Welcome to a new episode of the EUVC Podcast, where our good friends Dan Bowyer and Mads Jensen from SuperSeed are joined by Lomax from Outsized Ventures for an unfiltered discussion with Nicholas Nelson, Founding Partner of Archangel, the world’s only next-gen, defense-only VC.
From Helsing’s $11B valuation and the rise of Europe’s “neo-primes” to the drone wall on NATO’s eastern flank and the trillion-dollar AI CapEx cycle, this episode covers the convergence of defense, AI, and capital in shaping Europe’s security and tech future.
🎧 Here’s what’s covered:
04:00 Defense First vs Dual Use
Nicholas explains why dual-use often amounts to “defense-washing,” and why working with primes like Airbus and BAE is still essential.06:00 The State of Play
Russian incursions into Poland, Denmark, and the Baltics and why startups must skate to where the puck is going, not where it is.07:30 Helsing’s $11B Move
Europe’s “AI defense prime” buys 50-year-old Grob Aircraft - the logic behind startups acquiring legacy manufacturers.11:00 Roll-ups & Revenue
Why Helsing’s model mirrors Anduril’s, but with a European twist: buying revenue and customer access first, R&D later.14:00 Capital Intensity & Market Access
Mads on Helsing’s vertical integration, prime-status ambitions, and how capital lets them buy credibility and distribution.17:00 Defense Spending Reality
Europe’s re-armament didn’t start in 2022 - spending has been climbing since Crimea in 2014. Helsing’s timing was perfect.19:00 Drones & Electronic Warfare
Why the “drone wall” matters, but EW (electronic warfare) is the real game-changer and startup opportunity.26:00 Europe’s Next War?
Nicholas on Baltic risk: “It’s not if, it’s when.” Why Estonia and Poland are building for resilience, not hope.28:00 Top 3 Mistakes in Defense VC
Why the best tech doesn’t always win, why experience in defense matters, and why credibility beats hype.36:00 Sovereignty vs Reality
Europe talks autonomy but buys American - how strategic dependence, exits, and PE roll-ups collide.40:00 Starlink & Europe’s Space Lag
Can Europe build its own Starlink? Iris² vs Musk’s 12,000 satellites — why sovereignty is slow and costly.47:00 AI Bubble Debate
Jamie Dimon’s 24-month warning, Nvidia’s $73B net income, circular AI investments, and “cash deficits all the way down.”54:00 Efficiency & Open Source
China’s open models catching up within six months - small-model revolution and the threat to LLM margins.59:00 The Inevitable Correction
What happens when efficiency expectations fail - cooling, deflation, not collapse.01:00:00 Final Thoughts
Bubble or not, Europe must adapt - build faster, fund smarter, and prepare for shocks in both defense and AI.
✍️ Show Notes
Europe’s Defense Tech Awakening
Nicholas Nelson (Archangel) argues Europe’s defense revolution started long before 2022. From drone systems to cyber resilience, startups are now core to NATO’s readiness.
Helsing’s $11B Playbook
The “neo-prime” is buying legacy defense firms to gain customer access and contracts. A private-equity roll-up strategy executed with venture speed — Europe’s answer to Anduril.
The Drone Wall & Electronic Warfare
Drones are vital for deterrence, but the real opportunity lies in EW — jamming, radar denial, and signal intelligence. A once-neglected domain now attracting startups and capital.
Sovereignty vs Dependence
Europe wants autonomy but still buys American. With Palantir’s UK win and US PE circling defense roll-ups, the question is whether sovereignty can coexist with global capital.
Procurement & Policy
Defense innovation requires new procurement models — faster pilots, direct contracts, and better risk appetite. Baltic and Nordic nations are showing the way.
AI Bubble or Industrial Boom?
AI CapEx is now bigger than all of European VC combined. Nvidia’s margins are unmatched, but open-source models are eroding the moat. The question: when does efficiency flatten returns?
Trust & Verticalization
As OpenAI moves into applications, vertical AI startups with trusted data and domain expertise will win. Trust becomes the new moat.
💡 One-liner takeaway:
Europe’s future depends on speed and sovereignty — from defense primes to AI stacks, those who build faster and trust deeper will define the next decade.
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