|
|
   |
| The Europe Pitch |
| Your edge on global private capital markets in Europe, the Middle East and Africa |
| |
|
Good afternoon. Welcome to the inaugural edition of our refreshed regional newsletter: The Europe Pitch, giving you dedicated, timely coverage of the private capital markets in Europe, the Middle East and Africa from our London bureau, every weekday.
Defense sets the agenda in today's newsletter. First, we take a closer look at the diplomatic wrangling for Greenland and its ties to Silicon Valley.
Further down, we report on Europe's first new unicorn of 2026: French drone maker Harmattan AI. For a deeper look at the sector, check out our initial global data on VC defense tech investing.
As we work to develop and refine The Europe Pitch for the EMEA private markets ecosystem, we'd appreciate your feedback. Please email your views and suggestions to andrew.woodman@pitchbook.com.
Andrew Woodman, Managing Editor, European Private Markets |
|
|
|
|
|
|
|
|
|
|
| |
| Why Greenland's future is important to Silicon Valley |
|
 |
| (Leon Neal/Getty Images) |
|
|
By Leah Hodgson and Andrew Woodman, PitchBook News
Greenland should be a geopolitical footnote: due to its tiny population and distance from venture capital centers. Yet, renewed threats to the island’s sovereignty—and its resources—have highlighted Greenland’s importance not just to the US, but also to Silicon Valley.
A part of the Kingdom of Denmark, Greenland was once again drawn into a diplomatic row this month after President Donald Trump reiterated his desire for the US to acquire the Arctic territory. The fresh challenge, which followed the capture of Venezuelan leader Nicolás Maduro, carries both advantages and risks for America.
For VC investors and tech executives, Greenland’s importance doesn’t stem from any consumer demand or startup density, but from its inputs.
Central to Greenland’s appeal to Silicon Valley is its swathes of rare mineral resources that power everything from smartphones to satellites. A 2023 study by the Geological Survey of Denmark and Greenland found that 25 of the 34 minerals deemed critical were present in the country.
Greenland is among the top 10 nations globally in terms of reserves that have remained largely untapped, and the melting ice due to climate change is making access easier.
Currently, China dominates the rare minerals market. More than 60% of these elements globally are mined in the Asian nation. Beijing effectively controls the world’s supply and has the power to stymie US technological advancements if it imposes restrictions.
The US is already seeking to strengthen supply chains as it looks to cut its dependence on China. Reducing its reliance is becoming more critical in the age of AI.
The large-scale computing infrastructure that underpins AI relies on elements such as neodymium and dysprosium for cooling, insulation and durability. Reduced access would mean higher costs, slower deployment and less efficient infrastructure, weakening the competitiveness of US AI companies on which investors have bet hundreds of billions of dollars.
Beyond its rare mineral reserves, investors are eyeing up Greenland as a potential hub for the ever-growing need for data centers. The island, which is roughly the size of Western Europe and has a population of 57,000, would be a prime location for data centers. Furthermore, its cold weather conditions offer an advantage. Energy costs account for approximately 60% of a data center’s total lifetime operating expenses, primarily due to the need for cooling. |
|
|
|
|
|
|
|
|
|
|
| |
|
|
• Big funds dedicated to impact investing, secondaries and the Asia Pacific region have hit the market, the success of which could set the stage for these strategies. Go deeper
• As the world gathers for the annual JP Morgan Healthcare Conference, here are the 10 VC investors betting the most on the development of AI agents expected to transform healthcare services. View our list
• Andreessen Horowitz's $15 billion haul for a new set of funds is more than double the $7.2 billion it raised in 2024 for its prior group. Learn more
• Macquarie Group has raised the bar for its debut US direct lending fund, now aiming for $1 billion after holding a first close for the vehicle in November. Go deeper |
|
|
|
|
|
| |
| French defense tech startup Harmattan AI hits unicorn status with $200M raise |
|
 |
| (Ludovic Marin/Getty Images) |
|
|
By Leah Hodgson, Deputy Editor, European Private Markets
Europe has welcomed its first unicorn of the year as drone maker Harmattan AI raises a $200 million Series B.
French aerospace group Dassault Aviation led the round, which pushes the Paris-based startup’s valuation to $1.4 billion. The two companies are also partnering to embed Harmattan AI’s technology into Dassault’s combat aviation systems. The proceeds of the round will be used to scale Harmattan’s manufacturing capabilities and expand into new military domains.
Founded in 2024, Harmattan AI has largely flown under the radar compared to other European defense success stories such as Germany’s Helsing, quietly raising capital from investors including W Ventures and Tholus Capital.
In its short lifespan, the company has already secured a multimillion-dollar contract from a NATO government for AI-enabled small drones and a contract from the UK Ministry of Defence for 3,000 unmanned aerial systems.
European governments are increasingly turning to startups to enhance the technological capabilities of their armed forces, resulting in increased spending that has drawn more investors to the space.
According to PitchBook’s first look data for defense tech investment in Q4, deal value globally reached a record $49.1 billion for the year. The space minted two European unicorns in 2025: drone makers Quantum Systems and Tekever.
Appetite for defense tech is expected to be even stronger this year, but some investors have raised concerns of overheating in some corners of the market, namely drones. |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Smart reads that caught our eye.
• Medium rare, robot? Ecommerce mogul Marc Lore's Wonder is leaning into automation to change restaurants in the way Amazon reshaped shopping. [Bloomberg]
• Scotland's space sector is at the cutting edge of satellites, but government funding cuts are holding it back. [Financial Times]
• Welcome to the wacky world of factor ETFs, where Tesla may be a value stock. Lesson: Funds that sound the same may be very different inside. [The Wall Street Journal] |
|
|
|
|
|
| |
| Since yesterday, the PitchBook Platform added: |
|
196
Deals
|
863
People
|
303
Companies
|
6
Funds
|
|
|
| | | | | |
