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This year, the world’s largest defense companies invested record sums in military startups, seeking to adapt to the rapid changes in the character of modern warfare.
This is according to the Financial Times, UATV English reports.
“Recent conflicts have demonstrated the need for a modern type of warfare, in which traditional platforms are used alongside new breakthrough technologies,” noted Gwen Billon, a partner at investment bank PJT.
According to data from Dealroom, defense conglomerates that have long partnered with Western governments and militaries, including Lockheed Martin and BAE Systems, have taken part in venture investment rounds worth $4.1 billion since the start of the year.
The total value of global defense deals this year, including mergers and acquisitions as well as investment raises, has already exceeded $40 billion.
The record annual volume of such deals and investments was recorded in 2019, at $59 billion.
According to the publication, governments are boosting defense spending amid recent wars and conflicts, including Russia’s war against Ukraine. This has increased demand for weapons that can be produced faster and cheaper — from interceptor missiles to autonomous drones.
Last week, American company Lockheed Martin, the world’s largest arms manufacturer by sales volume, announced its intention to invest at least $100 million in British and European defense technology startups.
British company BAE Systems recently committed to investing €50 million in two funds managed by Lakestar and Expeditions, leading European investors in defense startups.
As previously reported, the Stockholm International Peace Research Institute (SIPRI) recorded a 9.2% increase in global deliveries of major weapons systems between 2021-2025, while exports of Russian weapons declined significantly over the past five years.
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