Europe’s defence and intelligence technology sector is experiencing a decisive inflection point, driven by governments’ growing determination to reduce dependence on non-European vendors for critical national security infrastructure. The movement gained further momentum when Switzerland terminated its contract with Palantir in early 2026, citing concerns over US intelligence agencies’ potential access to sensitive defence data — a development that underscored the urgency of building genuinely sovereign alternatives.
Against this backdrop, Irish startup Octostar has closed an extension of its seed round, bringing total funding to €6.1 million. The investment attracted participation from existing strategic and venture capital investors, alongside new backers including Milan-based venture capital firm The Techshop and several national institutional investors.
Strategic investors back sovereign AI growth
The funding reflects accelerating institutional demand for investigative intelligence platforms that operate entirely outside US jurisdiction. Gianluca D’Agostino of The Techshop described the investment thesis: “Giovanni and his talent-dense team represent a rare combination of deep domain expertise. Octostar is one of the very few teams delivering on such demand.”
The Galway-headquartered company, founded in 2023 by Dr Giovanni Tummarello, Robert Fuller, Simone Scarduzio, and Varun Sharma, has built an AI-native intelligence platform designed for national security, law enforcement, and financial compliance organisations. Its architecture supports deployment in fully air-gapped, No Cloud/No Internet environments — a critical requirement for government agencies that cannot risk data exposure through cloud-based systems.
Octostar’s platform integrates link analysis, communications intelligence, document intelligence, and generative AI-powered investigative agents within a fully sovereign and extensible architecture. Clients can customise workflows and adapt the system to their specifications without vendor intervention, maintaining complete operational independence.
Positioning as a European Palantir alternative
The company has been recognised by Intelligence Online, a specialist intelligence industry publication, as one of only two European alternatives to Palantir in the investigative intelligence space. This designation carries significant weight within the sector, signalling that Octostar has achieved the technical and operational credibility required to compete with the dominant US incumbent whilst offering genuine sovereignty guarantees.
Traction has been building rapidly. In Q1 2026 alone, Octostar completed three new deployments within EU national law enforcement and judicial bodies, with more than 15 expected by the end of the year. The company has also secured national security deployments across the Middle East and Asia-Pacific, and announced joint work with BAE Systems, the UK defence contractor.
CEO Dr Giovanni Tummarello framed the opportunity in geopolitical terms: “Nations are re-evaluating their technology supply chains for intelligence and security. The question is no longer whether sovereign alternatives are needed, but how quickly they can be deployed.”
European defence tech investment reaches record levels
Octostar’s funding arrives at a moment of unprecedented investment in European defence and security technology. Private investment in the sector reached a record €5 billion in 2024, representing a fivefold increase compared to 2019. The European Commission has committed €307 million to advancing trustworthy AI and strategic digital technologies, whilst the European Investment Bank Group has pledged €15 billion through the European Tech Champions Initiative.
The sovereign AI opportunity is substantial. McKinsey estimates that sovereign AI capabilities could unlock up to €480 billion in value annually by 2030 across Europe. However, capturing this value depends on European companies demonstrating genuine technological and operational independence from US jurisdiction — precisely the positioning Octostar has established.
With offices in Galway, a research and development centre in Bergamo, Italy, and a sales presence in London, Octostar is building from a foundation that reflects its cross-border European identity. The company’s previous funding — a €2 million seed round in November 2024 from Italian investors including Cysero, Euveca, and Kilometro Rosso — provided the initial capital to develop the platform and secure early government contracts.
The fresh capital will support expanded deployment capacity and product development as European governments accelerate procurement of sovereign intelligence solutions.
| Company | Octostar |
| Headquarters | Galway, Ireland |
| Founded | 2023 |
| Round | Seed Extension |
| Amount | €6.1 million (total) |
| Key Investors | The Techshop, existing strategic and VC investors, national institutional investors |
| Use of Funds | Expanded deployment capacity and product development |
| Total Funding to Date | €6.1 million |