What Happened
Public Spending And Private Capital Converge On Security
As geopolitical tensions rise, defense technology has become a significant investment thesis, with public spending and private capital converging to drive growth. According to the Stockholm International Peace Research Institute, global military expenditure reached $2.9 trillion in 2025, marking an eleventh consecutive year of growth. This trend is expected to continue, with NATO members committing to invest 5% of GDP in defense and broader security-related capabilities by 2035. Venture funding for defense-focused companies has also surged, reaching $29 billion in 2025, as reported by S&P Global Market Intelligence. This development may have implications for the wider innovation economy, as defense technology investment could influence the allocation of resources and talent across various sectors. This article was first published in Ctech.