The European Investment Fund (EIF) announced a €40M investment in Amsterdam’s Keen Venture Partners’ European Defence and Security Tech Fund.
This is the first EIF-backed fund in Europe focused solely on defence, security, and space technology. Keen plans to reach the first close of the fund in the third quarter of 2025.
Europe’s need for defence tech entrepreneurs
Europe needs to increase its defence efforts due to the ongoing conflict in Ukraine and pressure from the US to share more of NATO’s defence responsibilities. The region has not invested enough in defence and must now improve.
Greater investment, including support for startups and scale-ups through venture capital, is seen as key to boosting innovation and delivering new technologies faster.
Private investment is being positioned as a key factor, with startups and scale-ups supported by VC expected to contribute new technologies and dual-use solutions. A report by the Kiel Institute suggests that increasing defence spending from 2 per cent to 3.5 per cent of GDP and focusing on European-made systems could boost GDP by up to 1.5 per cent each year.
To build a strong defence tech ecosystem, venture capital is crucial for rapidly scaling these solutions and driving long-term impact, mentions Keen Venture Partner in a statement.
Aim of the fund
In January, Keen announced that it is in the process of raising a €125M defence technology fund. The EIF has committed capital to the fund, which will support 20 to 25 companies from the seed to Series B funding stages. The fund will focus on defence, security, and space technologies.
Alexander Ribbink, Keen Venture Partners, says, “The mission to make Europe stronger and safer by empowering defence tech entrepreneurs receives a major boost with this EIF investment in our fund.”
“Strengthening Europe’s defence and security through private capital, combined with the ingenuity and perseverance of entrepreneurs, is only just beginning. We’re proud to see the EIF take a catalytic role in mobilising private investments for this vital cause,” adds Giuseppe Lacerenza, Partner at Keen.
Knowledge and connections for growing startups
Keen Venture Partners has knowledge and connections in the defence tech field. The fund keeps track of over 800 defence tech companies in Europe, more than any other fund in the region.
It has formed an advisory board with experts who have backgrounds in the military, defence technology business, and policy. The fund also welcomes larger investors who have experience in defence tech.
Keen aims to develop the European defence technology sector by investing in technologies that can be used for both defence and civilian purposes, like disaster management or environmental monitoring. Its focus aligns with the European Defence Fund and NATO strategies.
Some companies in its portfolio are Eclectic IQ, Rescale, Perciv AI, and Avalor AI.
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