Helsing secures $1.8 billion, reaching an $18 billion valuation.

      Helsing, based in Munich, has secured $1.8 billion at a valuation of $18 billion, positioning itself as the largest defense startup in Europe. This funding reflects a confidence in sovereign AI, with a significant portion sourced from American investors.

      On Monday, Helsing announced it had finalized a $1.8 billion Series E round, increasing its valuation to $18 billion. The offering was substantially oversubscribed, with Helsing stating that " investor demand significantly exceeded the available allocation." Initially reported at $1.2 billion in May, the round swelled to $1.8 billion at the same $18 billion valuation shortly before closing, according to Tech Funding News. Investors contributed an additional half a billion dollars without altering the share price.

      Rapid growth

      Founded in 2021 by Gundbert Scherf, Torsten Reil, and Niklas Köhler, Helsing develops AI software and hardware tailored for European militaries. Its systems integrate data from drones, radar, satellites, and cameras into a cohesive real-time overview, while retaining human oversight for critical decisions.

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      Stay updated on the latest happenings in the EU tech landscape, insights from our insightful founder Boris, and intriguing AI art—delivered to your inbox for free each week. Sign up now! The range of products has expanded remarkably, featuring the Altra battlefield software, the HX-2 strike drone already deployed in Ukraine, the CA-1 Europa aircraft, and underwater surveillance systems. The company has around 900 employees with offices across Germany, the UK, France, and the Baltics.

      The valuation has surged in parallel. After raising €600 million in June 2025, Helsing was valued at approximately €12 billion, but it has now skyrocketed to $18 billion within a year—a third significant increase in less than two years.

      Sovereignty meets American investment

      The funding round was led by Dragoneer, with Lightspeed as a co-lead. The appeal centers around sovereignty: European nations opting for domestically developed defense AI instead of importing from the U.S.

      However, the capitalization table complicates this narrative. Three of the largest contributions came from JPMorgan Chase, the growth division of Goldman Sachs, and the Canada Pension Plan. Although Helsing claims to be "predominantly European-owned," it does not specify a figure. Co-CEO Torsten Reil noted in May that the company was roughly 80 percent European-owned, before the round grew by an additional half a billion dollars.

      Spotify’s Daniel Ek continues as co-chair alongside former Airbus CEO Tom Enders, with returning investors including Prima Materia, Accel, and Greenoaks.

      A competitive, well-funded environment

      This influx of capital highlights a broader trend in European defense investment. German competitor Quantum Systems raised $1.2 billion at an $8 billion valuation this month, while Stark Defence secured €500 million in June. NATO rearmament has accelerated interest in battlefield AI, making it one of Europe’s most dynamic sectors.

      Despite its progress, Helsing still lags behind U.S. competitor Anduril, which raised $5 billion in May at a $61 billion valuation—more than triple Helsing’s worth. Nevertheless, the disparity underscores Europe's desire for its own champion, with the push for sovereign capabilities increasingly apparent.

      Concerns over the deal

      Not all employees at the company are celebrating the news. Shortly before the funding round, Helsing transitioned its staff from a share-option scheme to a virtual option plan, as reported by Bloomberg. This new approach ties employee payouts to share price without granting direct equity, and the earnings are taxed as income.

      Some employees have sought legal counsel to contest the change, with a compensation expert telling Bloomberg, “VSOPs are rarely better for the employee.” This shift coincided with the move to a European corporate framework, a step many companies take prior to going public. Given its trajectory, a stock listing seems likely; however, it raises the question of whether a firm overly dependent on American investment can continue to assert its position as Europe’s sovereign solution.