The shares of the European aerospace companies and defense companies increased this week that increase the expectations of military technology startups of the continent.
Great Britain's BAE systems jumped by 9% on Monday, while the Germany's Rheinmetall jumped by 14%. Shares in Sweden's Saab, Italy's Leonardo and France Thales are also booming. At the end of the day, the Stoxx Europe Aerospace and Defense Index had reached an all -time hill.
Military technology companies have also increased. Kate Leaman, Chief Market Analyst At online broker Avatradesaid these companies have “great potential” for growth in particular those with AI-controlled solutions.
“We are already seeing a shock in the defense sector, with AI-focused players outdoors such as Palantir traditional defense giants,” Leaman told TNW. “This indicates that state -of -the -art, technically centered companies could possibly capture a considerable share of the market.”
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The start -ups for the tech defense -tech also attracted the attention of investors. In 2024 they drew a record of $ 5 billion for VC financing – an increase of 24% compared to the previous year.
The dynamics have increased expectations of future public lists.
“Many startups in defense technology have not yet been publicly committed, but since the market for the heating and growth of investors increases, there is a strong way to see more IPOs in the near future,” said Leaman.
“This could open the door for new investment opportunities and increase the profile of these emerging companies.”
The urge for defense technology
The stroll through expenditure is under growing concerns about the military sovereignty of Europe.
Guide on the entire continent were shaken by the Russia Ukraine War and the tensions with the Trump government.
The Ukrainian President, Volodymyr Zelensky, called for the creation of a “army of Europe”. His French counterpart Emmanuel Macron has asked his allies to “awake” and to spend more for the defense. The President of the European Commission, Ursula von der Leyen, would like to trigger an emergency clause in order to exclude military expenses from the tax restrictions in the EU countries.
A growing proportion of her budget will apply to military technology – and startups begin to earn.
According to a new report by McKinsey, investments in the startups of European defense technology have increased by over 500%between 2021 and 2024 compared to the past three years.
However, the report added that the sector in relation to ripening remains about five years behind the US American US US sector.
An essential factor in this gap is the struggle for securing funding in the late stage A common problem for European startups in the industry.
Nevertheless, the rise of defense technology is continued.
“The military spending quickly moves from the traditional hardware towards software, drones and robot solutions,” said Leaman. “As a result, defense technology companies that specialize in these areas can enjoy increasing demand for their products and services.”
Defense Tech is a key topic at this year's meeting, the guideline track of only invited guidelines of TNW conference. The event will take place on June 19 and 20 – a week before the NATO summit in Amsterdam.
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