DefenseTech on the rise - new playing field or area of tension for start-ups?
Just a few years ago, the idea of developing military technologies as a start-up was hardly conceivable for many founders and investors. The term "defense tech" had a stigma attached to it, comparable to so-called "sin industries". However, since the Russian invasion of Ukraine in early 2022, the image has changed - in politics, business and increasingly also in the start-up scene.
What was once considered a moral taboo is now part of a security policy necessity for some. Technological innovation is increasingly seen as a strategic factor in the defense sector. The much-cited "turnaround" has not only made a special fund for the Bundeswehr possible, but has also opened up new spaces for start-ups that develop technological solutions for security-relevant applications - be it in the field of drones, cyber security, satellite technology or AI-supported decision support.
The war in Ukraine in particular shows how military innovation cycles are being drastically shortened by agile players. Developments that used to take years now happen in weeks or days - often directly on the front line. The conflict thus functions as a kind of unintentional "real laboratory" for military innovation. At the same time, the boundaries between civilian and military technology are becoming increasingly blurred. Dual-use is not just a concept, but a reality in the field: 3D printers, commercial drones, open-source AI and Starlink terminals are taking on strategically relevant tasks.
These developments raise difficult questions. How do we deal with a dynamic of innovation that transforms civilian technology into warlike effectiveness? How do we respond to an armaments landscape in which not only large corporations but also small, fast-moving start-ups are becoming relevant players? What role does government procurement play in this ecosystem - and where are democratic control, transparency and ethical standards?
At the same time, a new market environment is opening up: venture capital, which has tended to avoid the sector in the past, is beginning to flow. In Germany, digital hubs and accelerators are emerging specifically for defense and security start-ups. Initiatives such as BASED in Munich are attempting to make founders "investment ready" - often with the self-image of making a contribution to democratic defense capabilities.
At the same time, many of these developments are caught between technological disruption and security policy responsibility. While technological superiority is increasingly seen as a prerequisite for military effectiveness, it remains unclear how a balance between innovation, regulation and ethical orientation can be achieved in the long term. The public debate on this has so far been comparatively muted - despite the fact that it involves questions that deeply affect fundamental social convictions: Which technologies do we want to promote? Who should have access to innovations that can be used for military purposes? And who bears responsibility for their consequences?
If you would like a deeper insight into the topic, you can find an article on Starting-up.de on the DefenseTech-Report 2025 by Prof. Dr. Rafaela Kraus, Vice President of the University of the Federal Armed Forces Munich, initiator of the Entrepreneurship Center founders@unibw and initiator of the DefenseTech-Hub BASED.