European defence technology start-up Helsing is making waves in the industry as it seeks to raise nearly $500 million from Silicon Valley investors such as Accel and Lightspeed Venture Partners. If successful, this funding round would value the company at $4.5 billion, an impressive increase from its previous valuation just a year ago. Helsing, based in Munich, specializes in AI-based software for defense, using artificial intelligence to process large amounts of data and provide real-time battlefield intelligence. The company’s software is even being used in Ukraine to develop AI capabilities for drones.
This news comes in the midst of a surge in private investment in military suppliers caused by global conflicts. Traditional venture capital investors are increasingly showing interest in defense tech companies, as demonstrated by Accel’s involvement in Helsing. Accel, known for backing successful companies like Facebook and Spotify, has not previously invested in a defense tech company, making its support of Helsing a significant development.
Helsing’s previous funding round, announced in September, raised €209 million at a valuation of approximately €1.5 billion, and the current discussions for funding would value the company at $5 billion. This high price tag puts Helsing among Europe’s most valuable tech companies, alongside AI start-up Mistral, which recently raised €600 million at a valuation of almost €6 billion.
The changing landscape of defense tech investment can be attributed to rising tensions between the US and China, as well as Russia’s war in Ukraine. These conflicts have led to an increase in defense spending by nation states. In fact, Nato has recently begun investing its €1 billion “innovation fund” in European tech companies, signaling a growing interest in defense and dual-use technologies.
Helsing has also secured partnerships with established European defense contractors, including Rheinmetall in Germany and Saab in Sweden. These partnerships aim to integrate AI into existing platforms, such as fighter jets, enabling troops to outsmart the enemy using software-defined technologies. Airbus is also collaborating with Helsing on AI technologies for both manned and unmanned systems.
Comparisons have been drawn between Helsing and California-based start-up Anduril, which specializes in autonomous weapons and defense systems. Anduril is set to close a $1.5 billion funding round, led by Peter Thiel’s Founders Fund and Sands Capital, valuing the company at $12.5 billion. Both Helsing and Anduril count Lightspeed among their backers, further solidifying the growing interest in defense tech companies.
With these developments, it is evident that the field of defense technology is rapidly evolving to incorporate AI and software-defined technologies. Helsing’s success in securing substantial funding and attracting Silicon Valley investors highlights the growing appetite for innovative defense solutions. As tensions persist and conflicts continue to shape the global landscape, defense tech companies like Helsing are well-positioned to make a significant impact in the industry.
In the words of Andrea Traversone, managing partner of Nato’s “innovation fund,” Europe is “catching up very fast” to the US in terms of investment in defense and dual-use technologies. This shift in focus from traditional hardware to software-defined technologies emphasizes the need for cutting-edge solutions in modern warfare. Helsing, with its AI-based software and strategic partnerships, is at the forefront of this transformation, poised to contribute to the evolution of defense technology in Europe and beyond.
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