AI, dual-use and spacetech are new leaders in debt funding

The landscape for debt funding has shifted notably in the first half of 2026, with companies in artificial intelligence (AI), dual-use technologies, and spacetech emerging as prominent recipients. While overall deal counts may have slightly decreased compared to the same period in 2025, the sectoral composition reveals a significant tilt towards these advanced technology areas.

Historically, debt financing was primarily associated with capital-intensive sectors. However, this has evolved, with a growing number of tech companies now seeking debt to scale their operations. This adjustment in the market necessitates a recalibration from lenders to accommodate these new sectors' unique financial profiles and growth trajectories.

Significant debt rounds in early 2026 include those secured by AI companies such as Kandis and Scrive. Spacetech firms, like ICEYE, have also attracted substantial debt financing, reflecting increased investor confidence in the sector's potential. Furthermore, companies operating in dual-use technologies, which have applications in both civilian and military domains, are demonstrating strong appeal for debt providers.

This trend is not limited to large, established corporations. Smaller, rapidly scaling startups are also successfully accessing debt facilities, indicating a broadening of debt financing opportunities. The ability to structure appropriate debt packages and negotiate favorable terms is becoming a key differentiator for companies in these high-growth technology fields.