Europe now faces a critical choice: continue relying on legacy defence contractors operating with decades-old procurement timelines, or rapidly embrace the technological revolution reshaping modern warfare. The evidence from Ukraine is unambiguous: AI-powered drone swarms, autonomous systems, and software-defined platforms are determining battlefield outcomes. Yet European governments remain hesitant to buy from the innovative startups building these capabilities.
But money alone won’t protect Europe. If capital flows primarily to legacy contractors building yesterday’s systems, Europe will remain dangerously exposed. The modern battlefield demands autonomous drone swarms, AI-powered command and control, responsive space-based surveillance, and distributed manufacturing that can operate even under attack.
Consider this contrast: Ukrainian forces operating containerized 3D printing facilities near front lines can design, print, and deploy drone countermeasures within hours. Traditional European defence procurement cycles measure timelines in years, sometimes decades. This disconnect isn’t just inefficient, it’s strategically dangerous.
Europe’s over-reliance on Chinese manufacturing and American defence technology has created dual dependencies that undermine strategic autonomy. Breaking these requires massive investment in advanced industrial manufacturing, from additive manufacturing facilities operating in combat zones to autonomous factories capable of 24/7 production surges.
European nations must fundamentally reform defence procurement:
Most critically, governments must recognize that innovation increasingly comes from unexpected places — companies that started in commercial markets and bring fundamentally different approaches than legacy contractors.
Russia has restructured its entire economy for sustained military production. China controls critical materials essential for modern defence. The United States maintains overwhelming technological superiority but with increasingly unpredictable commitments. Europe can no longer afford to outsource its security or delay embracing the innovation revolution reshaping warfare.
The companies being founded today will define Europe’s defence capabilities for 30 years. At Bessemer, we’re backing European defence innovators for the long term, connecting them to global markets, and providing patient capital. The question is whether European governments will match that commitment with procurement reform and the urgency this moment demands.
The defence innovation race is already under way. Europe needs to start running.
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