MOD hosts first defence Dragons' Den for UK SMEs

Imagine Dragons’ Den, but for defence tech you could also find in hospitals and classrooms. On 6 February 2026, the Ministry of Defence ran its first Dragons’ Den‑style showcase: ten UK SMEs pitched dual‑use ideas to more than 100 potential backers at Grant Thornton UK, with the MOD acting as matchmaker between innovators and investors. (gov.uk)

Why now? The government wants defence to pull more weight in jobs and growth, and has committed to lifting defence and intelligence spending to 2.6% of GDP from April 2027 - billed as the biggest sustained rise since the Cold War. That budget direction sets the stage for investor showcases like this one. (gov.uk)

Dual‑use means the same invention can serve civilians and the military. Think small drones for search‑and‑rescue that can also spot enemy kit; medical imaging that guides hospital care and battlefield triage; or AI that maps flood damage as well as detects threats. This is why you’ll see start‑ups, not just the big defence primes, in the room.

The set‑up mirrored the TV format: fast pitches followed by sharp questions. Founders explained the problem they’re solving, why their tech matters, and how they would scale responsibly. Investors pressed on safety, export potential and standards. The promise from officials was practical: we can open doors and help you clear security and compliance hurdles while you grow.

For small firms, the support offer has widened. The new Defence Office for Small Business Growth, launched by Defence Minister Luke Pollard on 27 January at the National Manufacturing Institute Scotland, aims to cut red tape, mentor an initial cohort of around 30 pathfinder SMEs and offer hands‑on help with bidding, cash flow and contract structure. (gov.uk)

Ministers also want more of the budget reaching smaller suppliers. MOD spend with SMEs was £1.2 billion in 2024/25. A new target adds £2.5 billion through to May 2028, taking total SME spend to £7.5 billion - money that, if delivered, should support jobs across regions. (gov.uk)

If you run a small tech company, there is a route into exports too. The UK Defence & Security Exports ‘Export Faculty’ is a free online service for SMEs, and its surgery programme has already offered one‑to‑one support to more than 1,000 businesses since May 2024, from Cardiff and Newcastle to Edinburgh and Belfast. (business.gov.uk)

There’s a Ukraine link as well. In January the MOD confirmed it will open a business centre in Kyiv this year, backed by three years of UK Government funding, to help British firms - especially SMEs - navigate practical hurdles and speed equipment to Ukraine’s armed forces as part of the 100‑Year Partnership. (gov.uk)

What this means for you. Budgets are choices: the 2.6% figure counts the security and intelligence agencies within defence, and it’s funded in part by reducing overseas aid from 0.5% to 0.3% of national income. Expect lively debate about priorities, oversight and value for money - good material for classroom discussion. (gov.uk)

Before we go on, a short glossary to keep us together: Dual‑use - technology with both civilian and military applications; SME - a small or medium‑sized enterprise (up to roughly 250 staff); procurement - how government buys goods and services; venture capital - private investment in early‑stage firms; export controls - rules, overseen by the UK’s Export Control Joint Unit (ECJU), that may require licences before sensitive tech is shared abroad; NATO - the defensive alliance the UK belongs to, which sets standards allies agree to meet. (gov.uk)

Try this in class. Stage a mini‑pitch where students present a dual‑use idea and explain how they would prove safety, ethics and public benefit; role‑play a procurement meeting with one group as MOD buyers and another as an SME supplier; research the opportunity cost of moving aid from 0.5% to 0.3% to fund defence and present the case for and against; map the export‑control steps your product would face.

Where next. Follow‑up matters more than show‑and‑tell, so we will watch for early contracts, the first SMEs supported by the new Small Business Growth office, and whether private investors back prototypes beyond demo day. If you’re a founder, bookmark the Export Faculty and DOSBG pages and sketch your checklist: compliance, financing and a path to scale. (business.gov.uk)