segment (UGVs) with $78M raised is also a fast-growing Defence sector.
Top 10 European countries that receive the most VC Defence investment in 2026:
1 - Germany
Germany ranks No. 1 country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 3.5 billion by September 2026. Germany received total VC Defence Funding of USD 5.9 billion between 2020 and September 2026. Top VC funding rounds in Germany in 2026 include late stage fundraising for Helsing, Quantum Systems and Stark, but also early stage rounds for TYTAN Technologies, Hypersonica and Project Q. Germany leads on defence VC share with 16.6% while spending above 2% of the country´s GDP on defence.
2 - Finland
Finland ranks 2nd country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 1.2 billion by September 2026. Finland received total VC Defence Funding of USD 1.8 billion between 2020 and September 2026. Top VC funding rounds in Finland in 2026 include ICEYE with €1.0B Series F, but notable rounds also include SensoFusion and Kelluu. Finland leads on defence VC share with 29.2% while spending above 2% of the country´s GDP on defence.
3 - United Kingdom
The United Kingdom ranks 3rd country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 932.4 million by September 2026. The UK received total VC Defence Funding of USD 2 billion between 2020 and September 2026. Top VC funding rounds in the UK in 2026 include Cambridge Aerospace and Kraken Technology.
4 - France
France ranks 4th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 375.5 million by September 2026. France received total VC Defence Funding of USD 919.4 million between 2020 and September 2026.
5 - Netherlands
Netherlands ranks 5th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 69.6 million by September 2026. Netherlands received total VC Defence Funding of USD 358.7 million between 2020 and September 2026.
6 - Sweden
Sweden ranks 6th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 61.2 million by September 2026. Sweden received total VC Defence Funding of USD 121.2 million between 2020 and September 2026.
7 - Norway
Norway ranks 7th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 50 million by September 2026. Norway received total VC Defence Funding of USD 135.4 million between 2020 and September 2026.
8 - Estonia
Estonia ranks 8th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 33.1 million by September 2026. Estonia received total VC Defence Funding of USD 68 million between 2020 and September 2026.
9 - Austria
Austria ranks 9th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 25.9 million by September 2026. Austria received total VC Defence Funding of USD 60.9 million between 2020 and September 2026.
10 - Ukraine
Ukraine ranks 10th country in Europe that received the most VC Defence investment in 2026 with VC Defence Funding reaching USD 19.8 million by September 2026. Ukraine received total VC Defence Funding of USD 46.5 million between 2020 and September 2026. Four years after Russiaʼs 2022 invasion, Ukraineʼs wartime situation is driving massive public and private investment, with defense absorbing 37% of GDP and 37% of VC funding.
¨Weʼre looking at the capability to quickly adapt, innovate. I think thatʼs ultimately where the value is.”
– Roman Sulzhyk, Head of Investment and Founder at early-stage Ukrainian VC Resist.UA, speaking about the rapid feedback loop between the VC, the military, and startups and how it feeds into funding founders.
