Lisbon is among the top European cities when it comes to European venture capital investment in defence tech companies, according to the report ‘State of Defence Tech 2025’ from Dealroom that looks at investment that is being channelled by VCs to the defence startup ecosystem.
With Europe more committed to defence, Venture Capital in defence techs has more than doubled this year with a growth of 132% to US$1.5 billion. It is estimated that, until the end of the year, EU VC investment in the sector will rise to US$2.3 billion.
Portugal stands out with Lisbon appearing in the Top 10, in eighth position, with €98 million raised since 2019, above Amsterdam (€52 million) and Madrid (€47 million).
Overall per region, Southern Europe appeared in third position after Germany and the UK, but looking at cities, Munich dominated – the city that hosts Helsing – followed by London and Paris, with US$2 billion and US$485 million raised, respectively, since 2019.
VC investment has been growing in Europe over the past three years, a situation that is related to the war in Ukraine. Since the Russian invasion, investment has risen from US$432.9 million to US$691.4 million in 2023, jumping to US$1 billion last year and, this year by September, it had already exceeded that threshold, settling at US$1.5 billion.
Much of the investment is made by funds based in Europe. In 2025, they represent more than half (51%) of the investment, with 45% based in the United States, and there has been an increase in the number of investors in the last three years: from 184 in 2023, to 221 the following year and 225 by September, with Dealroom estimating that this number will rise to 321 by the end of the year.
