German government to buy stakes in defense startups

Germany will create an investment fund from which the state will be able to buy shares in defense startups. There is no information yet on the size of the fund.

Reuters writes about this.

German Economy Minister Katharina Reiche said that the defense sector could provide the country with an additional 0.5-1% of economic growth if it is "invested in well".

Reuters writes that the impetus for this decision was the war in Ukraine and doubts about US guarantees under the presidency of Donald Trump. That is why Germany and other EU countries are restoring defense capabilities "after decades of underfunding".

The agency recalled that German companies Helsing (developing AI for the defense sector) and ARX Robotics (manufacturing ground systems) are already supplying their technologies to Ukraine, where they are being tested on the battlefield.

• In the first half of 2026, a record number of startups were founded in Germany — 3 053. This is 52% more than in the second half of 2025.

For more news and in-depth stories from Ukraine, please follow us on X.