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Defense tech start-up funding hits record high as arms firms ramp up

Dealroom data show defense contractors joined $4.1 billion of venture capital rounds so far this year, the highest on record.

Reported · Written up by our desk · Energy Transition

Investment in defense technology start-ups has reached a record high this year as major arms manufacturers increase spending on new military technology, OilPrice reported, citing Dealroom figures.

Dealroom data show defense contractors including BAE Systems, Lockheed Martin, and Airbus have participated in $4.1 billion of venture capital funding rounds so far this year, the highest figure on record.

Separately, White & Case research found 42 defense mergers and acquisitions were completed globally in the first half of 2026, up 56.0% from the same period last year.

White & Case’s Daniel Turgel said strong demand is coming from companies developing AI, cyber security, and autonomous systems, and he added that higher defense budgets and record private capital levels suggest investment and dealmaking could stay strong beyond 2026.

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