Europe’s largest limited partner, the European Investment Fund (EIF), is diving into defence tech for the first time. The fund has invested €40 million into Amsterdam-based Keen Venture Partners’ debut fund focused on defence, security, and space innovation.
This milestone marks the EIF’s first move under its €175 million Defence Equity Facility, launched in early 2024. The backing also reflects a broader shift across Europe—defence tech is no longer taboo. Instead, it’s quickly becoming one of the continent’s most sought-after sectors for investment.
Europe Rethinks Defence Funding as Geopolitics Shift
Just a few years ago, most European investors steered clear of defence. But that’s changing fast. Rising geopolitical tensions have brought national security to the forefront for governments, founders, and investors alike.
The UK recently committed £400 million to defence innovation. Around the same time, the EU rolled out an €800 billion rearmament plan. Meanwhile, defence startups are landing direct contracts with European governments, boosting their credibility and financial runway.
Companies like Quantum Systems and Helsing have already reached unicorn status. More startups in cyber defence, robotics, and autonomous systems are emerging across the continent. EIF’s latest move ensures there’s more capital ready to fuel them.
Keen’s new fund is still raising capital, with a goal of reaching €125 million. It will target early to growth-stage companies—from seed to Series B—that are building the next generation of European defence technology. The portfolio will include roughly 20 to 25 startups focused on areas like cybersecurity, AI, spacetech, and autonomous platforms.
Backing Strategic Sovereignty Through Innovation
“We can’t depend solely on legacy systems or distant allies,” said Giuseppe Lacerenza, partner at Keen. “Backing our own tech entrepreneurs is now both a strategic necessity and a massive opportunity to build a more sovereign Europe.”
To guide the fund’s strategy, Keen has assembled a heavyweight advisory board. Members include Jaap de Hoop Scheffer, former NATO secretary general, and Kajsa Ollongren, former Dutch defence minister and deputy prime minister. Several retired military officers and seasoned industry experts also support the team.
The firm plans to raise more capital from institutional investors, defence companies, family offices, and high-net-worth individuals with strategic interests in European security.
Keen isn’t alone in this pivot. Other investors are launching dedicated defence funds, including solo GPs like Nicola Sinclair’s Twin Track Ventures, Eric Slesinger’s 201 Ventures, and Kyiv-based D3, which focuses on early-stage defence tech.
At the same time, entrepreneurs from consumer and enterprise tech are entering the sector. For instance, Florian Fournier, cofounder of PayFit, is now building Orasio, a startup that offers AI-powered video intelligence for security.
AI powerhouses like Mistral are also exploring defence use cases. The French startup has been actively pitching European defence agencies and has partnered with Helsing to advance military-grade language model applications.
