EIF Commits €50M to Defence Tech Fund to Boost Europe’s Industrial Capabilities

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has committed €50 million to Join Capital's third venture capital fund, marking its largest investment to date in the defence sector.

The announcement was made during the EIB Group Forum in Luxembourg, as Europe accelerates efforts to strengthen its defence technological and industrial base amid rising geopolitical tensions and growing calls for strategic autonomy.

Supporting Europe's defence innovation ecosystem

The EIF investment is backed by the InvestEU Defence Equity Facility, an initiative designed to support venture capital funds investing in defence technologies, dual-use innovations, security systems and space technologies.

Join Capital's Fund III, which is targeting a total size of €235 million, plans to invest in around 25 early-stage deeptech startups across Europe.

These companies are expected to develop technologies with strategic applications across defence, cybersecurity, space systems and advanced industrial capabilities.

"This investment, backed by the InvestEU fund, could not come at a better time, given the strategic importance attached to the fields of space, security and defence," said Marjut Falkstedt, Chief Executive of the EIF.

"With this backing, we are confident that additional investments will follow, helping Europe build a robust ecosystem for innovative defence solutions."

EU aims to strengthen defence readiness

European Commission officials highlighted that strengthening Europe's defence innovation ecosystem is essential for improving the region's strategic preparedness.

Andrius Kubilius, European Commissioner, said investments in specialist venture capital funds are crucial for supporting defence startups and scaling innovative technologies within Europe.

"Innovation and disruptive technologies are crucial for the EU's defence readiness," Kubilius said.

"By investing in specialist defence venture capital funds like Join Capital, the Commission and the EIF are strengthening the financial ecosystem that nurtures and supports our defence innovators, startups and SMEs."

Backing emerging deeptech innovators

Join Capital has already supported several emerging deeptech and defence technology companies across Europe, including:

• Optics11 (Netherlands) – fibre-optic sensing technology for critical infrastructure monitoring

• Quadsat (Denmark) – satellite antenna testing and calibration systems

• Kreios Space (Spain) – advanced electric propulsion for satellites

• Quantum Optics Jena (Germany) – quantum communication technologies

• 2D Photonics (Italy) – next-generation photonics solutions

These technologies have applications in secure communications, advanced sensing, space systems and cybersecurity, areas considered vital for Europe's strategic resilience.

Dual-use innovation driving economic growth

Jan Borgstädt, Founding Partner at Berlin-based Join Capital, said the fund focuses on startups whose technologies provide strategic advantages across both defence and commercial markets.

"We back founders whose technologies create an asymmetric advantage for their customers in the military and commercial industry," he said.

"Dual-use technologies have a multiplying effect — strengthening security while also driving economic growth."

Defence innovation shaping civilian technologies

Historically, many technologies developed through defence research have later transformed civilian industries.

Innovations such as satellite navigation, radar, semiconductors and the internet originated in military programmes before becoming essential components of modern global infrastructure.

Join Capital's Fund III aims to ensure that the next generation of critical technologies is developed, scaled and anchored within Europe, supporting both security priorities and technological leadership.