Defense tech’s hot streak

April 11, 2026

Ali Javaheri

Pitchbook

Defense tech VC opens 2026 near record highs

Defense tech opened 2026 with another huge quarter.

According to preliminary data, VC investment in the sector reached $17.8 billion in Q1, just below the $17.9 billion high set in Q2 2025 and up from $14.2 billion in Q4 2025. That puts Q1 among the strongest quarters in the dataset and adds to the case that defense tech is no longer just a cyclical pocket of venture interest but an increasingly durable funding category with sustained institutional backing.

The contrast from a few years ago is clear. In 2022 and 2023, quarterly investment generally moved between $4.7 billion and $9.5 billion, with capital deployment coming in bursts rather than in a steady pattern. There was real interest in the category, but not yet the kind of consistency that would suggest investors were broadly underwriting defense tech as a long-term allocation theme.

That started to change in 2024. Quarterly investment rose from $5.7 billion in Q1 to $8.9 billion in Q4, pointing to a buildup in conviction. Investors were increasingly backing companies tied to autonomy, national security modernization, resilient infrastructure and next-generation defense systems, even as the broader venture market stayed relatively selective.

Then came the real step-up in 2025. After Q1 came in at $7.9 billion, investment jumped to $17.9 billion in Q2 and stayed elevated at $11.3 billion in Q3 and $14.2 billion in Q4. Just as important, funding did not fall back to earlier levels, suggesting defense tech was being treated less like a narrow thematic trade and more like a strategic category.

Q1 2026 only reinforces that trend.

Shield AI raised $2 billion at a $12.7 billion valuation, comprising a $1.5 billion Series G led by Advent International and JPMorgan Chase, and $500 million in preferred equity financing from Blackstone. Saronic Technologies raised $1.75 billion in a Series D led by Kleiner Perkins, valuing the company at $9.25 billion, more than double its prior $4 billion valuation following a $600 million raise earlier last year.

Together, those two rounds accounted for $3.75 billion in a single quarter and highlight where capital is concentrating: scaled autonomy platforms with strong production narratives and clear demand signals across air and maritime environments.

If investment continues anywhere near this level, 2026 could further solidify defense tech as one of the most durable areas in venture and growth investing.