What happened
Keen Venture Partners completed the first close of Europe's largest dedicated defense-tech venture capital fund, securing over â¬150 million to back startups across NATO countries. The Amsterdam and London-based firm will deploy capital into 25+ companies from seed to Series B, targeting dual-use technologies and defense-first solutions in cybersecurity, autonomous systems, deterrence, and space applications. The European Investment Fund and Dutch pension fund PME each committed â¬40 million, marking the first EIF backing under the EU's new â¬175 million Defence Investment Programmme. Keen plans to raise up to â¬200 million total, with a second closing expected in coming months.
Why it matters
- Institutional capital is entering European defense tech for the first time at scale, signaling a structural shift away from previous caution toward military and dual-use businesses and enabling faster development cycles.
- The fund addresses a documented financing gap for European defense startups, particularly at Series A, while strengthening continental security autonomy amid evolving geopolitical threats.
- Specialized defense funds now drive 34% of all European defense rounds, nearly doubling their share year-over-year and reshaping the venture ecosystem's maturity and focus.
Key facts
- 1. Keen Venture Partners raised â¬150 million in the first close, with a hard cap of â¬200 million and â¬50 million remaining for a second closing.
- 2. The European Investment Fund and PME each committed â¬40 million, making Keen the first European VC fund to secure EIF backing under the Defence Investment Programme.
- 3. The fund will invest â¬1â10 million per deal across 25+ companies from seed to Series B, with emphasis on Series A rounds.
- 4. Priority investment themes include cybersecurity, autonomous systems, deterrence technologies, and space-based applications.
- 5. European defense-tech VC funding reached $1.5 billion in 2025 alone, with defense now Europe's fastest-growing VC sector projected to expand over 130% year-on-year.
Key Voices
- Giuseppe Lacerenza, partner at Keen Venture Partners, argued that Europe must bridge its capability gap by coupling public procurement with risk-tolerant private investment in dual-use and agile technologies, and stated that institutional investors now recognize security and technology cannot be postponed.
- Keen Venture Partners positioned the fund as operationally deployed and moving toward a second closing, signaling confidence in growing institutional conviction around defense-tech investment.
