The Global arms race: How venture capital is fuelling the war effort
As the world teeters on the brink of chaos, the war industries are booming. The Russian invasion of Ukraine and Hamas’s brutal attack on Israel have unleashed a torrent of investment into military-tech startups. The U.S. alone has pumped $53 billion into major tech firms between 2019 and 2022, but it’s not the only game in town.
German-based AI startup Helsing is a prime example of the unprecedented amounts of capital flooding the defense-tech space. With over $200 million in funding, Helsing is a shining star in the crowded startup landscape. And it’s not just them – investors are hungrily snapping up shares of companies with dual-use potential, pouring millions into AI, space tech, cybersecurity, and more.
The buzzword these days is "resilience tech", and it’s all about creating systems that can withstand the ever-present threat of war and terrorism. The concept may seem benign, but it’s effectively a euphemism for "investing in the war machine". Just ask Helsing’s co-CEO, Gundbert Scherf, who founded the company to "ensure AI enables democracies to defend their values".
Investors like Spotify founder Daniel Ek are pouring money into defense tech startups, and it’s not just their personal funds – mainstream investors are now eager to get a piece of the action. The European Investment Fund has even partnered with NIFA (NATO Innovation Fund) to pump $1 billion into "innovation for safety, freedom, and human empowerment".
These venture capital firms are now clamouring to get in on the ground floor of the next big thing: startups that can help nations cope with the chaos of war. OTB Ventures, MD One Ventures, D3, and more are all looking to invest in the next generation of weapons-makers, cybersecurity firms, and innovation incubators.
The question is, as we continue to pump billions of dollars into the war effort, what is the moral cost of this "resilience tech" revolution? Is it justifiable to pour our collective purse into a system that perpetuates endless conflict?
