Germany’s Military and Defence Companies Gaining Investment
With global threats on the rise, Friedrich Merz, who is expected to become Germany’s next chancellor, has called for urgent action — declaring that Germany must take a “whatever it takes” approach to national and alliance defense. To support this, he has announced a major political deal to boost spending on defense and infrastructure by hundreds of billions of euros.
Despite being one of the leading European contributors to Ukraine, Germany’s military has historically been underfunded. The €100b fund established after Russia’s 2022 invasion has already been largely allocated, and to meet current NATO targets, Germany will require an additional €30b annually. On 18 March 2025, German voters decided to exempt spending on defence from its strict federal debt rules.
As we move further into 2025, it’s clear we can expect significant increases in military and defense investment in Germany — a trend that is also likely to be mirrored in the UK.
Challenges facing Germany’s military and defence landscape
Germany’s military, the Bundeswehr, is facing significant challenges in recruiting and retaining personnel, particularly among Gen Z — and despite efforts to modernise and expand the armed forces, high dropout rates and an ageing workforce have meant the German military is facing a labour shortage.
According to Reuters, the Bundeswehr currently has approximately 181,000 personnel, with an average age of 34. This means it’s falling short of its goal to reach over 200,000 troops by 2031.
In response to this, German Defence Minister, Boris Pistorius has advocated for the reintroduction of conscription and a substantial increase in defense spending to at least 3.5% of GDP.
Investment into Germany’s military and defence companies will grow…
Boris Pistorius’ proposal aims to boost military personnel to potentially over 465,000, ensuring Germany meets NATO’s defense requirements amid growing security concerns.
Alongside this, Fredriech Merz has announced a significant political deal to increase defence spending by hundreds of billions of euros. This will include a €500b fund to repair Germany’s aging infrastructure, including roads and railways, loosening Germany’s strict “debt brake” to allow more defense investment — and exempting defence spending above 1% of GDP from debt restrictions.
The Top Five Automotive Companies in the UK and Germany
Germany’s military and defence companies gaining investment
Here we’ve looked at German military and defence companies that have received funding in the past 12 months. Companies have been ordered by most recent fundraising.
To be included in our list, companies must be headquartered in Germany, listed as ‘Active’ on the German Handelsregister, and be classified within the military and defence industry using Beauhurst’s industries dataset.
The data for this report was found using the Beauhurst platform, and is accurate as of 17 March 2025
Alpine Eagle
Year of incorporation: 2023
Date of investment: 5 March 2025
Amount raised: £8.58m
Alpine Eagle is a Munich-based defence technology startup specialising in air-to-air counter-drone systems. Its flagship product, the Sentinel Counter-UAS System, uses advanced sensors, AI, and machine learning to detect, classify, and intercept hostile unmanned aerial systems, such as small drones.
The company went through its first funding round earlier this year, securing £8.58m. The investment came from US-based General Catalyst Partners, France-based HCVC, and UK-based IQ Capital Fund, as well as other funders.
Ubitium
Year of incorporation: 2024
Date of investment: 21 November 2024
Amount raised: £2.94m
Ubitium is a German semiconductor startup developing a universal RISC-V microprocessor designed to handle diverse computing tasks. The microprocessor offers several potential applications in military and defence — one key component is its use in drones and robotics used for surveillance, reconnaissance, and logistics operations.
Based in Dusseldorf, the company went through its first-ever funding round in November 2024, raising £2.94m. The investment came from a number of investors including Inflection Ventures, the KBC Focus Fund, and Runa Capital.
STARK
Year of incorporation: 2024
Date of investment: 10 October 2024
Amount raised: £11.7m
STARK specialises in the development of autonomous attack drones, particularly designed for surveillance, reconnaissance, and precision strikes. Its key product, the SkyFall kamikaze drone, is engineered to target and destroy armored vehicles.
Established in 2024 and headquartered in Munich, Germany, STARK has rapidly positioned itself as a key player in the German defence sector. It has already received £11.7m in investment just eight months after its incorporation.
Quantum Systems
Year of incorporation: 2015
Date of investment: 24 September 2024
Amount raised: £30.3m
Quantum Systems, founded in 2015 and based in Gilching, Germany, manufactures advanced unmanned aerial systems (UAS) for both commercial and governmental uses. Its drones are designed for tasks such as aerial mapping, surveying, and intelligence, surveillance, and reconnaissance operations.
In its second fundraising, the company secured £30.3m — raising its total raised to £85.4m. Since its 2024 funding round, the company has gone on to acquire AirRobot, a German drone solutions company.
Helsing
Year of incorporation: 2021
Date of investment: 22 August 2024
Amount raised: £382m
Founded in 2021, Helsing focuses on integrating advanced AI into defense systems to improve operational effectiveness and resilience. According to tech.eu, the company has been active in supporting Ukraine since 2022, providing capabilities and technology for frontline operations.
The 2024 fundraising marks the company’s third funding round, and in total it has now raised £694m.
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