European defense AI company Helsing is closing in on a $1.2 billion funding round at roughly an $18 billion valuation, a step-up from the $14 billion valuation it commanded less than a year ago. Dragoneer Investment Group is leading the round, with existing backer Lightspeed Venture Partners co-leading, according to a Financial Times report carried by TechCrunch.
From €600M to $1.2B in 11 Months
Helsing last raised in June 2025, taking a €600 million ($660 million) check led by Spotify founder Daniel Ek's Prima Materia at a €12 billion valuation. The new round, if it closes at the reported terms, would mark another aggressive step-up and confirm Helsing as Europe's most valuable privately held defense technology company. The startup remains roughly 80 percent European-owned despite the US-led investor base.
Drones, Software and the Ukraine Proving Ground
Founded in 2021 by Gundbert Scherf, Torsten Reil and Niklas Köhler, Munich-based Helsing builds AI software, drones and autonomous systems for air, land, sea and underwater operations. Its HX-2 strike drones and HF-1 underwater gliders have been deployed in Ukraine, where the ongoing war has become a fast-feedback testing ground for autonomous defense technology. The company has signed framework deals with the German, French and UK militaries and is expanding manufacturing capacity across Europe.
Europe's Defense Tech Race Heats Up
Helsing now dwarfs other European defense unicorns. German drone maker Quantum Systems closed a €180 million round in November 2025 at a €3 billion valuation, and Lisbon-based Tekever crossed unicorn status with £400 million in 2025. The widening gap reflects how investors are concentrating capital into a small number of European platforms expected to scale alongside booming NATO defense budgets.
Why VCs Keep Writing Bigger Checks
Capital is flowing into autonomous defense for two converging reasons: operational validation in Ukraine, where low-cost drones and AI targeting software have rewritten battlefield economics, and a structural reorientation of Western procurement budgets toward software-defined hardware. The same dynamic has fueled the rise of US peers like Anduril, which closed a $5 billion Series H at $61 billion last week, and pushed the Pentagon to consider equity stakes in US drone startups.
What's Next for Helsing
Helsing, Dragoneer and Lightspeed did not immediately comment on the reported round. Proceeds are expected to fund expanded drone production, AI model development, and additional European hardware facilities. The deal sits alongside other capital pouring into autonomous defense, including Powerus qualifying for Phase II of the Pentagon's $1 billion Drone Dominance program and Hermeus winning $159M from the Defense Innovation Unit.
Reporting based on coverage from TechCrunch and the Financial Times.