Venture Capital Fuels Europe’s New Air Defence Start-Ups

Venture capital is increasingly targeting Europe’s nascent air defence sector, with investors seeking opportunities in technologies designed to counter the growing threat of mass drone attacks. The shift reflects a recognition that traditional defence systems, reliant on expensive missiles to intercept low-cost drones, are unsustainable in the face of new tactics seen in Ukraine and elsewhere. Russia’s relentless use of Iranian-designed Shahed drones has underscored the urgency of affordable and scalable solutions, galvanising both government interest and private capital. Against this backdrop, European start-ups such as Cambridge Aerospace in the UK and Tytan Technologies in Germany are emerging as leading innovators, attracting attention from prominent investors and developing systems designed specifically to bridge Europe’s capability gap.