Helsing, the German defense technology group backed by Spotify founder Daniel Ek, is set to raise $1.2 billion at a valuation of approximately $18 billion, making it one of Europe's most valuable start-ups. The funding round, led by US firm Dragoneer Investment Group with Lightspeed Venture Partners as co-lead, reflects growing investor appetite for defense technologies amid increased European military spending following Russia's invasion of Ukraine.

The substantial valuation increase from €12 billion less than a year ago highlights the surge in private investment toward defense innovation. Helsing evolved from AI battlefield analysis software to producing kamikaze drones and autonomous underwater vessels, securing partnerships with established contractors including Sweden's Saab while developing unmanned aircraft to accompany crewed fighter jets.

Germany's selection of Helsing for a drone deal worth up to €1.46 billion demonstrates growing credibility. Despite US-led funding, the group maintains nearly 80% European ownership, positioning it as a key player in Europe's defense tech ecosystem amid sector concerns of potential bubbles.