After EIF’s €40M, Amsterdam’s Keen Venture Partners lands another €40M from PME Pensioenfonds for defence fund

Amsterdam’s Keen Venture Partners secures another €40M from PME Pensioenfonds for its defence fund to strengthen Europe’s strategic autonomy.

The Hague-based PME Pensioenfonds announced that it is investing €40M in Amsterdam-based Keen Venture Partners’ European Defence and Security Tech Fund.

The announcement comes around five months after raising €40M investment from the European Investment Fund (EIF).

The funding comes when Keen announced that it is in the process of raising a €125M defence technology fund. 

Notably, it is the first defence tech investment fund based in the Benelux region and aims to become one of the largest funds of its kind in Europe.

Fund utilisation

The fund will focus on innovative European startups and scale-ups specialising in defence and security applications.

With this investment, PME aims to achieve a good return for its participants and contribute to strengthening the Dutch and European defence industry. 

Eric Uijen, Chairman of the Executive Board, says, “PME feels a strong commitment to the defence sector. Many of our employers produce defence equipment or are suppliers to the defence industry. We have also been investing in this sector for a long time. The urgency to invest and innovate in defence has only increased in recent years. The geopolitical reality is changing rapidly. In a world where international relations are under pressure, there is a growing awareness that we in Europe need to invest more in our security and resilience.”

“This investment in the  Keen European Defence & Security Tech Fund aligns with this. With this investment, PME contributes to the development of the Dutch and European high-tech defence sector with, for example, advanced drone software, battery technology, and radar detection. It also aligns with PME’s policy of investing in innovative tech startups and scale-ups, thereby strengthening technological progress and the competitiveness of the Netherlands and Europe. Moreover, these investments are expected to deliver above-average returns. Because that ultimately counts for all our investments: we invest for a good pension for our participants,” adds Uijen.

The Pension Fund of the Metal and Technological Industry (PME) manages the pension rights of approximately 620,000 participants.

The sector includes 1,450 large and medium-sized companies, from shipyards to semiconductor manufacturers. The assets amount to more than €50B.

PME is the fifth-largest fund in the Netherlands and has invested €100M in the first two Innovation Industries funds. 

Keen Venture Partners: Contributing to the European defence tech ecosystem

Keen fund will focus on “dual-use” defence and security technologies in European NATO countries.

These technologies serve both military and civilian purposes, such as drones and radar systems.

For instance, these technologies could be applied in disaster response or environmental monitoring, next applications in the defence tech industry. Keen’s portfolio already includes EclectricIQ, Perciv.AI, and Avalor AI.

Its focus aligns with the European Defence Fund and NATO strategies. 

Alexander Ribbink, Keen Venture Partners, says, “We are very pleased with PME’s participation. As one of the leading pension funds in the Netherlands, its decision is significant. We must build a highly innovative defence industry in Europe. Europe has clearly prioritised security and defence. It’s crucial that the VC funds, which invest in promising start-ups and scale-ups, fully contribute to the ecosystem of established defence companies, knowledge centres, and the financial sector.”