8 European funds now exist to back defence tech

8 funds now exist in Europe specifically to back defence tech. 4 years ago almost none of them did.

The funds

• NATO Innovation Fund, €1 billion, backed directly by NATO allies.

• Expeditions, Warsaw, €197 million second fund. LPs include BAE Systems, the NATO Innovation Fund and Poland’s state development fund.

• Keen Venture Partners, Amsterdam, €180 million, with €40 million from the European Investment Fund.

• Darkstar

• D3

• Green Flag Ventures

• ScaleWolf

• Hyperion Fund

What changed

Most of this capital would not have touched defence back then. LP mandates blocked it, ESG made it awkward, and government timelines put VCs off. That has changed.

What has not

Since 2019, the US has taken 85% of all defence tech VC funding across NATO allies. Europe’s share last year was 6.2%, up from under 1% before 2020. Growing fast, still tiny.

If you are a European defence company raising right now, the cheque you need probably exists. It is just written by fewer hands than you would think, and most of them are under 3 years old.