Keen Venture Partners launches 150 million euro fund for European defense tech

Keen Venture Partners has announced the first close of its new European Defense and Security Tech Fund. The fund has already raised over 150 million euros and is considered the largest specialized venture capital fund for defence and security technology in Europe to date. It invests in start-ups and scale-ups from European NATO countries that develop security-related technologies.

Strategic importance for Europe's defense capability

The need for technological upgrades in Europe has grown significantly. NATO Secretary General Mark Rutte emphasized that Europe must strengthen its defence capabilities in order to ensure strategic autonomy. The war in Ukraine had shown how strongly modern conflicts are shaped by AI, autonomous systems and software-based solutions.

Despite the high level of innovation in European defense tech start-ups, only a quarter of the defense budget remains within the EU. Innovative companies therefore lack both capital and access to their first customers.

Broad base of private and institutional investors

The first close was made possible by several well-known investors who are actively supporting the expansion of an independent European defense tech landscape. The European Investment Fund (EIF) and the pension fund PME each pledged 40 million euros. Keen is the first VC fund to receive funding under the new EIF defense program.

Other investors are the Dutch research institution TNO and ABN AMRO, whose participation underlines the connection to the financial ecosystem.

Germany as a focus market

Keen sees Germany as a key market for defense technology. The country has capital, research expertise, industrial capacities and a growing defense tech ecosystem. The company wants to invest more in Germany, attract local talent and intensify its exchange with politicians, the German armed forces and ministries.

From start-up to series B

The fund aims to invest in more than 25 companies and focuses on defense tech and dual-use technologies. Relevant areas include:

• cyber security
• autonomous systems
• orbital defense technologies
• deterrence technologies

The investment sums are between 1 and 10 million euros, with a focus on Series A. Keen expects close cooperation and co-investments with other European VC firms in the future.

Previous investments in the defense and security technology sector include EclecticIQ, Intelic (formerly Avalor AI) and Perciv AI.

Building a European defense tech growth platform

Keen is also strengthening its team and hiring additional investment experts to meet the expected demand. The fund continues to focus on a thesis-driven approach and is supported by an advisory board that brings together expertise from the military, industry and politics.