The conflict between Russia and Ukraine has benefitted the EU defense industry. Numerous European companies have attracted significant investment amid the tense geopolitical situation, Bloomberg reported.
Last year, when the conflict escalated, investments in European defense-related tech companies grew at a record pace. EU aerospace and defense sectors attracted almost €780 million from private investors in 2022.
Quantum-Systems, a drone manufacturer that develops unmanned aerial vehicles that can be charged and deployed without human operators, received $17.5 million in investment. Overall, eurozone countries earmarked funds for 61 defense projects, with €1.2 billion going to the European Defense Fund (EDF).
The outbreak of the conflict changed the investor landscape drastically, experts say. European VC firms, which previously reduced investment into defense companies, ramped it up in 2022. They are focused on dual-use technologies that can be used for both civilian and military applications.
