Germany-based startup Helsing, specializing in artificial intelligence (AI) software for defense, has lately secured $489 million in a funding round led by General Catalyst. The fresh capital has increased its valuation to $5.4 billion and this highlights growing interest of investors in defense technology.
Helsing was founded in 2011 and within a very short span of time it established itself as a key player in the defense tech arena. Its AI software enhances capabilities of drones and jet fighters. The technology also improves battlefield decision-making processes. It is highly valuable in those regions which are equipped with heightened security concerns.
The announcement of new investment coincides with the NATO summit in Washington D.C. that highlights the strategic importance of advanced defense technologies. Helsing earlier secured $227 million funding in September 2023. The round was led by General Catalyst.
The latest round represents second-largest fundraising effort in the defense tech sector. The larger round was achieved by software and hardware defense tech startup Anduril. It closed at $1.5 billion in Series E in late 2022. The company is learned to be raising another $1.5 billion funding later this year and thereafter its valuation would reach at $12.5 billion.
The overall venture capital investment in defense tech has witnessed a sharp decline in 2024. Defense tech startups have collectively raised just $827 million. It is a drop by about $2 billion compared to 2023.
The successful funding round of Helsing reveals that just one significant fundraise is enough to shift momentum and potentially surpass the previous pace. Geopolitical tensions have continued in recent years and this has led to influencing the defense priorities. Investments in advanced technologies will be crucial lately.
