Global Billions in Defence-Tech Fuel Jobs and Startup Growth in Portugal

Multinational corporations have quietly doubled their venture-capital fire-power in defence technology, a move that is poised to accelerate drones, artificial intelligence and satellite systems into daily military use—and into the order books of Portuguese suppliers.

Why This Matters

• €1.7 B in corporate money flowed into defence-tech start-ups worldwide last year, a record that increases the odds of contracts spilling over to Portuguese subcontractors.

• EU procurement rules are loosening, making it easier for Lisbon-based scale-ups to win NATO or European Defence Fund tenders.

• High-skill jobs and equity stakes are on the table: engineers can command premium salaries, while local investors gain a rare route to growth outside the overheated consumer-tech space.

A Surge Fueled by Boardrooms, Not Barracks

PitchBook data show that corporate investors—think aerospace giants and deep-tech conglomerates—took part in 28 funding rounds worth US$2 B (≈€1.7 B) in 2025. That pushed their share of all defence-tech venture deals to 10.6 %, up from 9.9 % the year before. Overall venture investment in the sector more than doubled to US$9.5 B, reflecting a market that now prices battlefield-tested software like any other high-growth asset.

Why Corporations Are Jumping In

Companies such as France’s Dassault Aviation or the Czech holding CSG are chasing two prizes: access to proprietary algorithms and equity upside. By leading Harmattan AI’s US$200 M Series B, Dassault not only bought a stake in a future unicorn; it secured early integration rights for swarm-drone software that could shave years off its own R&D cycle. Similar logic drives Raytheon, Airbus and even cloud providers to set up dedicated venture arms.

Portugal’s Seat at the Table

Lisbon is no bystander. Home-grown drone maker Tekever closed a €30 M contract with the European Maritime Safety Agency and is investing €100 M in a new French facility, partly financed by revenue from NATO surveillance deals. Further down the pipeline, Porto-based Beyond Vision is assembling long-endurance UAVs for border patrol, while Coimbra’s Connect Robotics and Lisbon’s Neuraspace have secured spots in NATO’s DIANA accelerator. The combined effect is a budding ecosystem where dual-use technology—civil and military—can be designed, tested and exported without leaving the Iberian Peninsula.

Europe’s New Procurement Playbook

Brussels is rewriting the rules of engagement to pull startups into its supply chain. The European Defence Fund earmarked roughly €1 B for 2026 R&D calls, and its EUDIS programme now offers equity co-investment alongside grants. Crucially, a forthcoming revision of Directive 2009/81/EC aims to cut red tape so that SMEs need only prove turnover equal to twice the contract value, not five or six times as before. For Portuguese founders accustomed to lengthy public-tender cycles, that is the difference between surviving and scaling.

What This Means for Residents

Investors: Portugal’s 28% capital-gains tax can drop to 14% under the VC exemption if you hold shares for five years—meaning early participation in defence rounds could outperform the PSI-20 index.Professionals: Aeronautical engineers with drone-navigation skills now command €45k–€70k salaries, 15 % above the national tech average.SMEs: Metal-machining firms in Aveiro and Setúbal can pivot to high-margin aerospace components, tapping EU re-tooling subsidies that cover up to 60 % of CapEx.Taxpayers: Higher export revenue mitigates Lisbon’s need to raise defence spending from the current 1.5 % of GDP toward NATO’s 2 % target, potentially easing pressure on other public services.

Looking Ahead: 2026 Signals to Watch

AI-first battle management software is moving from trials in Ukraine to NATO procurement lists; expect fresh funding rounds in Q3.

Space-based radar (SAR) platforms, including a French-Portuguese consortium led by Loft Orbital, will test Europe’s appetite for sovereign satellites—a market where Portugal’s cluster in Ponte de Sôr could gain contracts.

Corporate venture arms from U.S. cloud providers are rumored to open EU desks; legislation on data-sovereignty will decide whether that money lands in Lisbon or Luxembourg.

Portugal’s defence-tech moment is therefore not a headline about far-off conflicts; it is a live spreadsheet of funding calls, tax incentives and hiring notices. Missing this wave could mean watching the next generation of strategic industry—and its profits—leave the country’s airspace without ever touching down.