As war continues between the United States and Iran, defense startups are gaining increasing prominence. The nature of warfare is shifting from human-centered operations to technology-driven ones involving artificial intelligence (AI), drones and robots, while tech startups are leveraging their technological capabilities to expand into the defense sector. As a result, these startups are expected to amplify their voices by strengthening networking with military officials and calling for policy support.
The Korea Startup Forum (KoSpo), a domestic startup association, is pushing to establish a new council dedicated to the defense sector, industry sources said on the 29th. The organization is recruiting defense-related startups as member companies to support the initiative.
KoSpo operates industry-specific councils covering areas such as AI, telemedicine and legal tech. Member companies gather by council to discuss industry policies and regulations and to represent the voice of their respective sectors. The move to form a defense council is interpreted as an effort by startups in the field to collectively advocate for policy support.
KoSpo is not the only organization seeking defense startups. The organizing office of the Korea International Defense Industry Exhibition (KADEX), scheduled for October at Gyeryongdae military headquarters in Daejeon, recently began recruiting startups to participate. The exhibition, hosted by the Korea Army Association, is held biennially. The startup pavilion allocated for this year's show comprises 40 booths — more than double the 15 booths two years ago. Startups including Pablo Air and Weflo are reportedly reviewing participation favorably, as the event offers a chance to meet military officials and domestic and international defense industry executives to explore business opportunities in one place.
Bluepoint Partners, a deep-tech accelerator, is dedicating efforts specifically to connecting startups with military officials. Its strategy is to address the pain points of companies that possess battlefield-applicable technology and products but lack the channels to enter the defense business. Bluepoint Partners has invited representatives from the European Defence Tech Hub (EDTH) to a seminar it is hosting on the 3rd of next month. EDTH is a platform that connects startups and hackers interested in the defense sector with European military officials and defense industry executives. About 70% of the roughly 40 startups attending the seminar are tech companies hoping to enter the defense field.
The trend stems from the rising prominence of startups with relevant technologies, as AI and drones have been deployed as weapons in the Russia-Ukraine war and the U.S.-Iran conflict. Global venture capital investment in defense technology reached $49.1 billion last year, jumping more than 80% from $27.2 billion the previous year, according to PitchBook, a global market research firm. "Overseas, there are startups whose valuations rise after their technology and products undergo field testing," said Choi Won-ki, senior analyst at Bluepoint Partners. "Given Korea's strengths in manufacturing, connecting those capabilities effectively could produce competitive startups in the defense sector as well."