European Tech Funding Surge: SAP Acquires Prior Labs for €1B as Defense Tech Investments Accelerate

The European tech ecosystem is experiencing a massive influx of capital this week, driven by landmark acquisitions and a sharp pivot toward aerospace and defense technologies. Leading the charge is a blockbuster €1 billion exit in Germany, alongside major strategic moves from both US and European venture capital firms looking to secure a foothold in the continent's rapidly evolving dual-use tech sector.

While traditional consumer tech funding has seen fluctuations, enterprise software and sovereign resilience technologies are currently dominating the investment landscape, drawing hundreds of millions of euros in fresh commitments.

In one of the fastest turnarounds in recent European startup history, Germany's Prior Labs has successfully raised funds and executed an exit to enterprise software giant SAP at a staggering €1 billion valuation. Remarkably, this milestone was achieved just 18 months after the company was founded.

The rapid acquisition highlights the intense demand for cutting-edge enterprise solutions and SAP's aggressive strategy to integrate high-value startups into its broader ecosystem before they mature into standalone competitors.

Beyond enterprise software, the week's funding data reveals a massive surge in defense and aerospace investments across Europe. Venture capital is increasingly flowing into dual-use technologies, supported by both private funds and international defense organizations.

• Lockheed Martin Ventures: The US-based investor is deepening its European footprint, committing at least €87 million to the region and opening a new dedicated office in the UK to scout emerging defense tech.
• Greenjets: The British aerospace technology company successfully raised a €35 million Series A funding round. Notably, this round was executed with direct backing from NATO, underscoring the strategic military importance of their aerospace innovations.
• Lakestar: The prominent venture capital firm has officially closed its €262.2 million Resilience I Fund. This massive capital pool is specifically targeted at backing European defense and dual-use technology companies.

The rapid €1 billion exit of Prior Labs to SAP proves that enterprise software consolidation remains highly lucrative, but the real story this week is the aggressive capital deployment into defense tech. With Lakestar's €262.2 million fund and Lockheed Martin's €87 million European expansion, venture capital is no longer shying away from military and aerospace applications.

NATO's direct backing of Greenjets further proves that dual-use technologies are now a primary growth vector for European startups. This fundamentally shifts the continent's investment landscape away from pure consumer applications toward sovereign resilience. Founders building in the aerospace and defense sectors now have unprecedented access to institutional capital, provided they can navigate the complex regulatory environments of international defense contracts.