Hypersonica Raises €100 Million From Lightspeed and General Catalyst to Build Europe's Own Hypersonic Missiles

A three-year-old Anglo-German startup has raised €100 million to build hypersonic missiles for Europe, one of the starkest signs yet of how the continent's push to rearm is drawing venture capital into weapons development that was once the exclusive domain of governments and large defence contractors.

Hypersonica, headquartered in Munich with a subsidiary in London, raised the Series B round co-led by US investors Lightspeed Venture Partners and General Catalyst, with participation from existing investors Plural and 201 Ventures, according to Tech.eu, which reported the deal on Monday, November 2. The Financial Times reported a valuation of about €700 million, according to Tech Startups, although the company has not disclosed its valuation.

The round comes just nine months after Hypersonica's €23.2 million Series A in February 2026, led by Plural with General Catalyst and 201 Ventures.

What Hypersonica is building

Hypersonica is developing long-range hypersonic missiles, which travel at more than five times the speed of sound, according to Tech.eu. The company is working on "deep-strike" systems with ranges above 2,000 kilometres under the Trinity House Agreement, a defence partnership between the United Kingdom and Germany. It aims to develop these systems by 2029.

Hypersonic weapons are difficult to intercept because of their speed and, in many designs, their ability to manoeuvre in flight. Russia and China have deployed hypersonic weapons, and the United States has been developing its own, but Europe has lagged behind.

"The debate about whether Europe needs hypersonic deep-strike capability is over," said co-founders Philipp Kerth, the chief executive, and Marc Ewenz, the chief technology officer, according to Tech.eu. "Europe needs credible hypersonic long-range capability, and more value for every pound and euro it spends."

The founders

Hypersonica was founded in 2023 by Kerth and Ewenz, both of whom hold doctorates. The company plans to use the new funding for further testing, expansion of its operations across Europe and the creation of hundreds of engineering and manufacturing jobs in the United Kingdom and Germany, according to Tech.eu.

Europe's rearmament

The funding reflects a dramatic shift in European defence policy. Russia's full-scale invasion of Ukraine in 2022 prompted European governments to increase defence spending sharply, and NATO members have committed to significantly higher spending targets. Concerns about the reliability of US security guarantees have added urgency to efforts to build independent European capabilities.

Long-range strike capability has been identified as a key gap. European countries have relied heavily on US systems, and the war in Ukraine has highlighted the importance of being able to strike targets deep behind enemy lines. Several European initiatives aim to develop new long-range missiles, and the Trinity House Agreement, signed in 2024, commits the United Kingdom and Germany to cooperating on defence capabilities, including deep precision strike.

Venture capital embraces defence

Hypersonica's round is part of a broader surge of venture investment in defence technology. Investors that once avoided weapons companies because of ethical concerns or limited-partner restrictions have increasingly embraced the sector, arguing that supporting the defence of democracies is a legitimate and important goal.

European defence startups such as Helsing, a German AI defence company, Quantum Systems, a drone maker, and others have raised large sums in recent years. In the United States, companies such as Anduril, Shield AI and Castelion, which is also developing low-cost hypersonic weapons, have attracted significant funding.

Lightspeed and General Catalyst, two of Silicon Valley's best-known venture firms, have both expanded their defence technology investments. Their decision to co-lead Hypersonica's round signals confidence that startups can develop complex weapons systems faster and more cheaply than traditional defence contractors.

The cost argument

A central part of Hypersonica's pitch is cost. Traditional missile programmes are notoriously expensive and slow, often taking decades and billions of euros to develop. New entrants argue that modern engineering methods, rapid testing and commercial manufacturing techniques can dramatically reduce costs and timelines, allowing governments to buy more weapons for the same budget. The co-founders' emphasis on "more value for every pound and euro" reflects this approach.

The challenges

Developing hypersonic weapons is technically demanding. Vehicles travelling at hypersonic speeds face extreme heat and pressure, requiring advanced materials, propulsion and guidance systems. Testing is expensive and requires access to specialised facilities. Many hypersonic programmes, including some in the United States, have experienced test failures and delays.

Hypersonica will also need to win government contracts, navigate complex procurement processes and comply with strict export controls and security requirements. Defence procurement in Europe is fragmented, with each country running its own processes, although efforts are under way to coordinate purchasing.

Ethical debates

The growth of venture-backed weapons companies has sparked debate about the role of private capital in developing lethal technologies. Supporters argue that strong deterrence is essential to prevent war and protect democratic societies, while critics raise concerns about the commercialisation of weapons and the risks of an arms race. Hypersonic weapons, which compress decision times for defenders, are a particular focus of arms control concerns.

What it means for India

India has its own active hypersonic programme. The Defence Research and Development Organisation (DRDO) has tested a long-range hypersonic missile, and India and Russia jointly developed the BrahMos supersonic cruise missile, with a hypersonic version under discussion. India's growing defence startup ecosystem is also attracting more investment, although venture funding for weapons development remains far smaller than in the United States and Europe.

The rise of private defence companies in Europe could create opportunities for collaboration with Indian firms, as India seeks to diversify its defence partnerships and expand its defence industrial base.

Europe's defence startups mature

Hypersonica's rapid progress from a Series A in February to a €100 million Series B in November reflects how quickly European defence startups are maturing. Governments have become more willing to work with young companies, and new procurement initiatives at the national and European Union levels aim to speed up the adoption of innovative technologies.

The European Union has launched programmes to support defence investment and joint procurement, and several countries have created dedicated funds and agencies to work with defence startups.

What comes next

Hypersonica will use its new funding to accelerate development and testing, with the aim of delivering hypersonic deep-strike systems by 2029. Its progress will be closely watched as a test of whether venture-backed startups can deliver complex strategic weapons on time and on budget, and whether Europe can close its gap in long-range strike capability.