Munich, May 17 – Helsing, a Munich-based defense technology startup, is reportedly on the verge of securing an additional $1.2 billion (just over one billion euros) from investors. This move would propel the company’s valuation to an estimated $18 billion, making it the most valuable German startup, surpassing software house Celonis.
Record Funding Round for AI Defense Innovator
The Financial Times, citing sources close to the negotiations, reports that the funding round involves North American investment firms Dragoneer and Lightspeed Venture. Dragoneer has a history of early investments in successful ventures such as Spotify, Uber, Airbnb, and OpenAI, the developer of ChatGPT. Lightspeed Venture is recognized as a pioneer in Artificial Intelligence, having funded companies like Anthropic and Elon Musk’s xAI, known for its chatbot Grok.
Helsing, founded in Munich in 2021, focuses on developing AI for a range of military applications, including tanks, submarines, and aircraft. In 2023, the German federal government commissioned Helsing to equip the Eurofighter and the planned future combat jet FCAS with its AI technology. Additionally, Helsing manufactures drones, some of which are currently deployed in Ukraine. The company recently secured a major contract from the German Bundeswehr for its drone technology.
Global Expansion and Production Facilities
The Munich-based company is also developing an unmanned combat jet. A year ago, Helsing acquired Grob, a Swabian aircraft manufacturer based in Tussenhausen. In March, the startup secured a 25-hectare plot of land in Hallbergmoos for the establishment of a large-scale production facility. Furthermore, Helsing is planning a factory in England dedicated to AI-controlled underwater defense systems designed to counter Russian submarines.
Helsing Poised to Overtake Celonis as Germany’s Top Unicorn
According to an analysis by the consulting firm EY, Helsing was already the German startup that received the largest capital injection in 2025. In June of that year, Helsing secured 600 million euros in a financing round, with Spotify co-founder Daniel Ek among the investors.
Should the company successfully raise the additional $1.2 billion, its enterprise value is projected to reach $18 billion. In comparison, in 2025, the Munich-based software company Celonis held the title of Germany’s most valuable unicorn, with a valuation of $13 billion, according to the industry association Bitkom. Unicorns are defined as startups valued at over one billion dollars.
Bavaria Dominates German Startup Landscape
Bavaria continues to be a hotbed for leading German startups. Besides Helsing, the region is home to companies like the online service provider Personio, Flixbus parent company Flix, Gilching-based drone manufacturer Quantum Systems, and the originally Munich-founded neobroker Trade Republic, now headquartered in Berlin.
Overall, Munich and Berlin dominate the German startup scene. In 2025, Berlin-based companies received 2.7 billion euros in fresh capital, while Munich-based companies attracted 2.5 billion euros. However, when including startups from the rest of Bavaria, the Free State’s total reached 3.3 billion euros, significantly outpacing Berlin. Baden-Württemberg followed in a distant third place with 0.9 billion euros. Despite these successes, German startups generally face a challenge due to a relative lack of large-scale investors.
While software remains the dominant sector for investment, attracting nearly 2.7 billion of the total 8.4 billion euros invested in startups in 2025, there is a growing trend of capital flowing into defense companies. Although EY reported approximately 450 million euros in venture capital for the defense industry, the two Munich-based drone companies, Helsing and Quantum Systems, alone closed financing rounds totaling nearly one billion euros during this period (Helsing with 600 million and Quantum Systems with 340 million). With Helsing’s potential billion-dollar round, the defense sector is expected to attract even more attention from investors.
