Dual-use technology startups flourish

August 30, 2026 - 01:44

Greek investment funds are shifting their focus toward homegrown startups working on defense and dual-use technologies, a sector that has long been overlooked in the country's innovation scene. The trend reflects a broader European push to build strategic autonomy in security and military capabilities, especially after recent geopolitical shocks.

Dual-use technologies, which serve both civilian and military purposes, include everything from advanced drones and cybersecurity tools to satellite communications and AI-driven surveillance systems. Greek startups in these fields have historically struggled to attract serious capital, as local investors preferred safer bets in fintech or tourism-related apps. That is changing now.

Several Athens-based funds have begun dedicating specific portfolios to what they call "resilience tech." They are backing early-stage companies that develop hardware components, secure software, or sensor systems with potential defense applications. The Greek government has also introduced tax incentives and simplified export licensing for such products, making the sector more attractive to private money.

One reason for the shift is the growing demand from NATO allies and European Union member states for alternative suppliers. Greece's strategic location in the eastern Mediterranean adds another layer of appeal. Investors say they are not just chasing profits but also contributing to national security and regional stability.

Still, challenges remain. The market is niche, and the sales cycles for defense contracts are long. Many startups need patient capital and technical guidance, not just a quick cash injection. Fund managers acknowledge that they are learning on the go, but they see the potential for strong returns once the first few success stories emerge.

For now, the mood is cautiously optimistic. Local founders report that conversations with investors have become more serious and more informed. A few deals have already closed, and more are in the pipeline. If the momentum holds, Greece could carve out a meaningful role in Europe's defense tech ecosystem, one startup at a time.