A few days ago, the European Commission and the European Investment Fund (EIF) announced a €40 million investment deal with Keen’s European Defence and Security Tech Fund — a pioneering effort to enhance the availability of capital for defence-focused ventures in Europe.

With a focus on early-stage companies within the defence and security technology sector, Keen aims to support firms that are developing solutions in areas such as information superiority, cyber defence, robotics, AI, autonomous systems and space technologies — including secure satellite communications, satellite image analysis, and protection of space assets.

This is the EIF’s first investment in a dedicated European defence fund, made in the context of the Defence Equity Facility launched in January 2024. The fund also received backing from the InvestEU Space mandate and builds upon EIF’s previous investments in generalist venture capital funds with a partial focus on defence.

The Defence Equity Facility is a €175 million initiative, receiving €100 million from the European Defence Fund and an additional €75 million from the European Investment Fund. Implemented under the InvestEU programme and as part of the EU Defence Innovation Scheme (EUDIS), the initiative aims to stimulate the development of an ecosystem of private funds investing in defence innovation. 

It expands EIF’s investment capacity to support private equity and venture capital funds with investment strategies covering technologies relevant to defence until 2027. 

This Defence Equity Facility is expected to attract further private investment into the funds it supports, thereby mobilising approximately €500 million in total to support European companies.

Also read: Ministry of Defence | Significant Success of the Cypriot Defence Ecosystem in the European Defence Fund Work Programme EDF2024

The European Defence Fund (EDF) is the Commission’s instrument to support research and development in defence. With its €7.3 billion budget between 2021-2027 period, the EDF supports companies across Member States in developing competitive and collaborative defence projects that will deliver innovative and interoperable defence technologies and equipment. As part of the EDF, the EU Defence Innovation Scheme (EUDIS) encompasses funding and support measures tailored to support SMEs, including start-ups. 

EUDIS supports innovators through grants (SMEs calls, spin-in calls, technological challenges, disruptive technology calls), and other measures such as business coaching, hackathons, business accelerator, and matchmaking. It also supports, via the Defence Equity Facility (implemented by the European Investment Fund), the development of an ecosystem of private funds investing in innovative defence SMEs and small mid-caps. 

The InvestEU programme provides the European Union with vital long-term funding by leveraging substantial private and public investment in support of a sustainable economy. It comprises three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. 

Also read: EIB | Measures to Finance European Security and Defence and Critical Raw Materials

The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thereby mobilising at least €372 billion in additional investment. The Defence Equity Facility is funded by the European Defence Fund and implemented under the InvestEU programme. 

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its core mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by improving their access to finance. 

The EIF designs and implements venture and growth capital instruments, guarantees, and microfinance tools specifically targeting this market segment. In this role, the EIF promotes EU objectives in sustainability, innovation, research and development, entrepreneurship, growth, and employment. It also acts as an implementing body of the InvestEU Fund and the Defence Equity Facility.

Keen Venture Partners is a radically human venture capital firm based in Amsterdam and London. Keen backs exceptional teams and fast-growing European tech companies from seed to Series B. Keen has built strong expertise in defence and deep tech, supported by an advisory board comprising European military leaders, industry veterans, and policymakers. 

The firm invests through a thesis-driven approach, formulating investment ideas based on fundamental trends in specific technological fields. When getting to know founders, Keen shares its network, experience, and capabilities even before investing. Its portfolio includes over 30 start-ups and scale-ups across Europe.

Also read: European Defence Fund | Announcement of the 2025 EDF Work Programme