European investors are pouring billions of euros into artificial intelligence and defense technology startups, which are seen as key to enhancing Europe's economic competitiveness and security capabilities. PitchBook data shows that total venture capital investment in Europe grew by 5% in 2025, reaching €66 billion—a new post-pandemic high—driven primarily by large financing rounds for top AI and defense firms. Currently, several companies in these sectors are negotiating new funding rounds at higher valuations.
