European venture capitalists are increasingly prioritizing defense technology in 2025, with many raising dedicated funds or shifting investments from generalist funds to support startups in this sector.

Several emerging funds across Europe, including Superangel in Tallinn, Expeditons Fund in Warsaw, and MD One Ventures in London and Luxembourg, are actively investing in early-stage defense and dual-use startups, focusing on areas like AI, space, unmanned systems, and national security.

Keen Venture Partners in Amsterdam is raising €125 million for a new defense-focused fund targeting sectors such as cyber security and AI.

Madrid-based 201 Ventures, led by ex-CIA officer Eric Slesinger, invests in dual-use technologies and has backed startups like Polar Mist, which develops maritime drones.

London’s Twin Track Ventures, founded by Nicola Sinclair, is raising a £10 million fund to invest in dual-use and deeptech startups, particularly in NATO countries.

MD ONE Ventures, operating in London and Luxembourg, focuses on deeptech and national security startups, with a portfolio that includes significant UK-based investments.

The NATO Innovation Fund, backed by €1 billion from 24 NATO allies and headquartered in Amsterdam, invests broadly in deeptech and defense startups, despite facing organizational challenges and leadership changes, with investments in companies like Isar Aerospace and iCOMAT.

Paris-based Omnes Capital has raised €112 million for deeptech investments, including defense-related startups, despite not branding itself as a defense fund, with investments spanning space tech and AI.

Kyiv’s D3 manages a nearly $30 million fund supporting Ukrainian defense startups focused on military hardware, AI, drone technology, and cybersecurity, with notable investments in drone swarm tech and autonomous landmine detection.

Tallinn’s SmartCap has launched a €100 million fund dedicated to defense and weapons technology, investing in startups and VC funds without restrictions on weapons backing.

Berlin-based Project A has raised €325 million for its fifth fund, focusing on defense investments in autonomous robotics and drone startups like ARX Robotics and Quantum Systems.