Venture capital investment in Europe's defense sector is growing, with projections pointing to a record $1 billion in funding for 2024, according to Dealroom. Since 2018, VC funding for defense-related tech has reached $3 billion, outpacing other investments in NATO countries and allies by 25%. This rise is driven by geopolitical tensions and the ongoing war in Ukraine, with European startups, especially from Germany, the UK, and France, attracting more capital.
However, most VCs are limited by agreements that restrict direct investment in weapons systems, allowing only dual-use technologies — those with both civilian and military applications. Vestbee has curated a list of the active VC funds in the defence sector, highlighting those with a clear market focus as well as generalists and deeptech funds with substantial investments in defence or dual use startups over the past two years.
Adara Capital
HQ: Madrid, Spain
Ticket size: N/A
Defence or dual use companies in the portfolio: CounterCraft, Constella Intelligence
Adara Ventures is an early-stage deeptech investor focused on cybersecurity, energy transition, data and AI, digital health, components, and digital infrastructure. It invests across Spain, Portugal, France, the United Kingdom, and Ireland. With over €260 million in assets under management and a 20-year track record, Adara has backed 46 companies targeting global B2B markets, including the defence sector. The firm partners with founders who have developed proven products and are ready to scale rapidly.
Airstreet Capital
HQ: London, the UK
Ticket size: $500k-$5M
Defence or dual use companies in the portfolio: Lambda Automata, Modern Intelligence, Delian AI
Air Street Capital is a venture capital firm that invests in AI-first companies at the earliest stages. The firm works closely with founders from day one, helping shape product, market, and technology strategies. Air Street aims to build enduring companies that create lasting market impact, focusing on transformative technologies powered by AI.
Allied
HQ: London, the UK
Ticket size: N/A
Defence or dual use companies in the portfolio: Hadean
Allied focuses on dual use deeptech, investing in founders with intellectual property-rich technologies. The fund is managed by a team of national security experts who understand the infrastructure that underpins everyday life. Allied aims to support startups by fostering connections within this sector.
Angel One Fund
HQ: Lviv, Ukraine
Ticket size: $50k-$200k
Defence or dual use companies in the portfolio: Swarmer
The Angel One Venture Fund, launched by the Ukrainian Catholic University Foundation in late 2022, invests between $50,000 and $200,000 in Ukrainian startups across all technology sectors. With an initial fund size of $1.5 million, its goal is to foster a global mindset among Ukrainian founders and promote a startup culture in Ukraine. In addition to capital, Angel One offers access to entrepreneurial networks, venture communities, and expertise in management and marketing, focusing on pre-seed and seed-stage investments.
Coinvest Capital
HQ: Vilnius, Lithuania
Ticket size: up to €1.6M
Defence or dual use companies in the portfolio: Unmanned Defense Systems
This evergreen VC fund, backed by €30 million in capital, co-invests alongside business angels and other VCs, focusing on sectors of strategic importance to Lithuania, including greentech, life sciences, deeptech, and defence. With a flexible investment structure, the fund provides up to €1.6 million for companies, tailoring investments through equity or convertible loans. Typically, it co-invests with at least three accredited business angels, offering profit-sharing in the case of successful exits.
D3 Venture Capital
HQ: Kyiv, Ukraine
Ticket size: $1M
Defence or dual use companies in the portfolio: Buntar Aerospace, Zvook, Frontline
D3 Fund, a $30 million early-stage defence fund led by former Google CEO Eric Schmidt, invests in founders dedicated to defending democracy through technology. Focusing on drones, autonomy, AI, cyber, and demining, D3 provides funding, mentorship, and access to a global network of security leaders. Launched in 2022 to support Ukraine's defense tech ecosystem, the fund bridges Ukraine’s innovative defense capabilities with NATO allies, facilitating rapid product iterations and commercialization. D3 also offers tailored support for startups, including assistance with scaling and navigating certifications.
Entropy Industrial Capital
HQ: London, the UK
Ticket size: $250k-$1M
Defence or dual use companies in the portfolio: Lambda Automata
Entropy Industrial Capital is a seed fund investing up to $1 million in founders transforming critical industries, with a focus on sustainability, sovereignty, and automation. In addition to capital, Entropy leverages an extensive network of conferences and customers to accelerate business outcomes for its portfolio companies. The fund prioritizes innovative solutions that reimagine foundational sectors, including defense and dual use intelligence technologies.
Expeditions Fund
HQ: Warsaw, Poland
Ticket size: €250k-€2.5M
Defence or dual use companies in the portfolio:Disruptive Industries, Labrys, Calypso AI
Expeditions Fund is an early-stage venture capital firm focused on deeptech, investing €250k to €2.5 million in mission-driven B2B SaaS companies. Founded in 2021 from the Firlej Kastory family office, it targets sectors like cybersecurity, AI, defence, privacy, and advanced computing. The fund supports founders with capital, operational expertise, and access to a global network, aiming for long-term returns and social impact
Frst
HQ: Paris, France
Ticket size: N/A
Defence or dual use companies in the portfolio: Command.ai, Dark Space, UnseenLabs
Frst is a seed-stage venture firm supporting French entrepreneurs with global ambitions. With over €200 million in assets under management, Frst invests early, often before a company is officially founded. Built by entrepreneurs, the firm offers strategic support and aligns long-term interests with founders. To date, Frst has invested in over 50 companies, providing capital and expertise to help them scale internationally.
Gallos Technologies
HQ: London, the UK
Ticket size: N/A
Defence of dual use companies in the portfolio: Second Front Systems
GALLOS Technologies invests in and co-builds early-stage security technology firms, from pre-seed to Series B, focusing on long-term growth. Unlike traditional venture capital firms, GALLOS provides patient capital and leverages its extensive networks to help companies scale. The firm addresses modern security challenges in AI and big data, where traditional defense capabilities are becoming obsolete. Supported by a team of experts, GALLOS collaborates with innovators to develop impactful solutions for the evolving digital security landscape.
Green Flag Ventures
HQ: Kyiv, Ukraine and Los Angeles, California
Ticket size: $150k-$1M
Defence or dual use companies in the portfolio: Kara Dag Technologies, Himera
This $20 million fund invests $150,000 to $1 million in Ukrainian early-stage startups focused on dual-use, AI, and cyber technologies. Its mission is to connect Ukrainian innovators with Western markets, ensuring their scalable solutions meet global demand. Leveraging deep expertise in US and Ukrainian tech ecosystems, the fund supports companies poised to lead in global security and next-generation technology.
HCVC
HQ: Paris, France
Ticket size: €500k-€2M
Defence or dual use companies in the portfolio: Lambda Automata, Alpine Eagle, Delian AI
HCVC is a Paris-based venture capital firm specializing in "hardtech," with a particular focus on sectors like defence, climate, and aerospace. Recently, HCVC closed its second fund at $75 million, aiming to invest in pre-seed and seed-stage startups across Europe and North America. The firm plans to conduct approximately 10 deals per year, with investment sizes ranging from €250,000 to €2.5 million.
HV Capital
HQ: Munich, Germany
Ticket size: €500k-€10M
Defence or dual use companies in the portfolio: Quantum Systems
Founded in 2000, HV Capital deploys capital across all growth stages. The approach includes early-stage rounds ranging from €500,000 to €10 million, growth-stage investments of up to €60 million, and follow-on investments reaching up to €100 million per company. In 2023, HV Capital announced its largest fund, Fund IX, exceeding €700 million in size, targeting companies from seed to Series D and beyond.
IQ Capital
HQ: Cambridge, the UK
Ticket size: £500k-£10M
Defence or dual use companies in the portfolio: QuadSAT, Nu Quantum
Based in the UK and connected to the Cambridge tech scene, IQ Capital focuses on early-stage deep tech venture capital. It invests £500,000 to £10 million per company in sectors like computer science, energy, life sciences, fintech, space, and advanced engineering, targeting disruptive areas such as generative AI and cybersecurity. The fund has backed over 30 startups in the past three years and seeks seed and Series A opportunities with strong deep tech IP, offering follow-on investments of up to £30 million through its Growth Fund.
K Fund
HQ: Madrid, Spain
Ticket size: €100k-€10M
Defence or dual use companies in the portfolio: XRF
K Fund invests in founders across Southern Europe and Latin America, from seed to Series B, focusing on sectors such as IT, gaming, IoT, Big Data, mobile, and e-commerce. The fund deploys between €100,000 and €10 million, backing differentiated tech products and services with straightforward terms. Recently, K Fund invested €2.3 million in defence tech company XRF. With the European defence sector poised for growth, K Fund sees significant potential in dual-use technologies.
Kima Ventures
HQ: Paris, France
Ticket size: €150k
Defence or dual use companies in the portfolio: Command.ai
Kima Ventures, headquartered in Paris with an office in London, is one of the most active early-stage investors globally, making 2-3 investments per week. The fund commits €150,000 to 100 new deals annually, demonstrating flexibility across stages, deal sizes, and sectors. Operating from seed to Series A, often as a lead investor, Kima Ventures supports startups with team building, learning, focus, and growth strategies.
Lemonade Stand
HQ: Tallinn, Estonia
Ticket size: €50k-300k
Defence companies in the portfolio: SensusQ, Black Swan
Lemonade Stand is a venture capital fund that targets early-stage B2B investments in Baltic and Eastern European founders, regardless of their size, industry, or development stage. The fund's primary mission is to invest in startups aiming to scale their businesses, introduce innovative solutions to the market, and create value for their stakeholders.
Lightspeed Venture Partners
HQ: London, the UK (European offices)
Ticket size: $1M-$100M
Defence or dual use companies in the portfolio: Helsing, Anduril, RobCo
Lightspeed Venture Partners, founded in 2000 and headquartered in Menlo Park, California, is a global venture capital firm with $18 billion in assets under management. Operating in the US, Europe, Israel, India, China, and Southeast Asia, Lightspeed invests across enterprise, consumer, health, and fintech sectors. The firm has supported over 500 companies from seed stage to Series F, providing both growth capital and private equity. Recently, Lightspeed participated in the €450 million Series C round for Helsing, one of the most prominent defense startups in Europe.
Offset Ventures
HQ: London, UK
Ticket size: €100k-€200k
Defence or dual use companies in the portfolio: Labrys, Solideon
Offset Venture invests in security and resilience technology across the U.S. and Europe, supporting governments and companies within the Allied Defense Industrial Base. Focused on next-generation technology, Offset addresses the gap in specialized defense investment. The fund aims to help the U.S. and Europe maintain a technological edge against strategic competitors. In addition to providing capital, Offset offers access to differentiated talent and market insights, aiding governments and militaries in navigating the evolving defense landscape.
OTB Ventures
HQ: Warsaw, Poland and Amsterdam, the Netherlands
Ticket size: €1M-€7M
Defence or dual use companies in the portfolio: ICEYE, Hydrosat
Launched in 2017, OTB Ventures is a leading deeptech venture capital fund in CEE, managing over $350 million. In March, OTB Ventures closed its second $185 million deeptech fund, the largest to be raised in the region, to invest in in spacetech, enterprise automation & AI, cybersecurity, and fintech infrastructure startups from the region and beyond.
Plural
HQ: London, the UK
Ticket size: N/A
Defence or dual use companies in the portfolio: Helsing
Plural Platform is an early-stage venture capital firm that has recently closed a new €400 million fund to support ambitious founders on transformative missions. Backed by LPs from both sides of the Atlantic, Plural has invested in 26 companies across six countries in just 18 months. The firm focuses on sectors such as AI, frontier tech, climate and energy, and health and biotech. Led by experienced founders-turned-investors, Plural offers hands-on, deep support, working closely with a select number of startups each year.
Project A
HQ: Berlin, Germany
Ticket size: €1M-€10M
Defence or dual use companies in the portfolio: ARX, Labrys, Quantum Systems
Project A Ventures is an early-stage tech investor focusing on climate and energy, resilience and defence, financial technology, and global supply chains. It invests between $1 million and $10 million, with up to $30 million available for follow-on funding. Unlike typical VC funds, Project A offers extensive operational support through a 100-expert platform, providing expertise in technology, growth, data, and talent. The fund takes a long-term partnership approach, investing from pre-ideation through Series A and beyond. Since 2012, it has backed over 130 companies, primarily in Europe.
Prima Materia
HQ: Stockholm, Sweden
Ticket size: N/A
Defence or dual use companies in the portfolio: Helsing
Prima Materia is a European company that builds long-term businesses focused on solving societal challenges through technology. Unlike traditional investors, it partners with founders at the earliest stages to co-create companies in sectors like clean energy, AI, healthcare, and natural resources. The firm works with a small, select portfolio to ensure deep involvement and meaningful impact.
SFC Capital
HQ: Northwich, the UK
Ticket size: N/A
Defence or dual use companies in the portfolio: Marble Aerospace
SFC is a UK-based venture capital firm focused on investing in innovative startups through partnerships with universities, spin-outs, accelerators, and angel investors. With over £150 million in assets under management, SFC operates the UK’s leading SEIS Fund, investing in 15-20 companies per fund to build diverse portfolios across sectors such as B2B software, fintech, medtech, and green tech. Its follow-on All-Star EIS Fund reinvests in 10-15 of the top-performing portfolio companies.
ScaleWolf
HQ: Vilnius, Lithuania
Ticket size: N/A
Defence or dual use companies in the portfolio: Blackswan Space, Aktyvus Photonics
ScaleWolf is a venture capital fund and technology accelerator based in Vilnius, focused on dual-use technologies for defence and commercial applications. In collaboration with the Lithuanian Ministry of Economy and Innovation, ScaleWolf assists regional companies in developing and scaling their dual-use tech businesses. The program consists of a 6-week Pre-Accelerator and a 10-week Accelerator, providing funding, insights into government markets in Europe and the US, and support for defense-oriented product development.
SMRK
HQ: Kyiv, Ukraine
Ticket size: $1.5M
Defence or dual use companies in the portfolio: Osavul, Aspichi
SMRK is a Ukrainian venture fund, founded in 2013, that invests in startups across various stages, with a focus on seed and pre-seed rounds. Specializing in IT products, SMRK backs projects targeting the global market, particularly in the B2B and B2C sectors. The fund seeks startups with strong value propositions, professional teams, and impactful solutions. Beyond capital, SMRK leverages its own entrepreneurial experience to help startups scale.
Tiny VC
HQ: London, the UK
Ticket size: €150-200K
Defence or dual use companies in the portfolio: Command.ai
Tiny Supercomputer Investment Company backs ambitious tech startups at their earliest stages, investing €150,000 to €200,000 primarily in European pre-seed and seed companies. Since 2017, it has supported over 350 startups. While Tiny does not lead rounds or join boards, its team and a community of over 600 founders offer valuable support in finding investors, solving challenges, and making strategic decisions.
ZAS Ventures
HQ: Kyiv, Ukraine
Ticket size: $50k-$200k
Defence or dual use companies in the portfolio: Mantis Analytics
ZAS Ventures is an early-stage VC fund focused on investing in SaaS and cloud startups from Central and Eastern Europe, particularly Ukraine, targeting the US market. Led by a Ukrainian-American team of founders and operators, the firm provides global capital, expert networks, and hands-on mentorship. With deep regional expertise, ZAS Ventures offers long-term support to help local startups scale and succeed in North America.
201 Ventures
HQ: Madrid, Spain
Ticket size: $250k-$1.5M
Defence or dual use companies in the portfolio: Lambda Automata, IONLACE, Hypersonica
201 Ventures is a European venture capital fund focused on promoting freedom and autonomy by investing in pre-seed and seed-stage startups within the intelligence, defence, and dual-use technology sectors. Known for its willingness to embrace technical risk and back ambitious projects, the fund prioritizes companies with high-impact potential in the defense sector. With a service-oriented approach, 201 Ventures seeks proactive, innovative entrepreneurs committed to solving complex challenges.
360 Capital
HQ: Paris, France
Ticket size: €150k-€10M
Defence or dual use companies in the portfolio: UnseenLabs, Preligens, Exotrail
360 Capital is a Pan-European early-stage VC firm, based in Paris and Milan, focused on deeptech, climate tech, and digital solutions. With over €500 million in assets under management, it invests €150,000 to €2 million at pre-seed and seed stages, and €2 million to €10 million at Series A/B. Founded in 1997, 360 Capital has backed over 150 startups, with a recent focus on tech-heavy sectors like robotics, spacetech, and climate tech, including energy storage and waste recycling.
42CAP
HQ: Munich, Germany
Ticket size: €0.5-€3M
Defence or dual use companies in the portfolio: Osavul
This German venture capital fund specializes in early-stage investments in technology-driven B2B software companies across Europe. It invests €500,000 to €3 million in seed-stage startups, focusing on companies with significant market potential, product-first approaches, and data-driven models. The fund aims for significant ownership stakes and supports rounds designed for an 18-month runway to ensure long-term business growth.
6 Degrees Capital
HQ: London, the UK
Ticket size: €1M-€5M
Defence or dual use companies in the portfolio: Disruptive Industries
6 Degrees Capital is a European venture fund investing in fintech and SaaS startups from Seed to Series B. Based in the UK and Belgium, it primarily focuses on Europe but allocates up to 20% of its capital to emerging markets, backing companies in Africa, LATAM, and Southeast Asia. With initial investments of €1-5 million and up to €10 million reserved for follow-ons, 6 Degrees Capital helps its portfolio companies scale geographically and attract follow-on funding from top global investors. The firm prioritizes disruptive technologies with strong unit economics and scalability.
7 percent Ventures
HQ: London, the UK
Ticket size: $250k-$2M
Defence or dual use companies in the portfolio: True Anomaly, Castelion
7percent Ventures invests in early-stage startups focused on defense, dual-use aerospace, and AI, with initial ticket sizes of £400k/$500k. The firm typically participates in a startup’s first or second funding round, backing ambitious founders aiming to solve significant global challenges. With a portfolio of over 160 startups and 240 founders, 7percent seeks moonshot opportunities that can deliver 200x returns, often bypassing less risky ventures. Founded by former entrepreneurs with experience in the UK and U.S., the firm provides deep support and transatlantic connections to help founders scale groundbreaking technologies.
