Venture capital funding for defense technology companies has surged to $12bn this year, driven by escalating global conflicts and increased military spending. Investors are pouring money into startups developing everything from cybersecurity solutions to autonomous weapons systems, attracted by the sector's rapid growth and government contracts.

The funding rush comes as traditional defense contractors face pressure to modernize legacy systems while new entrants capitalize on battlefield innovations. This influx of capital has already exceeded previous annual totals, with some deals reaching unicorn valuations in record time.

However, industry observers warn that soaring valuations may be creating a bubble reminiscent of the dot-com era. Several prominent defense tech startups have seen their worth multiply rapidly, raising questions about sustainability and exit strategies in a market traditionally dominated by established players.

The trend reflects broader shifts in how investors view national security as both a moral imperative and profitable opportunity. With geopolitical tensions showing no signs of abating, defense technology may represent one of the few growth sectors where public and private interests align compellingly.