Europe is facing mounting security threats and a pressing need to modernise its military capabilities, and new defence companies are emerging as vital players in that race. They are nimble, cost-efficient, and often years ahead of legacy contractors when it comes to developing practical technologies.
Yet across the continent, such startups face a persistent and structural problem. There is a “valley of death” between success in their home markets and adoption abroad. Analysts estimate there are around 420 aerospace and defence startups in Europe, with nearly a third founded since 2022. That is a clear sign of growing momentum in the sector. But only a small fraction of these companies have managed to secure pilots or export their systems into operational use beyond their home bases.
At a roundtable with new defence companies hosted by the European Commission back in June, I made a proposal to support defence-tech SMEs, which I titled Fielding of New Defence Capabilities in New Markets. Designed to address the growing disconnect between national adoption and broader European deployment, it offers a potential pathway through the current impasse—one we’ll examine in more detail below.
The procurement gap few want to talk about
Europe’s defence ambitions are becoming more serious. Announcements, strategy papers, and increased spending have all followed recent geopolitical shifts. Yet despite rising defence budgets, Europe has sourced nearly 80% of its military procurement from outside the bloc . With the stated goal to increase domestic production, one of the issues that continues to hold back real progress is the broken link between national traction and European-scale adoption.
For many defence tech startups, the experience is the same. A company builds a system, sells it to its national military, and might even see it deployed in the field. But when it tries to enter another EU market, the process often restarts from scratch. It becomes slow, unpredictable, and difficult to finance. This is where promising technologies often disappear.
Most EU countries still lack clear mechanisms that enable the rapid procurement and testing of new defence systems. Even technologies already fielded by one military must navigate political inertia, complex procurement rules, and limited trial budgets before being considered elsewhere. For new defence companies, the cost of entering a new market is often too high. As a result, many high-impact technologies stall at the border. But it’s not only about the high cost of entry for new companies; it’s also about the risk that buyers take when purchasing a new technology from a relatively young company.
A targeted solution: the Fielding Acceleration Instrument
When I joined the roundtable in June hosted by European Commissioner for Defence and Space, Andrius Kubilius, to discuss challenges and potential new instruments to support defence SMEs, my proposal for how to create a programme to field emerging defence approaches in new markets received strong support.
This initiative proposes a straightforward mechanism to support the cross-border deployment of systems already adopted in one EU country. The aim is to bring operational, market-tested technologies to new users in a practical and time-sensitive way.
To address the risk involved in purchasing new systems from small foreign companies, a country gets validation signals from other member states (e.g., “I use it”). Meanwhile, a different entity – typically the company’s home country and the Commission – covers the cost of testing.
Why the home country? Because it needs its local defence industry to grow and succeed. As Kubilius mentions here, you can’t procure everything today, since some things will eventually become obsolete. That’s why you need a healthy domestic industry capable of producing what’s needed, when it’s needed (and to make the revenues needed to invest in R&D for the next generation of technology).
To qualify for such a programme, a system must have already been purchased by one European military. In addition, the company’s home Ministry of Defence must agree to co-finance its deployment in another EU country. A second military, one not yet a customer, must commit to testing it with a view to future procurement. The process is designed to be clear and efficient. It should enable deployment, training, feedback, and adaptation within a defined timeframe, rather than leaving some startups in the cold with conventional, multi-year procurement cycles.
The Fielding Acceleration Instrument addresses several long-standing issues.
First, it speeds up access to critical capabilities. Rather than waiting for future procurement cycles, militaries can trial proven technologies now.
Second, it supports companies that have already delivered results. Instead of funding speculative concepts, it helps technologies that are ready to scale.
And third, it helps startups grow into stronger, more sustainable businesses. Selling into a second market means meeting new expectations, responding to more demanding users, and constantly improving the product. That pressure leads to better systems.
The role of national Ministries of Defence
A key feature of the proposal is the requirement for co-financing (at least 10%) by the applicant’s national Ministry of Defence. This brings an important layer of quality control.
When a government is asked to support international fielding, it will naturally assess the maturity and reliability of the defence system. Its commitment acts as a signal to the Commission and to foreign defence ministries. Again, one of the stipulations of the proposal is that the system has been sold to at least one military in Europe. Without this condition, the programme could be overwhelmed by applicants whose systems are not yet viable.
The co-financing model also nudges governments toward a more strategic industrial role. Many EU member states still lack clear defence-industrial strategies. This requirement encourages them to identify high-potential domestic suppliers, support their export efforts, and participate actively in strengthening Europe’s defence base.
The instrument’s pan-European benefits
For the European Commission, the logic is clear. Supporting deployment, not just research, accelerates access to capabilities, shortens development cycles, and strengthens industrial resilience.
This approach also supports strategic autonomy. By helping scale technologies built and maintained in Europe, it reduces reliance on non-EU suppliers and supports more integrated defence operations across member states.
Importantly, it also improves interoperability. When EU militaries field compatible systems, coordination and joint operations become simpler and more effective.
If implemented properly, the Fielding Acceleration Instrument would accomplish:
- Fast deployment across Europe of de-risked, high-impact, cost-efficient defense technology
- Fielding of new defense technology for hands-on testing, which will then lead to large-scale procurements conducted by the member states independently.
- Emergence of many new Europe-based major defense companies.
To clarify, this is not about facilitating the next unicorn (but a new unicorn would be a likely outcome). It’s about allowing newly-built systems to be deployed faster, to solve real problems in demanding environments. The faster those systems reach the people who need them, the stronger our European collective security becomes.
Why the Commission should take the lead – and fast
The Commission’s broader defence omnibus package, announced earlier this year, includes important steps to reduce red tape, improve permitting, and support joint procurement. But Europe still lacks the mechanisms to connect these reforms with operational outcomes. Funding alone does not guarantee progress. Fielding must follow. That is the link this initiative can provide.
Other countries are moving fast. The United States recently moved from concept to field deployment in just five months through its Replicator initiative. In the UK, procurement cycles are now measured in months, not years.
Europe has the engineering talent, the ideas, and the resources. What’s missing is the speed and coordination to match.
Agris Kipurs is the co-founder and CEO of Origin Robotics, a Riga-based defence tech startup specialising in advanced autonomous systems, with a particular focus on airborne precision-guided weapon systems. Origin’s flagship product, The BEAK, is a versatile, ISR system with precision strike capabilities, designed for portability and reusability.
