German defense tech startup Helsing is in talks with Silicon Valley investors, including Accel and Lightspeed Venture Partners, to raise nearly $500 million, valuing the company at $4.5 billion. The firm is set to become one of Europe's most valuable AI startups, showcasing the growing interest of traditional venture capitalists in defense technology companies.
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Founded in 2021, Helsing specializes in AI-based defense software. The company utilizes AI to process vast amounts of data generated by sensors and weapon systems to provide real-time battlefield intelligence and assist military decision-making. Its software is also used to develop AI capabilities for Ukrainian drones. Helsing has entered into collaboration agreements with several prominent European defense contractors, including Germany's Rheinmetall and Sweden's Saab, to integrate AI into existing platforms such as fighter jets. The startup is also working with Airbus to develop AI technologies for both manned and unmanned systems.
Venture capitalists have long been cautious about investing in defense technology companies, but this stance is rapidly changing. Tensions between the U.S. and Europe are prompting nations to continually increase defense spending.
This year, NATO began investing its new €1 billion "Innovation Fund" in European tech companies. Europe is also "catching up very quickly" with U.S. investments in defense and dual-use technologies, as evidenced by the war in Ukraine.
Key Points:
- Helsing is in talks with Accel and Lightspeed Venture Partners to raise nearly $500 million, valuing the company at $4.5 billion.
- The company will become one of Europe's most valuable AI startups, reflecting the growing interest of traditional venture capitalists in defense technology companies.
- Venture capitalists have long been cautious about investing in defense technology companies, but this attitude is rapidly changing.