Defense tech startup Harmattan AI hits unicorn status with $200M Series B

French defense tech startup Harmattan AI hits unicorn status with $200M Series B

VC interest in the sector is expected to accelerate this year as historic government spending increases drive return potential.

Europe has welcomed its first unicorn of the year as drone maker Harmattan AI raises a $200 million Series B.

French aerospace group Dassault Aviation led the round, which pushes the Paris-based startup’s valuation to $1.4 billion. The two companies are also partnering to embed Harmattan AI’s technology into Dassault’s combat aviation systems. The proceeds of the round will be used to scale Harmattan’s manufacturing capabilities and expand into new military domains.

Founded in 2024, Harmattan AI has largely flown under the radar compared to other European defense success stories such as Germany’s Helsing, quietly raising capital from investors including W Ventures and Tholus Capital.

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In its short lifespan, the company has already secured a multimillion-dollar contract from a NATO government for AI-enabled small drones and a contract from the UK Ministry of Defence for 3,000 unmanned aerial systems.

European governments are increasingly turning to startups to enhance the technological capabilities of their armed forces, resulting in increased spending that has drawn more investors to the space.

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According to PitchBook’s first look data for defense tech investment in Q4, deal value globally reached a record $49.1 billion for the year. The space minted two European unicorns in 2025: drone makers Quantum Systems and Tekever.

Appetite for defense tech is expected to be even stronger this year, but some investors have raised concerns of overheating in some corners of the market, namely drones.