Defense tech startups in the US and Europe are seeing increased demand and are eyeing commercial deals due to the Iran war. The sector raised just $869 million globally in 2020, a tenfold increase from the previous year, according to Dealroom. The conflict in the Middle East has led states to modernize militaries and create commercial opportunities for new defense startups. Several defense tech startups reported increased demand from Department of Defense customers since the U.S. and Israel first struck Iran in February, many have offered to buy out capacity or increase production. In Europe, defense tech execs have been increasing commercial discussions with Middle East governments since the start of the war, and interest from Gulf states is increasing. However, decisions will need to be made about whether to double down on the opportunity.