European defense startups forecast to raise record $10.5 billion in 2026

Data platform Dealroom forecasts European defense startups will raise $10.5 billion in 2026, a record year driven by EU 27 funding more than doubling. The firm characterized the trend as "Europe catching up rather than the U.S. slowing," signaling a structural shift in European defense-tech venture capital.

Why it matters: EU defense venture funding has doubled year-on-year — Europe is finally running toward the problem, though starting from a much smaller base than the U.S.