Venture capital in Defense: why innovation is exploding here now
In a series of blog posts, Marco Coolen provides a glimpse into his work as a Dutch and European patent attorney at AOMB.
Published on March 23, 2025
Marco, a patent attorney at AOMB since 2013, shares his expertise on IO+ about patents—how they work, why they matter, and when they lose their value.
Venture capital in Europe has a new favorite: the Defense industry. In 2024, investments in startups in this sector increased by 24% to $5.2 billion. This means that defense technology is growing faster than AI - astonishing. But what is driving this enormous growth? And what opportunities does it offer entrepreneurs?
According to the NATO Innovation Fund and Dealroom, defense, security and resilience are sectors that continue to grow structurally. Investments in these areas increased by 30% in 2024, with almost a third of all deep tech funding going to this sector.
Marco Coolen, photo © Bart van Overbeeke
Startups are playing an increasingly important role in this. Whereas military technology used to be developed mainly by governments and large companies, we are now seeing a wave of young companies introducing groundbreaking innovations. These include:
- AI chips specifically for advanced military applications
- Quantum computing for encryption and advanced calculations
- Autonomous systems such as drones and unmanned vehicles
With increasing geopolitical tensions and the need for advanced technologies, the demand for defense innovations is growing faster than ever.
Dutch cities as emerging hubs
The Netherlands is starting to play an increasingly important role in this transition. By 2024, Eindhoven, Rotterdam and Amsterdam were in the top 10 European VC hubs in the field of defense and security. This means that not only established players, but also Dutch startups in this sector can attract plenty of funding.
Munich has emerged as the hotspot, with $996 million in investments in 2024. It is striking that almost half of this went to Helsing, an AI company that focuses on defense applications. This shows that the overlap between AI and defense is becoming increasingly important.
The World of Patents
With the help of Dutch and European patent attorney Marco Coolen (AOMB), we better understand the world of patents. How do they work, why are they important, and when do they lose their usefulness?
View The World of Patents SeriesExplosion in patents
Not only funding but also patent activity in defense is skyrocketing. Between 2000-2004 and 2020-2024, European defense patents increased by 167%, from 10,582 to 28,307. This growth rate is considerably higher than in other sectors.
What does this mean?
- There is large-scale investment in new technologies.
- Patents protect these innovations from competition.
- Startups that are smart about how they handle intellectual property can put themselves in a unique position.
A strong patent strategy is therefore not a luxury in this sector, but a necessity.
Opportunities for entrepreneurs
All signs point to green for the defense sector: more investments, more innovation and a record number of patents. For entrepreneurs, this means enormous opportunities, provided you have a clear strategy.
Whether you are active in AI, hardware, software or cybersecurity, the defense industry offers a unique opportunity to grow. The question is not whether this market will continue to grow but how you can respond to it intelligently.
The defense sector in Europe is experiencing an unprecedented growth spurt. With billions in venture capital, fast-growing start-ups, and an explosion in patents, the opportunities for innovative companies are more significant than ever. Those specializing in this now can get a head start in a market that is not expected to cool down anytime soon.
VDL NedCar converted into drone factory
According to Minister Brekelmans, the collaboration with VDL will be “the flagship of the collaboration between Defense and businesses”.