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Martin Buhl warns of capital shortages in early-stage defense sector
Martin Buhl, a partner at the early-stage investor Helantic, highlights a significant disparity in the defense market's capital distribution. While large-scale growth rounds for companies like Helsing and Quantum Systems suggest an abundance of capital, Buhl notes that most funding is concentrated among a few visible champions.
In contrast, European early-stage funding for the defense, security, and resilience sectors saw a decline in 2025. This has created a shortage of risk capital for the emergence of new technologies. Buhl emphasizes that for defense startups, particularly those developing hardware, success requires more than just advanced technology; it necessitates scalable industrialization, access to test infrastructure, production facilities, and sufficient working capital.
Buhl also warns that rising defense expenditures and high valuations do not inherently ensure sustainable business models. He anticipates a market consolidation even if peace is achieved.
Entities
Helantic · Helsing · Martin Buhl · Quantum Systems · Stark
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] High valuations and rising defense spending do not automatically guarantee a sustainable business model. www.leinetal24.de · www.hna.de · www.merkur.de
- [● 3 SOURCES] European early-stage funding in the defense, security, and resilience sectors declined in 2025. www.leinetal24.de · www.hna.de · www.merkur.de
- [● 3 SOURCES] Most capital in the defense market is concentrated on a few visible champions. www.leinetal24.de · www.hna.de · www.merkur.de
- [● 3 SOURCES] A market consolidation is expected even in the event of peace. www.leinetal24.de · www.hna.de · www.merkur.de
- [● 3 SOURCES] The defense market currently experiences a simultaneous surplus and shortage of capital depending on the segment. www.leinetal24.de · www.hna.de · www.merkur.de