A New Era of Investment in National Security

National security increasingly depends not only on whether innovative technologies can be created and financed, but on whether they can reach real-world use. For the defense innovation market, that makes rapid testing in operational conditions and small-scale purchases by the defense industry and armed forces essential.

The relationship between military and civilian technology is also changing. Technologies originally developed for military needs, such as GPS, Kevlar and radar, later found broad civilian applications in transport, logistics, navigation, protective clothing, sports, medicine and microwave ovens. Today, the flow is increasingly moving in the opposite direction, with the defense sector adopting solutions first developed in civilian markets.

The shift is drawing more investors to advanced technology. Venture capital funds are particularly well placed to participate because they bring sector expertise and patient capital, and their presence in the European market is growing. Innovative defense companies have raised about 65 billion zlotys this year, with more than half going to leaders including Quantum Systems, Helsing and STARK. The scale of the deals suggests that defense technology is moving beyond a niche market and becoming a significant focus for private capital.

Poland is seeing a similar pattern. Deep-tech companies have attracted some of the country’s largest financing rounds in recent years, including ICEYE and a growing group of space companies such as listed firms Creotech, Scanway and Vigo Photonics. The Polish Development Fund launched its PFR Deep Tech program last year and plans to direct at least 1.2 billion zlotys to startups through funds including Expeditions and Balnord. The article also points to investments in Lysk, Microamp and Satim, as well as growing involvement from traditional defense contractors. According to Dealroom data cited in the article, global defense primes participated in startup funding rounds worth more than $4 billion in 2026, including Lockheed Martin, BAE Systems and Airbus. In Poland, WB Electronics’ partnership with the Polish Armaments Group is cited as an example of cooperation between private technology companies, state entities and the defense sector.