Most Active VC Funds Investing in European Defense Tech Startups

Venture capital investment in Europe's defense sector is growing

Venture capital investment in Europe's defense sector is growing, with projections pointing to a record $1 billion in funding.

Since 2018, VC funding for defense-related tech has reached $3 billion, outpacing other investments in NATO countries and allies by 25%. This rise is driven by geopolitical tensions and the ongoing war in Ukraine, with European startups, especially from Germany, the UK, and France, attracting more capital.

However, most VCs are limited by agreements that restrict direct investment in weapons systems, allowing only dual-use technologies—those with both civilian and military applications.

Top European Defense Tech VC Funds

Adara Ventures

• HQ: Madrid, Spain

• Ticket size: N/A

• Notable Investments: CounterCraft, Constella Intelligence

• Focus: Early-stage deeptech investor in cybersecurity, AI, digital infrastructure, and dual-use technologies.

Airstreet Capital

• HQ: London, UK

• Ticket size: $500K-$5M

• Notable Investments: Lambda Automata, Modern Intelligence, Delian AI

• Focus: AI-first companies with transformative impact on defense and security.

Allied VC

• HQ: London, UK

• Ticket size: N/A

• Notable Investments: Hadean

• Focus: Dual-use deeptech, investing in IP-rich technologies in the national security sector.

Angel One Fund

• HQ: Lviv, Ukraine

• Ticket size: $50K-$200K

• Notable Investments: Swarmer

• Focus: Ukrainian startups across all tech sectors, supporting defense innovation amid conflict.