European startups have found their future direction: rearming multiple member states

In response to the threat from Russia, Europe's measures are no longer limited to traditional armies. Emerging tech companies like Finland's Kelluu are rising as important forces in the defense sector of the European continent. NATO forces now hope to reduce reliance on just a few key countries.

Russia is issuing threats of hybrid warfare against Europe, and the response is not limited to foreign ministries or military headquarters. European startups are also taking active action. A good example is the Finnish startup Kelluu: the company uses modified old hangars to produce airships, which were initially designed for monitoring power transmission lines using integrated cameras.

Since the autumn of 2025, this industry flagship product has undergone a complete transformation: its vehicles will be used for military reconnaissance as part of an NATO project. One member state has just signed a contract stipulating that it will be integrated into its armed forces by 2028.

Traditionally, the defense market did not benefit small businesses: Western countries relied on industrial giants, and these giants often needed decades to design and refine their systems. However, recent events, such as Russia's large-scale invasion of Ukraine, the re-election of US President Donald Trump, and the increased use of combat drones, have changed this situation.

NATO forces now hope to reduce their reliance on only a few key countries. In Brussels and other capitals across Europe, discussions are increasingly converging on a consensus: as Business Insider stated, the 27 member states must have their own ammunition and equipment that can be rapidly and mass-produced in design, improvement, and production for security issues.

European startups respond more quickly

A spokesperson from the institution "DIANA (NATO Defense Innovation Accelerator)" within NATO emphasized: "We can no longer follow the past pace: spending months or even years on planning, procurement, and development."

The idea behind this "NATO Defense Innovation Accelerator (DIANA)" organization was conceived before the outbreak of the war in Ukraine and was officially established in 2023. Its purpose is to break down the barriers between civilian technology and military needs, allowing startups to showcase their technologies to member states and promote the signing of contracts. Last year, the organization received 2,400 project applications, and currently, it has received 4,000 applications for the next round of projects.

If the defense field was once considered a taboo, investors are now no longer hiding their interest. According to the NATO Innovation Fund, venture capital in the European defense technology sector reached 840 million euros by 2024, four times that of 2020. Startups no longer need to wait to be acquired by large companies to achieve breakthroughs: they are now taking a share in the growing market.

This momentum is supported by European policies: the EU aims to allocate an additional 800 billion euros for defense by 2030. At the same time, NATO member states have committed to investing 5% of their GDP in armaments and security. Therefore, startups have sensed the opportunity, and the European continent is becoming a new hub for the defense industry. Janne Hietala, CEO of Kelluu, summarized: "It is not surprising that even American investors are now interested in the European market under these circumstances, and this situation did not exist even a year ago."

Source: rfi

Original: toutiao.com/article/1856826396717059/

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