Reference News Network, October 6 report. According to the website of the U.S. "New York Times" on September 30, in a world more prone to conflict, governments around the globe are spending tens of billions of dollars preparing for high-tech warfare. This approach is changing the way modern nations deploy their armed forces.

The report said that in Europe, Russia is using drones to bomb Ukraine, even testing NATO's resolve. New generation startups are marginalizing traditional weapons manufacturing methods. Private investors no longer wait for government funding but invest themselves to accelerate weapon development and attract buyers to follow.

Gundbert Schäfer, former advisor to the German Ministry of Defense and partner at McKinsey & Company, said: "This is a rather significant revolution in the defense industry, a completely different business model."

Helsing, a company headquartered in Munich, is supplying drones to Ukraine, updating them every few weeks to respond to technological and strategic changes. Helsing currently has a valuation of 12 billion euros, making it one of the most valuable startups in Europe.

Data from McKinsey & Company shows that global venture capital investment in defense-related companies jumped to 31 billion dollars last year, a 33% increase from the previous year. Investment in European defense startups was five times that of the previous three years from 2021 to 2024.

This funding is pushing various possibilities to the limit: low-cost missiles and drone interceptors, AI fighter jets and naval vessels, "cockroach" spies with remote control devices, and surveillance cameras collecting data in areas difficult for humans to access.

The Ukraine conflict is a turning point for the defense industry, especially for Europe. Torsten Riehl, co-founder of Helsing, said, "Previously, no European venture capital firm was interested in the defense industry," now there is a gold rush, everyone wants to invest in the defense industry.

EuroAres Ltd., a German defense company with several decades of history, was acquired by a Swedish private investment company in 2021. The new owner originally wanted to produce power systems for submarines, but the Ukraine conflict completely changed the company's direction. Now, the company is carrying out a "new mission" - developing underwater autonomous cruisers capable of monitoring undersea cables.

After the outbreak of the Ukraine conflict, strong anti-militarism sentiment in Europe also gradually changed. Trump's refusal to provide free military protection to Europe led European countries to swear to make large investments in defense, triggering an investment boom.

War provides a real scenario for weapon experimentation. The new business model may bring drastic changes, comparable to the transformation from cavalry to armored tanks in World War I. Technologies such as robotics, artificial intelligence, and computer vision have become more accessible, and mass production will make products increasingly cheaper.

Continuous software updates can be compatible with a range of existing weapons. For example, in May this year, Helsing conducted a test flight, allowing its artificial intelligence system to temporarily control a Saab Gripen-E fighter jet over the Baltic Sea.

Autonomous weapons do not require complex and expensive safety devices to protect the operator's life, so they are cheaper and simpler. A drone made of plywood and foam costs only a few hundred dollars, but it can destroy a tank worth millions of dollars.

Ukraine has established a large and advanced drone industry, playing the role of a battlefield laboratory. About 80% of targets on the battlefield are destroyed by drones.

The traditional large defense contractors often do not allow them to quickly adopt emerging technologies because they need several years or decades to develop next-generation equipment. For example, Lockheed Martin won the contract to develop the Joint Strike Fighter in 2001. Production began in 2006, with the cost of one aircraft about 80 million dollars.

The approach of defense startups is completely different. Dino Mavrikas, co-founder of Saronic Technologies, said: "We are building ships with our own money." In April this year, the company acquired a shipyard in Louisiana that was about to go bankrupt, and it is expected that the company's unmanned ship "Pirate" will be launched in December.

However, founders of defense startups also say that merely having the right technology is not enough. Companies that both master military technology and truly understand the procurement process are limited. (Translated by Pan Xiaoyan)

Original: https://www.toutiao.com/article/7557948558331232787/

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