PitchBook clients can access this report and its Excel data pack via the Research Center on the PitchBook Platform.
Defense tech capital stayed hot in Q2, but the quarter was increasingly shaped by megadeals and dual-use companies
Defense tech VC remained highly active in Q2 2026, even as deal count fell from the record pace set in Q1. The bigger shift was where the capital went. Investors concentrated more dollars into a smaller number of scaled companies, with the average Q2 round rising to roughly $91 million from about $81 million in Q1. Anduril’s $5 billion Series H alone accounted for one-third of quarterly deal value, while the 10 largest rounds captured 62%.
Our reading is that the market is not pulling back so much as becoming more concentrated. Capital continues to flow toward companies with proven scale, strategic relevance, and the ability to serve both commercial and defense markets. That dual-use dynamic is becoming harder to ignore: Half of the 10 largest Q2 rounds went to companies outside defense-specific segments, underscoring how much defense exposure now sits across semiconductors, cybersecurity, energy, space, and advanced manufacturing.
The Defense Tech VC First Look is available as a three-page report with commentary, charts, and tables covering Q2 2026 VC dealmaking and exit trends. PitchBook clients can also access the report’s Excel data pack via the Research Center on the PitchBook Platform.
Key takeaways from Q2 include:
Deal activity: Defense tech companies raised $35.4 billion across 415 deals in H1. Q2 deal count fell to 164 from 251 in Q1, but capital remained elevated as larger rounds pushed the average Q2 deal size to about $91 million.
Capital concentration: Anduril’s $5 billion Series H represented one-third of Q2 deal value, and the 10 largest rounds accounted for 62% of the quarter, showing how heavily the market now depends on a relatively small group of scaled companies.
Dual-use exposure: Five of the 10 largest Q2 rounds went to companies outside defense-specific segments, including Groq, Cyera, Form Energy, Helion, and Cowboy Space. The quarter shows that a growing share of defense tech investment is reaching the market through commercial-first companies in semiconductors, cybersecurity, energy, and other enabling technologies.
Exits: Liquidity reopened across both public listings and M&A. Even excluding SpaceX’s $1.69 trillion IPO, H1 exit value reached roughly $72 billion, already exceeding every prior full year, with major exits including Cerebras Systems, X-energy, Armis, Fervo Energy, and HawkEye 360.
