Europe's Helsing raises $1.8 billion, valuing defence group at $18 billion

July 13 (Reuters) - Helsing said on Monday it had raised $1.8 billion in a Series E funding round that values the Munich-based firm at $18 billion, cementing its position as the continent's best-funded defence technology startup.

Helsing's funding round follows a $1.2 billion investment in German drone maker Quantum Systems last week, which more than doubled the company's valuation to about $8 billion.

The funding comes as European governments accelerate investment in defence after Russia's invasion of Ukraine highlighted the importance of real-time targeting and battlefield awareness.

The investor base reflects the international nature of capital flowing into European defence technology. The round included U.S. venture capital firms such as Dragoneer Investment Group, Lightspeed Venture Partners, General Catalyst, Iconiq and Disruptive, U.S. financial institutions Goldman Sachs and JPMorgan and Canadian pension fund CPP Investments.

Founded in 2021, Helsing initially focused on artificial intelligence software designed to help analyse battlefield data before expanding into autonomous strike drones, underwater surveillance systems and military aircraft applications.

It has secured contracts with European governments and defence companies, while supplying drones for Ukraine backed by German government funding.

(Reporting by Maria Rugamer, Editing by Louise Heavens)