• Defense tech companies raised $35.4 billion across 415 deals in H1 2026.
• Q2 deal count fell to 164 from 251 in Q1, but average deal size rose to $91 million.
• Anduril's $5 billion Series H accounted for one-third of Q2 deal value.
• Five of the 10 largest Q2 rounds went to companies outside defense-specific segments.

This trend may indicate a shift towards more concentrated investment in defense tech, with a focus on scaled companies and dual-use technologies. The market could be becoming more discerning, favoring companies with proven strategic relevance and the ability to serve both commercial and defense markets, which suggests a growing importance of dual-use exposure in defense tech investment.