Helsing, a defense AI startup, has successfully secured €450 million ($487 million) in a Series C financing round, with General Catalyst leading the investment. It is now looking to broaden its reach in European countries that are adjacent to Russia. The announcement coincided with NATO’s annual summit in Washington, D.C., where the focus is on addressing the Russian invasion of Ukraine.
According to the mentioned plan, Helsing has established a new entity in Estonia and intends to allocate €70 million towards Baltic defense projects in the upcoming three years. The company, with headquarters in Germany and additional offices in Munich, London, and Paris, has announced a new investment to enhance its AI capabilities and expand its workforce beyond its current 300 employees.
Helsing specializes in developing cutting-edge AI software that revolutionizes defense systems. Our advanced technology enhances the capabilities of drones and jet fighters, empowering them with superior weapon capabilities. Additionally, our software provides invaluable support in making informed battlefield decisions. Trust Helsing to deliver state-of-the-art solutions for your defense needs. 
Gundbert Scherf, Helsing’s co-chief executive officer, emphasized in an interview with Eltrys the significant role of technology in Ukraine’s defense against the full-scale Russian invasion. He expressed pride in their ability to contribute by deploying their advanced technology and fulfilling their mission to safeguard democracies using AI. This has been a major motivating factor for their team.
He expressed the company’s commitment to European values and the protection of European interests and democracies, specifically referring to the expansion into Estonia. However, it is worth noting that this phenomenon is not limited to just one region. It is occurring on our eastern side, spanning from Finland, through the Baltics, and down to Poland. Estonia stands out as a nation at the forefront of technology, with a prime minister who is deeply committed to safeguarding European democracies. So it seemed like the obvious place to begin.
Kaja Kallas, the prime minister of Estonia, expressed her enthusiasm for Helsing’s arrival in the country, emphasizing the importance of taking action rather than just making promises.
“Russia has significantly boosted its defense budget to 7% of GDP, indicating that their intentions may extend beyond Ukraine,” commented co-CEO Torsten Reil. There is a strong commitment to establish a capability gap that will effectively deter and, if needed, protect Europe and the NATO eastern flank. A sense of responsibility and urgency are the driving forces behind this.
When questioned about the source of Helsing’s AI compute, the co-CEOs of the company chose not to disclose specific information. Reil mentioned that they utilize their own computing resources. We utilize ‘Edge’ devices and always require local compute as well. A few weeks ago, we unveiled Project Centaur, a groundbreaking initiative that harnesses the power of reinforcement learning to develop an advanced AI system for air combat. That definitely requires a significant amount of computational power. Currently, a significant amount of our budget is allocated towards training and developing our agents. In due time, our air combat capabilities will reach unprecedented heights. And that’s when we utilize scaled-up computation.
According to Reil, the company relies on external partners for certain computing tasks, but he refrained from disclosing their identities due to security concerns.
Helsing has successfully secured contracts with prestigious clients such as Airbus SE and defense ministries in Germany and Ukraine. These include significant projects like the German Eurofighter Electronic Warfare Upgrade, in collaboration with Saab AB, and the development of AI infrastructure for the Future Combat Air System (FCAS) through a consortium. Additionally, Helsing has also undertaken classified contracts in the maritime and land sectors, solidifying its position as a trusted partner in these domains.
According to an undisclosed source, the recent funding round could potentially value the company at around €4.95 billion ($5.4 billion), as reported by Bloomberg. However, the company has chosen not to provide any official comments regarding its valuation.
The startup is carving out a niche that is gaining popularity among startups as defense technology becomes a top priority for Western investors who are worried about Russia’s aggressive stance and the potential threat from China. Last week, PitchBook released a report stating that Silicon Valley has invested nearly $35 billion in defense tech startups in 2023, with an additional $9 billion invested so far this year.
Simultaneously, there is an increase in Western defense budgets, which presents a favorable prospect for entrepreneurs and investors in this field.
Nevertheless, although there may be a U.S. counterpart to Helsing like Anduril Industries Inc., only a handful of European defense startups have achieved the same level of success. This is partly due to the fact that European government defense spending still falls short compared to that of the U.S.
Helsing has successfully secured a substantial amount of funding, totaling €769 million, from various investors. Notable contributors include Prima Materia, the fund established by Spotify founder Daniel Ek; Swedish defense supplier Saab AB. Accel; Lightspeed Venture Partners; Plural; Greenoaks Capital Management; and Elad Gil, a prominent Silicon Valley investor, all of whom participated in the latest funding round.
Jeannette zu Fürstenberg, managing director and head of Europe for General Catalyst, expressed strong confidence in Helsing’s potential to emerge as a global category leader. With the emergence of battlefronts on European soil after a long period of peace, the importance of companies like Helsing has become increasingly evident.
