Despite a slow start, there clearly is investor appetite in defense tech.

Helsing, which develops artificial intelligence software for defense, raised approximately $489 million in funding led by General Catalyst that values the company at $5.4 billion.

The Germany-based startup designs software that helps boost weapons capabilities in drones and jet fighters and improves battlefield decision making.

The company has been active in Ukraine and the Baltic states as eastern European nations fear further aggression from Russia.

The announcement comes just as the NATO summit in Washington D.C. is being held.

Helsing is no stranger to large rounds. In September 2023, the company raised a round worth approximately $227 million, also led by General Catalyst. Founded in 2021, the company has raised approximately $827 million, per Crunchbase.

Money battle?

The new round for Helsing is the second largest ever in defense tech, per Crunchbase data.

Software and hardware defense tech startup Anduril closed a massive $1.5 billion Series E in late 2022, which remains the largest. Earlier this year, it was reported the startup was raising another $1.5 billion round, this time at a $12.5 billion valuation.

However, even with the round, global venture dollars have not poured into defense tech this year the same as last — despite many conflicts showing few signs of being diffused.

So far this year, defense tech startups have raised only $827 million, per Crunchbase data. Last year, such startups collected nearly $2 billion.

However, this round shows it only takes one big fundraise in this sector to get right back on track — or even ahead — of last year’s pace.

Pro query:

Global Defense Tech Funding

Related reading:

​​Defense Tech Funding Slows At Start Of Year

Illustration: Dom Guzman