Aaron Kirchfeld and Sylvia PfeiferJul 27, 2026 – 6.07pmFarnborough | The world’s largest defence companies have invested a record amount into military start-ups this year as they try to adapt to the rapidly evolving face of modern warfare.So-called defence primes, with longstanding ties to western governments and militaries including Lockheed Martin and BAE Systems, have participated in a record $US4.1 billion ($5.9 billion) in venture capital rounds so far this year, according to data compiled by Dealroom.Financial TimesSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Defence giants provide record backing for military start-ups
As drones and autonomous systems transform the battlefield, traditional defence companies are starting to act more like venture capitalists.
TL;DRAI
Defence primes invested record $4.1 billion in military start-ups in 2026, accelerating adoption of venture-backed innovation for modern warfare. The shift signals incumbents now access cutting-edge tech through equity stakes rather than traditional procurement, reshaping defence R&D.
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