LONDON - Donald Trump's potential White House return has helped spur a flurry of investment in defence-technology startups across Europe, according to eight prominent industry executives and investors.
Meanwhile, the European Union earlier this year unveiled its first ever defence industrial strategy, committing more than $1 billion towards military innovation. "We want to see faster cycles, broader experimentation, and better capabilities. The planning in a ministry is so slow, and the VC world is one potential answer to this problem," he added.
Ricardo Mendes, CEO of Lisbon-based drone manufacturer Tekever, which has contracts with Britain, Ukraine, the EU and others, said:"A second Trump presidency means different things for American and for European defence companies. There’s a structural change in the defence sector here." Asked if the potential for a Trump victory in November was influencing defence investment, CEO Stefan Roebel said:"Absolutely. That's something everybody has in the back of their heads. Europe needs to up its investment in defence, and you're seeing a shift in momentum now."Around the world, VC funding faced a major downturn in 2023 as investors waited to see how their pandemic-era ventures would play out against a backdrop of rising interest rates and public market volatility.