The round values the German firm at US$18 billion
Canadian pension fund CPP Investments has taken part in a US$1.8bn funding round for German defence startup Helsing, which the company said on Monday values it at US$18bn.
Reuters reported that the Series E round also drew US venture capital firms including Dragoneer Investment Group, Lightspeed Venture Partners, General Catalyst, Iconiq and Disruptive, alongside US banks Goldman Sachs and JPMorgan.
CNBC identified JPMorgan Chase, Lightspeed and Iconiq among the new and existing backers.
“Investor demand significantly exceeded the available allocation, reflecting strong and growing confidence in AI-driven and software-defined defence technology,” Helsing said in a press release.
The company added that it remains, in its own words, “predominantly European-owned, underscoring its deep roots in Europe.”
The raise landed weeks after Helsing reworked how it compensates staff.
Bloomberg reported that the company asked current and former employees in May to switch from an employee stock option plan, or ESOP, to a program without direct equity, and that several of them contacted lawyers to oppose the move.
The change came after Helsing switched to a European corporate registration from a German one in June 2025, a step Bloomberg noted companies often take before an initial public offering.
Under the replacement, a virtual stock option plan or VSOP, employees receive payouts tied to the share price if the company lists but hold no direct equity.
Those payouts are taxed as regular income and, in most cases, carry no shareholder voting rights.
Helsing told Bloomberg the restructuring was necessary after the corporate change.
The firm said in an emailed statement that it changed the incentive scheme so former ESOP holders could keep sharing in the company's growth.
It added that affected staff were told to seek independent legal advice, and that the "vast majority" accepted the terms.
Not everyone in the field sees VSOPs as favourable to workers.
Frederik Mijnhardt, chief executive officer of startup wealth manager Secfi, told Bloomberg that Europe is "notoriously hard" on equity compensation, with many rules and different tax treatments.
He said companies use phantom stock because it is simpler to issue than real stock, but that VSOPs rarely serve the employee well, offering weaker formal rights and worse tax treatment.
Late-stage venture-backed startups rarely use them, he added.
Founded in 2021, Helsing started with artificial intelligence software for analysing battlefield data before moving into strike drones, underwater surveillance and military aircraft, according to Reuters.
Its HX-2 drones are among the systems supplied to Ukraine’s army with German government backing.
The deal follows a US$1.2bn investment in German drone maker Quantum Systems last week that more than doubled its valuation to about US$8bn.
In the US, rival Anduril raised US$5bn at a US$61bn valuation in May, as per CNBC.
