Europe's push to rearm is creating a boom in defence tech interest. Sifted reports that amid mounting geopolitical uncertainty, the EU is gearing up to spend sums on defence that would have been almost unimaginable a decade ago. That has drawn a wave of startups and investors into a sector long seen as difficult to enter.
Yet the mood is sobering. The article describes a reality check for European defence tech: funding is increasing, but startups face hard questions about whether the money will actually reach them, whether procurement processes can keep up, and whether the ecosystem can scale. The sector is being forced to move from pitch to product.
Consolidation is also part of the picture. The report notes that some defence tech companies are being absorbed into larger groups, and that investors are becoming more selective. The message is that Europe's defence tech moment is real, but it is no longer enough to have a good story.