Key Takeaways
- • Defense, security and other hard-tech startups across ten CEE countries on the EU's eastern flank secured approximately €1.5B (CZK 37B) in investment in the first nine months of 2026, with the full-year figure projected to reach €2.1B (CZK 51B), according to data presented at Engaged Investments 2026 in Prague.
- • Czechia was the only market in the regional overview where hard-tech startups attracted no venture capital during the period, though DEPO Ventures noted Czech capital is being deployed into companies outside the country.
- • Per the Defense Angels European Network (DAEN), tough-tech investment could more than double in 2026 versus 2025, and domestic capital accounted for roughly half of investment in the first nine months.
- • Finland leads the regional ranking, while Slovakia has become the third-largest market, attracting more investment in 2026 than in all previous years combined.
- • Investors cite access to institutional capital, larger funding rounds and exit opportunities as the region's main remaining challenges, with an estimated 50-60 funds now investing in AI across CEE.
Summary
Defense, security and other hard technologies are drawing growing investor interest across Central and Eastern Europe. According to data presented at the Engaged Investments 2026 conference in Prague, startups in these sectors across ten countries on the EU's eastern flank secured approximately €1.5B (CZK 37B) in the first nine months of 2026, with the figure projected to reach €2.1B (CZK 51B) by year-end. The conference, organized by Czech investment group DEPO Ventures on October 21-22, drew about 500 investors, founders and technology executives from 27 countries.
According to the Defense Angels European Network (DAEN), an initiative involving DEPO Ventures, tough-tech investment could more than double in 2026 compared with the previous year. Since 2024, these sectors have accounted for nearly one-third of venture capital investment across the ten countries examined, compared with less than one-sixth in the rest of Europe. Domestic capital made up about half of the investment recorded in the first nine months of 2026. Finland leads the regional ranking, while Slovakia has emerged as the third-largest market.
Czechia stands out for the opposite reason: it was the only market in the regional overview where these startups attracted no venture capital during the period. DEPO Ventures noted this does not mean Czech investors are absent from defense technology, as some Czech capital is being deployed into companies outside the country.
Beyond defense, conference discussions centered on the maturity of the region's venture ecosystem. Speakers included representatives of the NATO Innovation Fund, European Investment Fund, NGP Capital, Warsaw Equity Group, Purple Ventures and Silicon Gardens. Investors said CEE has moved from a shortage of venture capital toward a more developed funding environment over the past five years, with an estimated 50-60 funds now investing in artificial intelligence across the region. Access to institutional capital, larger rounds and exits remain key obstacles. Petr Šíma, Partner at DEPO Ventures and founder of Engaged Investments, said the main question was no longer whether to invest in the region but what to invest in and how to do it collaboratively. A panel cited a figure that as many as 90% of founders also invest, though the methodology behind that estimate was not specified.
On regulatory readiness, Ivan Sagál, Partner at Bird & Bird, said founders who address legal and regulatory matters from the outset gain an advantage with investors, and that in defense and fintech "regulation is part of the product itself." The conference's second day covered fintech and early-stage companies, with about 60 companies pitching during the Startup Showcase and a UnBundled programme organized by The FinTechers with Mastercard. Investors are increasingly prioritizing capital efficiency, expecting rapid execution, lean operations and disciplined spending.
According to the Defense Angels European Network (DAEN), an initiative involving DEPO Ventures, tough-tech investment could more than double in 2026 compared with the previous year. Since 2024, these sectors have accounted for nearly one-third of venture capital investment across the ten countries examined, compared with less than one-sixth in the rest of Europe. Domestic capital made up about half of the investment recorded in the first nine months of 2026. Finland leads the regional ranking, while Slovakia has emerged as the third-largest market.
Czechia stands out for the opposite reason: it was the only market in the regional overview where these startups attracted no venture capital during the period. DEPO Ventures noted this does not mean Czech investors are absent from defense technology, as some Czech capital is being deployed into companies outside the country.
Beyond defense, conference discussions centered on the maturity of the region's venture ecosystem. Speakers included representatives of the NATO Innovation Fund, European Investment Fund, NGP Capital, Warsaw Equity Group, Purple Ventures and Silicon Gardens. Investors said CEE has moved from a shortage of venture capital toward a more developed funding environment over the past five years, with an estimated 50-60 funds now investing in artificial intelligence across the region. Access to institutional capital, larger rounds and exits remain key obstacles. Petr Šíma, Partner at DEPO Ventures and founder of Engaged Investments, said the main question was no longer whether to invest in the region but what to invest in and how to do it collaboratively. A panel cited a figure that as many as 90% of founders also invest, though the methodology behind that estimate was not specified.
On regulatory readiness, Ivan Sagál, Partner at Bird & Bird, said founders who address legal and regulatory matters from the outset gain an advantage with investors, and that in defense and fintech "regulation is part of the product itself." The conference's second day covered fintech and early-stage companies, with about 60 companies pitching during the Startup Showcase and a UnBundled programme organized by The FinTechers with Mastercard. Investors are increasingly prioritizing capital efficiency, expecting rapid execution, lean operations and disciplined spending.
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