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April 21, 2026
DeepTech
Elena Obukhova

Why European Defence Tech Keeps Appointing the Wrong Commercial Leader and What Investors Are Missing

Why the Commercial Leadership Role in Defence Tech Is a Different Job

The instinct when a European defence tech company hits Series A or B is to run the same commercial leadership search that worked at a B2B SaaS company. ARR background. Enterprise sales track record. Strong pipeline management. Someone who can build a repeatable go-to-market motion. That instinct is understandable. It's also wrong.

Defence tech revenue does not come from a funnel. It comes from relationships, procurement cycles, and tender processes that can run 18 to 36 months before a euro changes hands. The defence tech buyer is usually a government ministry, a defence prime, a NATO agency, or a critical infrastructure operator, not a VP of Operations signing off on a SaaS subscription. These buyers do not respond to outbound sequences. They don't book demos. They don't convert at the end of a quarter because you offered a discount.

One defence tech commercial leader we interviewed, operating across a defence and autonomous tech business with a $500 million pipeline and $15 million in late-stage negotiations, described the mechanics precisely: "Success in defence tech requires getting involved early in tenders and RFQs, navigating ministries, building urgency inside procurement processes, and structuring local offset and partnership arrangements that make the deal politically viable for the buyer's home government.” None of that appears in a standard commercial leadership role description.

A second sales candidate, with direct experience selling into government infrastructure bodies and energy operators across Northern Europe, framed the buyer dynamic differently: “These are conservative buyers where trust, delivery track record, and compliance with security protocols carry more weight than product features or pricing. Once you've failed to deliver on a commitment to a defence ministry, the relationship is over, and the word travels further than you'd expect.”

Defence tech investors see a commercial leadership gap and reach for the profile that's worked before. The profile that worked before is built for a different problem.

What the Perfect Commercial Leadership Profile Actually Looks Like in Defence Tech

Non-negotiables for a commercial leader in defence tech

  • The commercial leader has closed government or quasi-government deals, not advised on them or managed the relationship after they closed, but led the commercial process from RFQ to signed contract. The distinction is significant. Defence tech commercial candidates who've "worked with" government clients while sitting in a commercial support role have a different skill set from those who've owned the outcome.
  • The sales leader understands the difference between B2B and B2G sales cycles and has the patience for the second. Many strong enterprise sales leaders structurally struggle with 24-month procurement timelines. It's not a character flaw. It's a mismatch. The best way to identify it is to ask how a candidate has managed board and investor expectations during a prolonged pipeline with no near-term close date. What that answer sounds like tells you more than the CV.
  • A commercial leader in defence tech can build commercial infrastructure from scratch. The European defence tech companies reaching Series B rarely have a functioning CRM, a defined ICP, or a repeatable sales process. They have a founder who has won contracts through personal relationships and technical credibility. The incoming commercial leader is building from zero, not optimising a running machine.
  • The commercial leader has experience working with dual-use or hardware-software product lines. The commercial complexity of a product that is simultaneously a piece of hardware, a software platform, and a regulated defence item requires a different kind of sales discipline than pure SaaS. Defence tech candidates from pure software backgrounds often underestimate the deployment timelines, integration requirements, and compliance obligations that define the actual sales cycle.

What separates a good commercial leader from a great commercial leader in the European defence tech sector

  • An existing network inside the procurement ecosystem. In European defence tech, the difference between a 24-month sales cycle and a 14-month one is often a single relationship, someone inside a ministry who can tell you what the actual decision criteria are, who the internal sponsor is, and what the procurement committee needs to see before they can move. This network cannot be built after joining. It has to arrive on day one. The strongest commercial candidates we've seen in defence tech could name, unprompted, the three procurement officers at the agencies most relevant to their potential employer and had worked with at least one of them.
  • Experience navigating local offset or co-production requirements. Government defence contracts in Germany, France, and increasingly Poland and the Nordics often carry obligations for local industrial involvement, data sovereignty compliance, or co-production agreements with domestic primes. Sales leadership candidates who've structured deals around these requirements, not just handed them to legal, are a minority. They're also considerably more valuable.
  • A track record of managing revenue during a funding gap or programme delay. European defence tech companies face a specific commercial risk: a customer commits, the programme gets delayed, and the company needs to maintain the relationship through 12 months of no payment. Commercial leadership candidates who've navigated this, kept a ministry engaged while a programme was on hold, and restructured a delivery timeline without losing the contract and have been tested in a way that purely commercial operators have not.
  • Multi-government market experience. The European defence procurement market is not unified. Germany, France, the UK, and the Nordics each have distinct procurement cultures, vendor accreditation requirements, and political sensitivities. A defence tech commercial operator who can only navigate one of these markets is structurally limited in a sector where many customers expect multi-country deployment capability.

Red flags of a defence tech commercial leader

  • High-velocity enterprise SaaS backgrounds with no government exposure. The skills transfer less than it appears on paper. The pipeline metrics, the conversion rates, the sales cycle lengths, and the customer success motion, all of it is built around a commercial model that does not exist in defence procurement. We've interviewed multiple technically credible candidates whose first instinct in discussions about government sales cycles was to ask how to shorten them. That instinct, applied in this market, destroys relationships.
  • Defence tech candidates who have only sold to procurement functions inside commercial enterprises. There's a meaningful gap between selling to a VP of IT at a logistics company and selling to a defence ministry procurement committee. Sales candidates who've done the first and position it as government sales experience need scrutiny.
  • Founders who have moved into commercial roles without selling to anyone other than their own network. European defence tech companies produce a specific type of internal commercial leader, someone who can close deals because of the founder's credibility but who has never built a commercial process or managed a team. These candidates present well. They know the product, they know the customers, and they speak the language. But they've never had to build a pipeline they didn't inherit. The transition from founder-adjacent commercial lead to a structured commercial leadership role is harder than it looks.
  • Defence tech leaders who lead with ARR mechanics before understanding the revenue model. In one of our searches, the early attrition among otherwise qualified candidates came down to a single question: how would you describe our revenue model to a new sales hire? Candidates who answered in SaaS terms, ARR, churn, and NRR revealed the limits of their mental model before the second interview.

Where the Defence Tech Commercial Leader Is — and Why It Doesn't Come From Where You Think

The qualified pool for a sales leader at a European defence tech company at Series A or B is small. Smaller than most boards expect when they open the search. The profile is rare because it requires a combination of government sales experience; hardware and software commercial fluency; the patience for long procurement cycles; and the ability to build a team from scratch, one that doesn't cluster in any single feeder company or geography.

The most productive talent sources:

Defence primes and Tier 1 subcontractors 

Leonardo, Airbus Defence & Space, Thales, Saab, and Rheinmetall produce commercial leaders who understand government procurement, offset requirements, and the political dynamics of European defence contracts. The gap is that many of them have only operated inside large, established commercial defence organisations. Moving from a structured prime to a 50-person startup where none of the infrastructure exists is an adjustment that not all of them make. The ones who have done a stint in a smaller venture or spinout in between are considerably stronger candidates.

Critical infrastructure and dual-use hardware businesses are an underused feeder

Sales leaders who've sold fibre optic sensing solutions into ports and government infrastructure bodies, drone monitoring systems to energy operators, or maritime safety systems to shipping ministries have sold into many of the same buyers that defence tech companies are targeting under similar procurement dynamics, similar compliance requirements, and similar timelines. Several of the strongest candidates we've seen on defence tech sales leadership searches came from exactly this background.

Autonomous systems and mobility tech 

Particularly, companies like Einride, Percepto, and Northvolt, which have had to navigate complex government relationships, multi-market expansion, and hardware-software commercial models simultaneously, have produced commercial operators with directly transferable skills. The sales candidates who've built government relationships while also managing investor pressure and delivery risk are particularly relevant.

Cyber intelligence and dual-use software 

Companies like Maltego, which operates in the intersection of law enforcement, intelligence agencies, and enterprise security, have produced commercial leaders who understand classified procurement, security accreditation requirements, and the buyer behaviour of government intelligence customers. This is a small pool, but it maps directly onto the sales operator brief at many European defence tech businesses.

Where not to look for a defence tech commercial operator

Late-stage B2B SaaS businesses with large sales teams are producing candidates who are operationally competent and commercially credible in their own context. That context is sufficiently different from defence tech procurement that the translation cost is high. The candidates aren't wrong, the brief is.

Where to look geographically for a defence tech commercial leader

Geographically, the talent concentrates in Munich, London, and Stockholm. Munich, because of the concentration of defence prime activity and the density of dual-use deep tech companies like Helsing (€1.36B raised), Quantum Systems (€453M raised), and a growing cluster of defence AI and drone companies. 

London, because of the UK's leading position in European defence VC: $2.9B raised in 2025 alone and a mature defence prime ecosystem. 

Stockholm and the Nordics, because of Saab's commercial alumni network and a regional defence procurement culture that has been among the most active in Europe since 2022.

One geography that surfaces candidates but requires careful management: Israel. Several of the most technically credible commercial leaders we've encountered on dual-use and defence-adjacent searches have backgrounds in Israeli defence tech businesses with European operations. These candidates bring genuine B2G sales depth, multi-ministry relationship networks, and hardware-software commercial fluency. The relocation conversation, security clearance implications, and cultural fit require deliberate handling, but the talent is real, and the pipeline is underused by European defence tech companies.

Why Your Defence Tech Commercial Leadership Search Keeps Going Wrong

The brief is written for a different market

Most sales leadership role descriptions at defence tech companies describe the role in enterprise SaaS terms: build the pipeline, own the revenue targets, and scale the team. That framing attracts commercial candidates who think in those terms. The ones who think in government procurement terms, with relationships in the ministries that matter and experience navigating offset requirements, don't recognise themselves in the JD. The sales leadership search starts by eliminating the people it should be attracting.

The stage is wrong for the commercial profile

The sales operator who has scaled a €100M B2G business knows how to manage a large commercial organisation, run a multiple-ministry pipeline, and manage a board through long procurement cycles. That is not the same skill set as building the first commercial process from scratch at a 60-person European defence tech company. The defence tech and dual-use companies that conflate the two end up hiring an operator for a builder role, and wondering why nothing gets built.

The clearance conversation happens too late

Several European defence tech companies require their commercial leaders to hold, or be eligible for, national security clearances. The process for obtaining these can take six to twelve months. When this requirement isn't surfaced in the first conversation, it distorts the entire search – commercial candidates who aren't eligible proceed through multiple rounds, and sales candidates who would have been fine with the requirement never get asked. This issue cost us two months on a recent defence tech search.

What actually works for a defence tech search

1. Start with the revenue model, not the revenue target

Before writing the brief, map your actual revenue sources: government contracts, prime subcontracts, dual-use commercial sales, and framework agreements. Then ask which commercial leadership profile is actually needed to grow each of those channels. The answer may be that you need two different people: a BD director for government relationships and a commercial leader for commercial channels. Conflating those into a defence tech sales leadership brief produces a shortlist of people who can do neither well.

2. Screen on government sales process knowledge explicitly

In the first conversation, ask commercial candidates to describe a specific government procurement they've owned, not managed, not supported, but led. Ask what the procurement committee looked like, what the timeline was, what nearly killed the deal, and how they kept it alive. Candidates with genuine experience have specific, granular answers. Defence tech commercial candidates who've worked around government sales without owning it cannot produce that level of detail.

3. Map the existing network before you assess the candidate

The government and procurement relationships a commercial leader brings to the role are more important than their management style or commercial framework preference. Before second-round interviews, ask sales candidates to describe their network in the procurement bodies most relevant to your defence tech business. A defence tech sales candidate who can name two or three relevant contacts and describe the nature of those relationships is a different proposition from one who describes their "government experience" in general terms.

4. Raise the clearance question in the first screening call

Not because it eliminates commercial leadership candidates but because it resets the timeline expectation for both sides. If a clearance is required and the defence tech sales candidate doesn't hold one, the board needs to understand that the hire won't be able to access certain programmes for the first six to twelve months. Planning for that constraint is far better than discovering it after an offer is accepted.

5. Accept that your defence tech commercial leadership search takes longer and costs less in the end

On our searches in the European defence tech sector, the window from brief to start date has consistently run 18 to 24 weeks. The qualified pool of commercial leaders is thin. The best candidates have government relationships that create long notice periods and occasionally security-related handoff obligations. Compressing the timeline almost always means compromising on the profile. Given the cost of a failed commercial leadership hire in defence tech, where government relationships take years to rebuild, the additional time is well spent.

How to Remunerate a Commercial Leader in Defence Tech

The data here is limited but directional, drawn from live searches and candidate conversations in European defence tech and dual-use hardware businesses in 2025 and early 2026.

  • Base salary: €220k–€280k for a credible sales operator with direct government sales experience and a qualifying network. Defence tech candidates with existing security clearances and documented track records of closing large government contracts sit toward the top of this range.
  • Variable: 30–50% of base, structured against contract value rather than ARR metrics. Milestone-based components, tied to securing a specific programme contract or achieving procurement framework approval, appear more frequently in this market than in standard SaaS commercial leadership structures.
  • Equity: Expected and increasingly important. Several sales candidates we spoke to were carrying significant unvested equity from previous positions, which required buyout structures or patience on the timeline. Defence tech candidates who left defence prime roles to join venture-backed defence tech companies often took a base reduction in exchange for meaningful equity and are now screening future roles on the credibility of the equity position, not the package headline.
  • Total OTE: €300k–€450k is the practical range for a credible defence tech commercial hire. Sales candidates from the defence prime world, particularly those with existing NATO-member ministry relationships, sometimes command more. Defence tech candidates with pure commercial backgrounds but no government network command considerably less and deliver it accordingly.

The One Thing Most Defence Tech Investors Keep Missing

The board conversation about this defence tech hire usually focuses on commercial execution. Pipeline velocity. Conversion rates. Sales team structure. These are the right questions for a SaaS business. For a defence tech company at Series A or B, they're the wrong questions.

The right question is: who does this person know inside the procurement bodies that matter to us, and how well do they know them?

Government procurement in European defence is not a process you can accelerate with the right commercial leadership playbook. It's a relationship you build, maintain, and leverage over the years. The defence tech company that hires a sales operator with the right network shortens its pipeline by the length of the relationship-building phase, which, in some cases, is two or three years.

The European defence tech company that hires a commercial leader without that network and then asks them to build it is paying an executive-level salary to run a relationship-development programme. They'll wonder why the pipeline isn't converting. The answer is that the pipeline isn't the problem. The access is there.

Every strong defence tech commercial candidate we spoke to across these commercial leadership searches asked some version of the same question: 'What contracts do you already have, and who at the customer is our champion?' Their ability to map the existing relationships, identify the gaps, and describe specifically how they would extend the network,  not in general terms, but naming the ministries, the agencies, and the procurement mechanisms, was the single most reliable signal of who could actually do the job.

The Big Search partners with European technology companies across defence tech, dual-use, deeptech, and venture-backed growth. We've executed commercial leadership searches across European cyber intelligence, dual-use hardware, and defence AI businesses. Most companies only realise the brief was wrong after a failed hire has already cost them 12–18 months and set back procurement relationships that took years to build. If you're approaching a commercial leadership search in European defence tech, we're happy to pressure-test your brief against what we're seeing in the market.