In European defence and aerospace innovation, Leonardo S.p.A., Italy’s leading defence prime, has garnered attention with its aggressive pursuit of startup acquisitions. It’s a compelling story of a traditional company adapting to a new era of warfare, where agility and cutting-edge technology determine competitive advantage. As a serial entrepreneur who has built and scaled startups, I, Violetta Bonenkamp, see Leonardo’s strategy as both an opportunity for startup founders and a cautionary tale. Let’s dive into what this shift means and how startup founders can navigate a world where defence giants are “hungry like a wolf.”
The Main Takeaway
Leonardo is embracing a new strategy aimed at incorporating creative innovation. This move stems from ongoing geopolitical instability, the surging importance of AI, and a drive for sovereign European solutions that mitigate dependence on external powers like the United States or Israel. This could be a massive opportunity for tech startups specializing in AI, deeptech, cybersecurity, drones, quantum, and other frontier technologies.
As a startup founder or entrepreneur, it’s critical to ask yourself:
- Is your tech aligned with the priorities of big primes?
- Are you positioning yourself to benefit from the growing M&A appetite in the defence sector?
Leonardo’s Approach: A Strategic Pivot
Leonardo’s aspiration isn’t just about buying startups, it’s an attempt to become a “Silicon Valley-style” innovator, investing in agility while maintaining the compliance and reliability demanded by its defence clients. In a statement, Simone Ungaro, Leonardo’s co-general manager for strategy and innovation, admitted they’re “hungry for innovation,” increasingly targeting younger disruptors like Helsing and Anduril.
But startups beware: defence primes aren’t VC firms. Their priorities and expectations differ. Understanding this is the first step in seizing the opportunity.
Statistics That Entrepreneurs Need to Know
- European Defence Spending: Defence budgets in the EU have seen a 15% year-on-year increase since 2022 due to geopolitical concerns.
- Boom in Startup Investments: Startups specializing in defence tech raised over €2 billion in funding in 2024, with Helsing closing a €400 million round.
- Startup Survival Post-Acquisition: According to a 2023 Deloitte report, only 30% of acquired startups retain their full autonomy, meaning many get absorbed into the parent company’s infrastructure.
How Defence Tech Startups Can Thrive
For startups eyeing acquisition or partnership opportunities with companies like Leonardo, here’s how you can make yourself an attractive target:
- Align with National Priorities: European governments are prioritizing AI, cyber capabilities, and drone technology to ensure strategic sovereignty. Focus on solutions that cater to these needs.
- Prove Dual-Use Capability: Defence primes want technologies that can serve both military and civilian applications to maximize returns. Develop versatile use cases for your innovations.
- Embrace Compliance Early on: Defence contractors require rigorous compliance. Start building tech with security, scalability, and regulatory standards in mind.
- Build IP Shields: Protecting intellectual property is critical, as defence primes could absorb your innovation while leaving you on the sidelines. Use strategies like blockchain-powered IP validation to safeguard your assets.
- Get Noticed by the Right People: Participating in defence-specific accelerators or winning grants at the national or EU level can help you stand out as a viable partner.
Common Mistakes to Avoid
While mergers or partnerships with companies like Leonardo are attractive, many startups fall into traps that could jeopardize their autonomy or future growth:
- Failing to Negotiate Autonomy: Startups often get absorbed post-acquisition, losing control over their vision. Always negotiate terms that ensure your team retains decision-making power.
- Ignoring Scalability: While your solution might work for a niche application, primes want technologies that can scale across countries and services.
- Underestimating the Defence Sales Cycle: Defence contracts often involve extensive, bureaucratic procurement processes unlike traditional sales cycles. Prepare for longer timelines.
- Over-Reliance on Grants: While grants are helpful, they often come with conditions that could limit your flexibility. Ensure you diversify funding sources to attract private investors or primes.
Insights from Experience
I’ve worked across multiple industries, from creating scaling strategies for deeptech startups to leading projects in blockchain and AI. One thing is clear: startups venturing into the defence sector must master collaboration without compromising their identity. Defence primes like Leonardo often view startups as tools for strategic augmentation. Here, founders must leverage their position to extract value without losing control over their innovation.
Leonardo’s partnerships with companies like Skydweller Aero highlight how smaller firms can make their mark. If you want to see real-life examples, explore Skydweller’s game-changing solar-powered drones and learn how fast pivots helped them scale effectively.
A Step-by-Step Guide to Positioning Your Startup
- Research Current Defence Trends: Study ongoing developments in tech adoption by defence primes. Tools like Sifted Defence Tech Innovations offer excellent insight.
- Highlight AI and Deeptech Capabilities: Defence primes want predictive analytics, autonomous systems, and advanced cybersecurity. Show your competitive advantage.
- Leverage Networks: Use business incubators or accelerators with a defence focus like Yes! Delft or Brightlands to connect with key industry players.
- Demonstrate Impact: Showcase use cases for your technology that address real-world scenarios. Combining results with scalability is vital.
- Pitch Boldly: European primes are now looking for bold ideas rather than cautious iterations. Emphasize the disruptive aspects of your innovation during pitches.
Final Thoughts: A Multidisciplinary Approach Holds the Key
As someone who combines expertise in linguistics, neuroscience, blockchain, and AI, I’d argue leveraging multidisciplinary skillsets will allow you to solve complex challenges creatively, something defence primes adore. Leonardo’s hunger is a wake-up call for startups across Europe. If you’re an entrepreneur, don’t shy away from exploring dual-use opportunities.
Moreover, startups that focus on building sustainable innovations, from cybersecurity platforms to drone systems, will play an instrumental role in reshaping the future of European defense. Navigate these waters wisely, and you may emerge as the next big acquisition Leonardo is “hungry” for.
Now is the time for founders to act, by staying ahead of the curve, aligning with regional priorities, and embracing innovation systems tailored to meet the demands of a new era. Every opportunity starts with the belief in what you offer. Take the first step to preparing yourself meticulously, and let the primes come to you.
FAQ
1. What is Leonardo’s primary goal in acquiring startups?
Leonardo aims to inject innovation into its operations, focusing on cutting-edge technologies such as AI, drones, quantum computing, and cybersecurity. This move aligns with geopolitical demands and the need for strategic sovereignty in Europe.
2. Which startups has Leonardo shown interest in?
Companies like Germany-based AI defence firm Helsing and US-based Anduril have caught Leonardo’s attention due to their advanced defence technologies. Learn more about Helsing | Discover Anduril
3. Why is defence technology gaining prominence in Europe?
Geopolitical instability and the push for reduced dependence on non-European suppliers, such as the US or Israel, have put defence technologies like drones, AI, and cyber capabilities in the spotlight. Read more on defence tech trends
4. How has Leonardo’s market focus shifted?
Leonardo is striving to emulate Silicon Valley by fostering agility and innovation, while balancing the compliance and reliability requirements of defence contracts.
5. What has been the impact of increased defence budgets in the EU?
Since 2022, EU defence budgets have seen a 15% year-on-year increase, fueling startup investments and acquisitions in the defence sector.
6. What is the greatest opportunity for startups working with defence primes like Leonardo?
Startups offering dual-use technologies, those beneficial for both military and civilian applications, have an edge, attracting primes looking for versatile and scalable innovations.
7. What challenges do startups face post-acquisition by defence primes?
Studies show that only 30% of startups fully maintain their autonomy after being acquired, as they often get absorbed into the parent’s infrastructure. Learn more in Deloitte’s startup report
8. How can startups better align with defence sector priorities?
By focusing on AI, drone systems, cybersecurity, and other critical areas identified as strategic national priorities, startups can position themselves as valuable partners.
9. What role does compliance play for startups in defence partnerships?
Defence contracts come with stringent compliance and regulatory requirements. Startups should prioritize building technology that meets these standards from the outset.
10. How can startups gain visibility in the defence tech space?
Participation in defence tech accelerators, gaining grants, and showcasing dual-use capabilities can help startups stand out to primes like Leonardo. Check out Yes! Delft accelerators | Explore Brightlands opportunities
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp’s expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic “without any funding and without any code,” this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call “gamepreneurship”. By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique “play to learn and earn” model.