Global defense spending is rising, and startups are vying for a larger share of it.
There also appears to be plenty of capital to be deployed. Last yr, global military spending rose 9% to $2.7 trillion per think tank Sipri‘S estimate. It was the sharpest increase in over 30 years.
Meanwhile, in startup land, defense technology is also booming. This applies to virtually every metric, including total spend, number of rounds, large deals, and unicorn creation. In fact, global investment in defense technologies has already reached record highs this yr.
The Book of Numbers: Funding for VC-backed defense startups – defined here as industries related to the military, national security and law enforcement – reached $7.7 billion across nearly 100 deals in 2025, in line with Crunchbase. data.
This is well over twice as much as last yr, as seen in the chart below, and is the highest level in the history of investment in this space.
Notable recent rounds: Extra-large cartridges played a key role in increasing the total. So far this yr, at least 10 rounds valued at least $200 million have gone to corporations in the defense category, in line with Crunchbase data.
Anduril Industryarguably the most famous startup in the defense technology industry, it was also the largest fundraiser this yr. The Costa Mesa, California-based company closed a $2.5 billion Series G round this summer. Founders Fund led the financing that greater than doubled the valuation of 8-year-old Anduril to $30.5 billion.
Technology startup in the field of defense and critical infrastructure Chaos industrywas one other investor favorite. The startup from Los Angeles closed, among others, Series D for $500 million this month, just six months after closing its $275 million Series C. Founded in 2022, Chaos specializes in advanced sensing, monitoring and communications for the defense and business sectors. The company is developing a radar system that gives early warning and tracking of drones, missiles and aircraft.
Meanwhile in Austin Saronic has committed significant capital to the development of autonomous surface ships for maritime use. The 3-year-old startup recovered Series C funds price $600 million earlier this yr.
Europe is also significantly increasing its defense spending, reaching EU spending levels record levels after Russia attacked Ukraine. At the same time, defense startups in the region are attracting heavy scrutiny. The leader here is a company from Munich Helsingaa startup focused on using software to modernize and improve defense capabilities, which it raised $694 million in Series D financing this summer.
Software eats the army: Defense-focused investors are optimistic that the recent surge in funding for space startups is an indicator of much more to return.
In review this yr, Point72 venturesenterprise capitalist whose foremost areas of interest are defense opined that in the coming years, “artificial intelligence, autonomy and software-based systems will redefine modern conflict, favoring flexibility over mass and scale.”
According to Point72, much of the defense industrial base was designed for a different era, where six- to eight-year timelines and a “hardware first” mindset were the norm. Today, he says, “that won’t do the trick.” Recent conflicts have shown that there is an urgent need for latest technologies, including autonomous systems, electronic weapons and advanced manufacturing.
While we at Crunchbase News lack the expertise to opine on the demands of a modern military, we are able to say something about what enterprise checkbooks indicate about the dynamics of space. It is clear that investor interest is growing in this area. Given the relative youth of most defense startups, there is also a strong likelihood that greater scrutiny will come.