Donald Trump anxiety spurs investment in European defence start-up firms
The Hindu
Investment in European defence-tech start-ups surges amid uncertainty over Trump's potential White House return and global security challenges.
Donald Trump’s potential White House return has helped spur a flurry of investment in defence-technology start-ups across Europe, according to eight prominent industry executives and investors.
The Republican presidential candidate has threatened U.S. withdrawal from NATO and said he would not defend allies that did not increase their defence budgets. He’s locked in a tight-run race with Vice President Kamala Harris in the Nov. 5 election.
Mr. Trump’s unpredictability, combined with the war in Ukraine and tensions in the Middle East, has contributed to global military spending reaching a record high of $2.4 trillion in 2023, according to the Stockholm International Peace Research Institute.
In June, the $1.1 billion NATO Innovation Fund (NIF) announced partnerships with venture capital firms and defence start-ups across Europe, aiming to bolster security on the continent.
Meanwhile, the European Union earlier this year unveiled its first ever defence industrial strategy, committing more than $1 billion towards military innovation.
While the prospect of a Trump presidency was not the only factor behind those initiatives, it has been a significant driver of subsequent investments made by governments and venture capitalists alike in manufacturers of drones, robotics and quantum computing, the eight executives said.
Operating out of Munich, Vsquared Ventures is one of Europe’s leading deep-tech investors, having recently raised a 214 million euro ($237.99 million) fund to invest in space, robotics, and other technologies.
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