Europe’s defence industry is undergoing major change, driven by the war in Ukraine. Investment in Europe's defence start-ups has surged since the conflict began in 2022. The sector has reportedly raised $2.8 billion since then, compared to $176 million in 2021, with $1.6 billion secured in the first seven months of this year. Another analysis estimates 2024 funding at $5.2 billion, five times the pre-war level. Capital is flowing into drones, AI battlefield software and unmanned submarines. Military veterans now reportedly head a quarter of Europe's 80-plus defence start-ups, while NATO spending and political pressures from US President Donald Trump are adding momentum to the boom. But can Europe sustain this surge once the urgency of war fades?
