HomeAnalysisThe Rise of DefenseTech: 10 Startups to Watch

The Rise of DefenseTech: 10 Startups to Watch

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In the last 2 years, we have noticed a sensitive growth in the funding of DefenseTech startups.

The war in Ukraine and the recent attack of Hamas, which triggered the new conflict in the Gaza Strip, with the risk to spread the conflict in the Middle East, have brought several governments to extend their rearmament plans with the promise of dedicating larger portions of their budgets to defense investments. 

In this evolving environment, technology has always been a key factor.

According to a recent market research study, the global defense IT spending market size was valued at USD 86182.0m in 2022 and is expected to expand at a CAGR of 5.47% during the forecast period, reaching USD 118652.8m by 2028. In addition, the European Defence Agency (EDA) recently published its annual Defence Data report for 2022, for the first-time detailing defense spending from all EU Member States. At a record €240 billion, 2022 European spending again increased by 6% on the previous year, marking the eighth year of consecutive growth. It shows that 20 out of the 27 EU Member States increased expenditure in the field, with six increasing spending by over 10%.

Defense IT is a kind of network security technology, which includes network structure security analysis technology, physical security analysis technology, management security analysis technology, system security analysis technology, and the technology of network security analysis.

By leveraging Artificial Intelligence, engineering and cybersecurity knowledge, just to name a few areas, startups are working to develop and bring to market both software and hardware solutions to serve the defense needs of countries always more worried about old and new threats. 

Venture capital is already abundantly flowing. In this article, we will introduce 10 vc backed startups, which, at different stages, are advancing high tech solutions in the field. 

USA

  • Darkhive is a San Antonio, TX-based startup advancing autonomous drones for public safety and military personnel. Its uncrewed systems with open hardware and software interfaces provide life-saving situational awareness at home and abroad. 
  • BlueVoyant is a NYC-based cybersecurity company that protects critical infrastructure sectors with a focus on the defense industrial base, as well as federal, state, and local government. Its platform combines internal and external cyber defense capabilities into an outcomes-based, cloud-native cybersecurity solution by continuously monitoring a network, endpoints, attack surface, and supply chain, as well as the clear, deep, and dark web for threats. It leverages both machine-learning-driven automation and human expertise to deliver cybersecurity to more than 900 clients across the globe.
  • Dedrone is a San Francisco, CA-based smart airspace security company that delivers a Command and Control solution for all Counter-Uncrewed Aircraft Systems (C-UAS). It detects, identifies, locates, analyzes and mitigates nearly 300 different drone types across more than 65 different manufacturers. Its solution, which can operate cloud-based or on-prem/air-gapped, includes comprehensive AI/ML-based detection capabilities, fusion tracker software, sensors, mitigation functionality and advanced analytics.
  • Shield AI is a San Diego, CA-based defense technology company building an AI pilot for aircraft. The company builds an AI pilot called Hivemind, which enables teams of intelligent aircraft to operate autonomously in high-threat environments on the edge, without the need for remote operators, command inputs, or GPS.

Anduril Industries is a Costa Mesa, CA-based defense technology company dedicated to innovating the U.S. and allied military capabilities with advanced technology. Its family of systems is powered by Lattice OS, an AI-powered operating system that turns thousands of data streams into a realtime, 3D command and control center. 

UK

  • Labrys Technologies is a London UK-based defense technology startup that provides a Command and Control (C2) software application to coordinate secure verification, tracking, tasking and payment of a global globally distributed workforce through a single interface in a compliant way.
  • Satellite Vu is a London, UK-based provider of a platform that leverages infrared technology to capture high-resolution thermal data from space to monitor locations on earth in near real-time to measure the impact of human activity. The space-enabled climate technology provides insight into economic activity, energy efficiency and carbon footprint for a range of industries including Defense and Intelligence, the Built Environment; and Industrial Activity Monitoring.

GERMANY

  • ARX is a Munich, Germany-based defense technology manufacturer specializing in advancing autonomous unmanned systems for dual-use applications. The company builds and operates autonomous Single-to-Multi-Use robots for various applications with the goal to help soldiers and civilian first responders make better decisions and take more effective action in life-threatening situations. For the armed forces, ARX robots serve as consumable solutions that can help train and protect troops, gather intelligence and withstand the challenges of missions. The company’s unarmed GEREON ground robots use sensors, cameras, alarms and transport capabilities for live fire training exercises, simulation, surveillance and decoy purposes. First units are being tested with defense companies and with the armed forces of Germany, Austria, Switzerland and Estonia.
  • Quantum Systems is a Munich, Germany-based innovator in dual-use drone-robotics offering multi-sensor technology for both government and commercial clients. Its range of electric vertical take-off and landing (eVTOL) sUAS are built to maximize range and versatility and provide operators with a seamless user experience. By integrating software capabilities like edge computing and real-time AI-powered data processing, Quantum Systems is building UAS for clients in defense, security, and the public sector.
  • Helsing is a Munich, Germany-based defense AI company focusing on developing software-based capabilities to protect democracies. Helsing partners with governments and hardware manufacturers to deploy mission-enhancing software. The company funds its own research and technology development, which allows it to undertake its own R&D at scale, applying the speed of software development cycles to mission challenges in defense. With operations in the UK, Germany and France, Helsing accesses software and AI talent from across Europe, while serving each country’s specific sovereign requirements.

VCWire

27/12/2023