Earlybird and AVP Launch a 500-Million-Euro Fund for European Defense and Dual-Use Technologies

The venture capital firms Earlybird and AVP (AXA Venture Partners) are joining forces to launch E2D, a new growth fund for European defense and dual-use technologies. The fund’s target size is 500 million euros. This marks one of the largest Franco-German investment initiatives to date in the European defense technology sector.

The fund is launching at a time when Europe is redefining its security priorities. France has announced defense spending of 76 billion euros, Germany is investing 152 billion euros, and the European Union has launched the largest security investment push in decades with its 800-billion-euro program for European defense capabilities.

Capital for Europe’s Next Generation of Technology

E2D focuses on growth companies in the defense and dual-use technology sectors. Investments will span all strategic domains, ranging from space, aviation, and maritime applications to land-based and underwater systems.

Investments in approximately 20 companies are planned. The average investment is expected to be around 25 million euros. The goal is to support European technology companies during a critical growth phase while simultaneously retaining more capital, talent, and intellectual property within Europe. Many promising DefenseTech and DeepTech companies have so far had to rely on U.S. investors as soon as larger growth funding rounds became necessary.

German-French Alliance for Europe’s Sovereignty

While Earlybird brings its long-standing expertise in the European DeepTech sector, AVP contributes its international growth platform and transatlantic investor perspective.

The fund is managed by a specialized team focused exclusively on defense and dual-use technologies. E2D is also supported by an international strategic advisory board comprising representatives from the military, NATO structures, industry, and European defense companies. According to the founders, E2D is not only intended to generate returns but also to specifically help close European capability gaps in the areas of security, defense, and strategic technologies.

Europe’s DefenseTech Scene Gains Momentum

The launch of the fund underscores just how much the perception of DefenseTech in Europe has changed. While investments in defense technologies were still excluded by many institutional investors just a few years ago, they are now among the fastest-growing segments of the European venture capital market.

E2D now adds another building block to support European technology companies on their journey from innovation to industrial scaling.