The European Investment Fund has committed €50 million to Join Capital’s third venture capital fund to back early-stage European technology companies working in defence, security and space.
The European Investment Fund (EIF), which is part of the European Investment Bank Group, said said in a statement at the EIB Group Forum in Luxembourg on Thursday that the pledge was its largest so far for defence-related investment.
Join Capital’s Fund III is targeting €235 million and plans to invest in 25 early-stage “deeptech” start-ups across Europe.
The EIF said the commitment is supported by the InvestEU Defence Equity Facility, which backs venture capital funds investing in defence technology.
EU Commissioner Andrius Kubilius stated innovation and “disruptive technologies” were “crucial” for the EU’s defence readiness, adding that investing in specialist defence venture capital funds would support defence innovators, start-ups and small and medium-sized businesses to grow in Europe.
Fund focus on “dual-use” technologies
The fund will invest in companies developing “dual-use” technologies — tools that can have both civilian and military applications — as well as in defence, security and space, the statement said.
EIF Chief Executive Marjut Falkstedt said the EIF’s backing could act as a “seal of approval” to other investors in the aerospace, security and defence sector.
Jan Borgstädt, a founding partner at Berlin-based Join Capital, said the firm backs founders whose technologies can serve both military and commercial customers.
The InvestEU Defence Equity Facility is a €175 million initiative co-financed by the European Defence Fund and the EIF, and is expected to unlock more than €500 million in support for European companies.
