US VCs Invest $458M in European Defense Startups as NATO Tech Fund Raises Global Tension Concerns

NATO's new venture capital fund is investing in emerging technologies such as artificial intelligence, biotechnology, and space technology, raising concerns that it could feed into the military-industrial complex and exacerbate global tensions. Critics suggest that investing in these areas through profit-driven venture capitalists may contribute to a risky arms race in big tech. Meanwhile, Dealroom reports, as cited by the Financial Times, that US funding is driving investment for European military tech start-ups. US venture capital firms made up 65% of 2024 venture capital investments in European defense startups, up from 18% in 2023, totaling $458 million, more than three times any prior year.