VCs across Europe are increasingly keen to invest in defence tech, striking deals and even angling to raise dedicated funds to capitalise on the recent funding frenzy. Blossom Capital is dipping into this space, signalling a shift in portfolio strategy.

The VC is looking for companies that merge cutting‑edge technology with clear commercial upside. They favour teams that can deliver scalable solutions for both government and commercial customers, and that possess strong IP and a track record of execution.

Dealmakers are ready to commit significant capital, often exceeding prior rounds – a trend highlighted by recent transactions such as the 99-03 deal and a $915i investment. They also value deep expertise and long‑term relationships that can secure multi‑year contracts.

Given high barriers to entry, long‑term revenue streams, and the strategic importance of defence, VCs see this sector as a robust avenue for stable, high‑return investment.