Rising Defense Spending Fuels Deep Tech Boom In 2026

INNOVATION

Rising Defense Spending: Fueling A Deep Tech Boom In 2026

Global military spending surged to $2.7 trillion in 2025, growing at more than twice the pace of the prior two decades. The trend is set to continue in 2026 and beyond as governments are seeking technological sovereignty, the ability to design, produce and secure critical defensive and offensive solutions within national and allied ecosystems.

Amid this spending boom, defense tech has become one of the most significant capital magnets in private markets, attracting a wider spectrum of investors, from family offices to private equity to venture funds.

How tech built in Huntsville is contributing to U.S. defense in Iran

A Huntsville contractor is producing the technology guiding some of the missiles being used for current defense in the Middle East.

In the first 24 hours of Operation Epic Fury, U.S. Central Command said Iranian missiles were taken down by defense systems, including the Patriot Interceptor Missile System.

Defense tech, digital assets and AI take the stage at iConnections 2026 Global Alts Miami

Billed as the “world’s largest cap intro event,” iConnections was back in Miami this week for their 2026 conference, and Refresh Miami had a front-row seat to the action.

The four-day event kicked off on Monday, where attendees swapped suits for athletic gear with a choice between golf or padel outings prior to the opening reception. By Tuesday, the suits were back, and the conversations were all business. Post-opening remarks, iConnections CEO and Co-founder, Ron Biscardi, interviewed Joe Lonsdale, co-founder and managing partner at 8VC, a $6B venture fund with 17 unicorns under its belt. Lonsdale, who is also the co-founder of Palantir Technologies (which recently moved its headquarters to Miami), touched on the shifting landscape of building in the modern era.

INVESTMENT

Israeli defense tech firm Smart Shooter raises $65m in IPO

Smart Shooter, an Israeli defense tech firm that makes electro-optical sights, raised NIS 200 million (US$65 million) in an IPO and will begin trading on the Tel Aviv Stock Exchange.

ARTIFICIAL INTELLIGENCE

All Too Quiet on the Western Neuroenhancement Front

The United States and its allies should accelerate research and development in neurostimulation to expedite its deployment. As China’s military brings biotechnology and AI together, and as “neurotech” products rapidly hit the market, democratic states risk ceding a critical advantage. The practical and ethical challenges in neuromodulation are real, but that is precisely why they demand a forward-looking and coordinated response rather than treading water.

TECHNOLOGY

Billions in new marine defense industry construction could be headed to Texas

Texas is a magnet for complex, critical manufacturing, says Gov. Greg Abbott, and the latest announcements appear to confirm growing interest in the state as a marine defence spending hub.

As reported by the Daily Commercial News in July 2025, Chantier Davie Canada Inc., Canada’s largest shipbuilder, has acquired Gulf Copper & Manufacturing Corporation’s shipbuilding assets in Galveston and Port Arthur, Texas. Davie announced the closing of the deal on Dec. 2, 2025.

Exclusive: Neros and CX2 Team Up

Look out, world. The El Segundo bros are teaming up. This morning, CX2 and Neros announced in an exclusive release to Tectonic that they’re teaming up to put CX2’s c-UAS tech onto Neros’ made-in-the-USA quadcopter drones.

EUROPE

Several trends are shifting defense tech toward Europe

Donald Trump’s break with the liberal democracies of Europe couldn’t have come at a worse time for U.S. defense and tech giants, whose market dominance will be challenged by European competitors riding several favorable trends.