German defense technology firm Helsing is in advanced talks to secure $1.2 billion in new funding, a deal that would value the company at approximately $18 billion. That marks a significant jump from less than a year ago, when a round led by Spotify founder Daniel Ek’s investment firm valued Helsing at $14 billion.
The proposed round is being led by Dragoneer Investment Group, with existing backer Lightspeed Venture Partners as co-lead. Sources tell the Financial Times the round is “oversubscribed multiple times,” underscoring intense investor appetite for AI-driven defense technology.
Founded in 2021 and based in Munich, Helsing originally focused on AI software for battlefield analysis. It has since expanded into autonomous weapons, including its HX-2 kamikaze drone, now deployed by Ukraine’s military. The company also develops autonomous submarines and is working on unmanned aircraft to accompany crewed fighter jets.
European governments have ramped up defense spending since Russia’s 2022 invasion of Ukraine, fueling a boom in defense tech startups. Helsing recently landed a €269 million contract with the German military, with an option to expand to €1.46 billion.
Despite some criticism of its early drone performance, Helsing’s technology has won high-profile support, including from an adviser to Ukrainian President Volodymyr Zelenskyy. The company will remain nearly 80% European-owned, even with U.S.-led investors backing this round.