Innovation Europe’s Aerospace and Defence Start-up Scene

From Gerd Kielburger 3 min Reading Time

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Europe’s aerospace and defence start-up scene is experiencing an unprecedented boom in 2025. Fueled by geopolitical shifts, EU funding initiatives like Readiness 2030, and the rise of dual-use technologies, agile ventures across the continent are driving breakthroughs in autonomous systems, green aviation, and next-generation defence platforms.

Europe’s aerospace and defence innovation landscape has reached a turning point in 2025. (Source:  KI-generiert)
Europe’s aerospace and defence innovation landscape has reached a turning point in 2025.
(Source: KI-generiert)

Europe’s aerospace and defence start-up ecosystem is entering a historic growth phase. In 2025, record funding rounds, unicorn valuations, and groundbreaking prototypes are redefining the continent’s role in both global security and sustainable aviation. Geopolitical pressures, especially the war in Ukraine, have accelerated demand for scalable and cost-efficient defence technologies, while EU initiatives such as Readiness 2030 are unlocking hundreds of billions in investment.

Investors, governments, and industry players are increasingly supporting agile ventures that promise disruptive advances in propulsion, autonomous systems, surveillance, and green aviation.

The war in Ukraine has sharpened awareness of Europe’s defence gaps, driving urgent investment into drone systems, AI-powered reconnaissance, and autonomous battlefield management. At the same time, sustainability concerns are boosting ventures in hydrogen and hybrid-electric aviation. 

Initiatives like the EU’s Readiness 2030 have become central drivers, mobilising massive funding and creating favourable conditions for scaling dual-use technologies.

Many of the companies shaping this moment are young start-ups, but not all. In aerospace and defence, innovation often also comes from established players reinventing their models or accelerating new technologies. What unites them is a high-growth trajectory, breakthrough potential, and strategic relevance to Europe’s future security architecture.

The following overview highlights the top aerospace and defence start-ups, as well as a number of promising challengers rapidly gaining momentum. From Munich to Stockholm, from Lisbon to Toulouse, these ventures are setting the pace for Europe’s next era of aerospace and defence. (kib)

Europe’s Aerospace and Defence Start-up Scene

CompanyFocus AreaKey Products / FeaturesFoundedCountryWebsite
Quantum SystemsAI-driven reconnaissance dronesAdvanced defence-ready UAVs2015Germanyhttps://quantum-systems.com
TekeverSurveillance drones with AIProfitable, large-scale production, expansion in UK2001Portugalhttps://tekever.com
STARKLoitering munitions & autonomous systemsOWE-V Virtus, new plants in Munich & UK, Bundeswehr-tested2024Germanyhttps://stark-defence.com/en/
Pangea AerospaceSpace propulsion systemsReusable, sustainable fuel engines2018Spain / Francehttps://pangeaaerospace.com
Isar AerospaceLaunch vehicle for satellitesSpectrum rocket, early 2025 test flight, strong state backing2018Germanyhttps://isaraerospace.com
HyPrSpaceMicro-launchers with hybrid propulsionBaguette One2019Francehttps://hyprspace.com
Beyond AeroHydrogen-electric business jetsDesigning a hydrogen-electric aircraft, 1,500 km range, $20M Series A, sustainable aviation2020Francehttps://beyond-aero.com
HelsingArtificial-intelligence defense startupDrone prototypes, flight simulators and lines of code2021Germanyhttps://helsing.ai/
Heart AerospaceHybrid-electric regional aircraftES-30 (30-seater), $107M Series B, first flight in 20252019Swedenhttps://heartaerospace.com
DestinusHydrogen supersonic/hypersonic aircraftAutonomous flight systems, Prototype 2026, hypersonic target by 20302021Switzerland / The Netherlandshttps://destinus.com
Roark AerospaceAutonomous defence systemsDrone detection, hyperspectral imaging, €57.6M raised2023UKhttps://roark-aerospace.com/
Avalor AIMulti-domain military AI for land, sea, and air Nexus is the command and control interface for unmanned systems, connecting them across air, land and sea to provide a common operational picture.2021The Netherlandshttps://intelic.ai/
Unmanned Defense SystemsUAV and Swarm-Technology for ISTAR, Loitering munitionsAdvanced loitering munitions and ISTAR platforms, along with swarm command, control, and analysis software designed for fast-paced operations and rapid battlefield readiness, seamlessly integrate into a complete kill-chain ecosystem.2022Latviahttps://www.udefenses.com/
Blackshark3D digital twin of the Earth, scalable data/location detectionOne platform for analysts or simulations to train AI and extract 2D & 3D from any pixel source2020Austriahttps://blackshark.ai/
AronditeBattlespace Management , Multi-Domain AutonomyCobalt is Arondite's AI software platform. It acts as the connective tissue between your platforms, assets, robotic systems, autonomous systems and data.2023UKhttps://www.arondite.com/

Methodology of this list 

Focus on ‘Start-ups’ with significant developments – investments, product launches, or media presence – in 2025 or since the beginning of 2025.Criteria: Evaluation (funding, unicorn status), technological innovation (e.g., hydrogen, AI, drones), strategic relevance in the defense or aerospace sector.Sources: Renowned publications such as Financial Times, EU-Startups, Sifted, Tech Funding News, as well as Wikipedia and structured articles. All information is referenced with sources.

Conclusion

Europe is positioning itself at the forefront of global aerospace and defence innovation. Start-ups such as Quantum Systems, STARK, Heart Aerospace, and Helsing showcase how AI, drones, hybrid propulsion, and autonomous systems—supported by major funding rounds and government backing—are transforming the sector.With political initiatives like Readiness 2030 and unprecedented levels of private capital, Europe is cultivating fertile ground for security and mobility innovation. The year 2025 will be remembered as a landmark moment when Europe’s start-ups redefined the continent’s role in defence and aerospace.

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