European Investment Fund invests €40M in Keen Venture Partners’ defence tech fund

Europe faces an urgent need to strengthen its defence capabilities. The continent is under direct threat from the East, with Russia’s war in Ukraine continuing unabated. Europe’s key NATO ally, the United States, is demanding that it carries a fairer share of the burden of its own defence. Europe has underinvested in defence across all key areas and now needs to remedy this. Increased investment across the entire defence ecosystem is essential. Startups and scale-ups, led by entrepreneurs and backed by venture capital, can play an important role in accelerating innovation and delivering new technologies to the front lines more quickly.

Increased defence spending could significantly boost Europe’s economic growth. According to a report by the Kiel Institute which shows that gross domestic product (GDP) could increase by 0.9 percent to 1.5 percent per year if governments raised annual defence spending from the NATO target of 2 percent to 3.5 percent of GDP and shifted from buying weapons designed and made in the USA to more European purchases and innovations.

Need for defence tech entrepreneurs greater than ever

The need for a stronger and more self-sufficient European defence industry has never been greater, making the addition of defence tech entrepreneurship and venture capital - and therefore not only public funds - essential. Entrepreneurs bring innovation and cost-efficiency, particularly in dual-use solutions, and thus contribute to a deeper defence tech ecosystem. To build a strong defence tech ecosystem, venture capital is crucial for rapidly scaling these solutions and driving long-term impact.

Keen’s dedicated defence tech fund is currently in the fundraising phase with a target to raise €125 million. The investment of the European Investment Fund represents a significant contribution to becoming one of the major funds in Europe, from which around 20 to 25 startups from seed phase to Series B will be supported.

“The mission to make Europe stronger and safer by empowering defence tech entrepreneurs receives a major boost with this EIF investment in our fund”, said Alexander Ribbink, Keen Venture Partners.

Giuseppe Lacerenza, partner at Keen adds: “Strengthening Europe’s defence and security through private capital, combined with the ingenuity and perseverance of entrepreneurs, is only just beginning. We’re proud to see the EIF take a catalytic role in mobilising private investments for this vital cause.”

Expertise and network for scaling startups

Keen is characterized by its deep expertise and network in the defence tech industry. The fund tracks more than 800 European defence tech companies, which is more than any other European fund. Keen has put together a top-level European advisory board with proven experience in defence tech investments, consisting of renowned advisors with a background in the military, defence tech business and policy. Within the fund, there is room for larger investors with experience in the defence tech industry.

Keen Venture Partners aims to play a structural role in building the European defence tech ecosystem. The Keen fund focuses on ‘dual use’ defence technology in European NATO countries. Dual use technology can be used for other purposes in addition to defence tech, such as disaster control or environmental monitoring. Keen’s portfolio includes Eclectic IQ, Rescale, Perciv AI and Avalor AI.

‍