The expansion of defense tech in the United States and Europe has created new transatlantic linkages.
In 2025, total investment in European defense tech companies reached nearly $9 billion, with US investors providing over 33% of the total, or roughly $3 billion.
The top five US defense tech startups have won a total of 6 contracts with European governments and formed 17 European teaming relationships.
The top five European defense tech startups have won a total of 8 contracts with the US government (plus 1 with NATO Allied Command Operations) and formed 17 US teaming relationships.
Of the top five European defense tech startups, two have established production facilities in the United States.
In the first Gauntlet challenge organized by the Pentagon’s Drone Dominance Program, the Top 11 performers selected to receive orders included two European and one transatlantic company.