Europe’s defence start-ups struggle for credit despite looser bank policies
HSBC and Revolut among lenders restricting lending to sector in a sign of hurdles to rebuilding region’s arms industry
HSBC and Revolut among lenders restricting lending to sector in a sign of hurdles to rebuilding region’s arms industry

Industry executives say key aim is to secure European funding as well as contracts with governments

While problems with the financing source are emerging, the region needs to diversify from bank funding

Smaller groups seek alternative funding with traditional banks held back by ESG lending rules

Russia’s war in Ukraine and fears over US security relationship drive wave of VC funding

Revolut backer Balderton Capital says continent needs to accelerate development of space and defence industry

Concern mounts that not all newcomers to the sector since Russia’s full-scale invasion of Ukraine will survive