Defense tech deal value hits record high as the sector matures
Our new Q4 2025 Defense Tech VC First Look delivers the first glimpse at VC activity in defense tech for the latest quarter. This initial data pack covers global deal value, deal count, and top transactions in the vertical. A full quarterly trend report will follow later in Q1; data is subject to change.
Five Eyes defense tech VC activity accelerated sharply in 2025, signaling a sector moving decisively out of the post-2022 correction. Deal value reached $49.1 billion, the highest level on record, alongside 861 transactions, reflecting renewed confidence in scaled platforms and manufacturing-ready companies rather than early experimentation.
Exit dynamics reinforced that shift. Exit value surged to $54.4 billion, even as exit counts remained selective at 69 transactions, pointing to fewer but materially larger outcomes. Capital and liquidity are concentrating around companies that have already retired production risk, positioning Five Eyes defense tech as a market simultaneously in expansion mode and entering an early phase of consolidation. Stay tuned for our in-depth analysis later this quarter.
