This funding initiative aims to strengthen Europe's defence innovation ecosystem amid rising global tensions and the urgent need for technological sovereignty.

This investment comes at a time when Europe is facing increasing military threats, particularly from Russia, and is under pressure to enhance its military capabilities and spending.

The ongoing conflict in Ukraine has intensified calls for increased defence investment across Europe, with the U.S. urging NATO allies to boost their defence spending.

The European Investment Fund (EIF) has made a significant move by investing €40 million in Keen Venture Partners' European Defence and Security Tech Fund, marking the first EIF-backed fund in Europe dedicated solely to defence, security, and space technology.

Keen Venture Partners is led by industry veterans Ben Verwaayen, former CEO of BT and Alcatel-Lucent, and Alexander Ribbink, former COO of TomTom, bringing a wealth of experience in telecommunications and technology.

Historically focused on smaller European companies, the EIF has shifted its stance on the defence industry following Russia's invasion of Ukraine, reflecting a broader trend towards national security and technological sovereignty.

This fund aims to support 20 to 25 companies from seed to Series B funding stages, with a target of raising a total of €125 million and plans to reach its first close by the third quarter of 2025.

The fund boasts a robust advisory board that includes prominent figures such as Jaap de Hoop Scheffer, former NATO Secretary General, and Kajsa Ollongren, former Dutch Minister of Defence.

In response to these challenges, the European Investment Bank (EIB) has revised its lending rules to include companies producing military equipment, excluding lethal weapons, and plans to double its investments in security and defence projects.

The global defence tech sector has seen a surge in investment activity in 2025, with notable companies like Quantum Systems and Tekever achieving significant funding and valuations.

Keen Venture Partners is actively seeking additional funding from institutional investors and high-net-worth individuals to further bolster its influence in the defence sector.

The fund will also focus on dual-use technologies that can serve both defence and civilian purposes, aligning with the strategies of the European Defence Fund and NATO.