Long absent from the European venture capital landscape, funds specializing in defense and dual technologies are multiplying like hotcakes. In less than five years, a generation of VCS has emerged at the margins of traditional hubs, carried by an unprecedented alignment of geopolitical, institutional and financial factors.
In June 2023, NATO launched its Nato Innovation Fund (NIF)with a billion euros, its creation is a key point in the development of the sector. This vehicle, unprecedented by its positioning, aims to finance technologies of strategic interest, both civil and military, in the fields of AI, quantum, robotics, space or cybersecurity. Thirty direct investments are planned, but the real scope of the NIF is mainly expressed by its role as Limited Partner With seven European funds have already benefited.
This dynamic had a rapid training effect. In 2024 and 2025, no less than Seven new specialized funds have emerged from Tallinn to Lisbon. An exceptional figure in a general climate marked by the prudence of LPS and the rarity of the first funds. While some of these VCs assume their “defense” positioning, others prefer to speak of “critical technologies”, “sovereign” or “dual-use”, language remains a marker, in a still sensitive area.
A geography of the periphery
The cartography of these funds reveals a salient feature, The center of gravity is moving away from traditional strong places. It is not Berlin, Paris or Stockholm that concentrate the majority of vehicles, but capitals of the eastern flank (Vilnius, Warsaw, kyiv), emerging ecosystems (Tallinn, Liège, Lisbon) or interstitial hubs like The Hague.
The example of Lithuania is emblematic, two funds are already active there: Scalewolfcreated in 2022, and BSV Venturessupported by the NIF. In Vilnius, the experience of the Russian neighborhood and the development of a dual industrial base (Cyber, Drones, Satellite) accelerated strategic awareness. Same phenomenon in Madrid, where the fund 201 venturesalso linked to NATO, posted thesis to support startups that meet the needs of European armies in a cross -border framework.
A response to the impasse ESG
The return of the defense in the venture capital analysis grids also raises the question of extra-financial criteria. The rules ESG Classic (Environment, Social, Governance) have long excluded defense in the name of principles inherited from responsible finance. A nonsense for several public actors, who see in technological resilience and the safety of states a new ethical imperative.
There European Commission and the European Investment Fund (FEI) started to influence their position. In 2024, the FEI announced a specific mandate of 175 million euros for investing funds in defense technologieswhile encouraging a redefinition of ESG criteria to include a pillar “D” for defense, a still discreet, but structuring development.
A strategic alignment effect
This wave of specialized funds is not only part of a financial logic. She reflects a redefinition of industrial priorities in Europe. After having long externalized its critical capacities, the continent strives to rebuild value chains in armament, electronics, energy or sovereign cloud. The VCs play a starting role here, but also raises the question of the scaling, which will finance the B and C series? Who will support industrialization? The answer remains open, but several initiatives emerge, in particular on the side of family industrial offices and sovereign funds. A point that could be critical if it is not quickly addressed.
After being widely set back, the Public Investment Bank (BPI) is about to launch the fund Bpifrance Defense which will allow individuals to invest in unlisted companies whose activity serves the issues linked to national defense sovereignty. This fund aims to have 450 million euros
Another initiative in this sense, the BPI reappears the doors of the Innovation Defense fund with a fundraising with Allianz France and Mbda, thus bearing the size of the fund 275 million euros. In addition to private subscribers, Bpifrance and the Caisse des Dépôts will abound the fund, which now targets a target size of 300 million euros.
At the end of March 2025, the Ministry of Defense and Bercy mobilized all French investors to finance the 4,500 defense companies with the aim of unlocking a total of 5 billion funding for the sector.
Expanding Watchlist
The list below brings together a series of identified funds as active, in Europe, in the financing of defense or Dales technologies. (To complete this list, do not hesitate to tell us assets not referenced at redaction@frenchweb.fr)
2025–2024
- Secret -The Hague, the Netherlands
- Final Frontier – Copenhagen, Denmark
- Twin Track Ventures -London, United Kingdom
- FNX Ventures – Liège, Belgium
- Hyperion Fund – Madrid, Spain
- Double Tap Investments Ltd – Finland
- Defense Invest – Ireland
- Tikehau European Sovereignty Fund – Luxembourg
- Isalt – France
2023–2022
- 201 ventures -Madrid, Spain (Nato-Backed)
- D3 Venture Capital Firm – kyiv, Ukraine
- Scalewolf – Vilnius, Lithuania
- Entropy Industrial Capital -London, United Kingdom
- BSV Ventures -Vilnius, Lithuania (Nato-Backed)
- Erected (Weinberg Capital) – France
- UFO Capital – France
- Defense Angels – France
2021–2020
- MD One Ventures -London, United Kingdom
- Fund Expeditions – Warsaw, Poland
- Vsquared ventures -Munich, Germany (Nato-Backed)
- Alpine Space Ventures -Munich, Germany (Nato-Backed)
- Osney Capital -London, United Kingdom
- Offset Ventures -London, United Kingdom
2019–2018
- Allied VC -London, United Kingdom
- Archangel / Superangel – Tallinn, Estonia
2017–2016
- OTB Ventures – Warsaw & Amsterdam
- Presto Ventures – Prague, Czech Republic
2015–2014
- Capital Join – Berlin, Germany
- Keen Venture Partners -Amsterdam, Netherlands
2013
- Faber -Lisbon, Portugal (Nato-Backed)
- NUNC Capital BV -Amsterdam, Netherlands
