Defense AI startup Helsing has raised €450 million ($487 million) in a Series C financing round led by General Catalyst. The company now plans to expand its presence in European nations bordering Russia. The announcement came during NATO’s annual summit in Washington, D.C., where the Russian invasion of Ukraine dominated the agenda.
Baltic Expansion Amid Rising Tensions
As part of its strategic move, Helsing has established a new entity in Estonia and plans to invest €70 million in Baltic defense projects over the next three years. Headquartered in Germany, with offices in Munich, London, and Paris, Helsing aims to leverage the new funds to enhance its AI capabilities and expand its 300-strong workforce.
Revolutionary AI for Defense
Helsing specializes in developing AI software that processes information from defense systems, enhances the capabilities of drones and jet fighters, and improves battlefield decision-making.
“Ukraine has effectively utilized technology to defend against the full-scale Russian invasion,” said Gundbert Scherf, Helsing’s co-chief executive officer, in an interview with TechCrunch. “Helping in that effort and executing our mission to use AI to protect democracies has been a significant driver for us.”
Commitment to European Values
“We’re a company founded on European values and defending European interests and democracies,” Scherf continued, discussing the expansion into Estonia. “Estonia, a leader in technology with a Prime Minister committed to protecting European democracies, was a natural starting point.”
Estonian Prime Minister Kaja Kallas welcomed Helsing’s presence, emphasizing the need for action. “We need actions, not just words,” she stated.
Addressing the Growing Threat
Co-CEO Torsten Reil highlighted the urgency of the situation. “Putin has increased his defense budget to 7% of GDP. It’s clear the goal extends beyond Ukraine. We feel a sense of urgency and responsibility to create a capability gap to deter and defend Europe and NATO’s eastern flank.”
Advanced AI and Strategic Partnerships
When asked about the source of Helsing’s AI compute power, Reil mentioned a blend of in-house and third-party capabilities. He emphasized Project Centaur, a reinforcement learning initiative aimed at revolutionizing air combat AI, which requires substantial computational resources.
Helsing has secured significant deals with Airbus SE and defense ministries in Germany and Ukraine. Notable projects include the German Eurofighter Electronic Warfare upgrade, the AI infrastructure for the Future Combat Air System (FCAS), and several classified contracts in maritime and land domains.
Rising Valuation and Investor Confidence
According to a source, the latest funding round values Helsing at approximately €4.95 billion ($5.4 billion), though the company has not commented on its valuation.
The defense tech sector is attracting increased interest from Western investors, driven by concerns over Russia and China. Silicon Valley invested nearly $35 billion in defense tech startups in 2023, with over $9 billion this year, according to PitchBook.
A Pioneering Force in European Defense Tech
While European government defense spending lags behind the U.S., Helsing is setting a benchmark. The company has raised €769 million to date from investors including Spotify founder Daniel Ek and Swedish defense supplier Saab AB. Other backers in the latest round include Accel, Lightspeed Venture Partners, Plural, Greenoaks Capital Management, and Silicon Valley investor Elad Gil.
Jeannette zu Fürstenberg, managing director and head of Europe for General Catalyst, expressed confidence in Helsing’s future. “As we witness battlefronts on European soil for the first time in decades, the role of companies like Helsing has never been more critical.”
With its latest funding and strategic Baltic expansion, Helsing is poised to play a pivotal role in shaping the future of defense technology in Europe.
