The world’s largest defence companies have invested a record $4.1bn in military start‑ups this year, according to Dealroom data. Primes such as Lockheed Martin and BAE Systems are seeking exposure to disruptive technologies highlighted by recent conflicts.

At the Farnborough airshow, half of the 1,636 exhibitors were defence firms, and total global defence deals have already topped $40bn, on track to exceed the 2019 record of $59bn. Defence‑tech start‑ups raised $39.8bn so far, with notable deals including Thales’s €3.9bn purchase of Exail and Lockheed’s $3.45bn acquisition of Ultra Maritime.

European primes are also ramping up venture arms: BAE committed €50mn to Lakestar and Expeditions funds, while Lockheed plans to invest at least $100mn in UK/European start‑ups and grow its fund to $1bn. Airbus became anchor investor in a €500mn E2D fund targeting air, maritime and space tech. R&D spending by 13 top arms makers rose over 25% to $11.6bn from 2021‑2026.