In the wake of escalating geopolitical tensions, VC funding in defence technology has surged, marking a major shift in investment trends. The European Investment Fund (EIF) has recently made its inaugural foray into defence tech by committing €40 million to Keen Ventures Partners’ European Defence and Security Tech Fund.
The EIF’s €40 million investment in Keen’s European Defence and Security Tech Fund marks its first under the Defence Equity Facility and the InvestEU Space mandate. This fund aims to raise €125 million to support early-stage companies developing technologies in cyber defence, AI, robotics, autonomous systems, and space technologies. The fund’s pan-European focus includes investments in the UK, Turkey, and Norway.
Keen has assembled a 13-person advisory board for the new fund, featuring notable figures such as Jaap de Hoop Scheffer, former Secretary General of NATO, and Kajsa Ollongren, former Dutch Minister of Defence and Deputy Prime Minister. This board brings together a wealth of experience from military, political, and defence industry backgrounds, reinforcing the fund’s strategic vision.
Keen Ventures: Pioneering defence innovation
Founded in 2014, Keen Venture Partners is a venture capital firm based in Amsterdam and London. It focuses on early-stage investments in European technology companies. The firm is known for its radically human approach, emphasising strong partnerships with exceptional founders to support their growth journey. Keen typically invests in Series A and B rounds, with ticket sizes ranging from €5 million to €10 million.
The firm’s leadership includes General Partners Ben Verwaayen, former CEO of BT and Alcatel-Lucent, and Alexander Ribbink, former COO of TomTom. Their combined experience in telecommunications and technology provides a robust foundation for Keen’s investment strategies.
Global surge in defence tech investments
The global defence tech landscape has witnessed significant funding rounds in 2025, reflecting the sector’s growing importance:
- Quantum Systems: The Munich-based AI-powered drone company raised €160 million to enhance its aerial intelligence systems and expand globally. Investors include Balderton Capital, Hensoldt, and Airbus Defence and Space.
- Tekever: This AI defence unicorn secured a £1 billion+ valuation and launched a £400 million UK expansion to develop next-generation AI-driven defence ecosystems. Ventura Capital led the funding round, which included Baillie Gifford and the NATO Innovation Fund.
- ARX Robotics: Specialising in scalable robotic systems, the Munich-based company closed a €31 million Series A funding round to fuel next-gen autonomous defence solutions. Investors include HV Capital and the NATO Innovation Fund.
- Arondite: The London-based AI defence tech startup raised $12 million to connect autonomous systems at scale, enhancing safety and operational control. The seed funding round was led by Index Ventures.
- Shield AI: The California-based defence tech company developing AI pilots for aircraft raised $240 million, bringing its valuation to $5.3 billion. Investors include L3Harris, Hanwha Aerospace, and Andreessen Horowitz.
Our thoughts
The EIF’s investment in Keen Ventures’ defence-focused fund signifies a pivotal moment in European defence tech investment. As Europe confronts unprecedented security challenges, the convergence of venture capital and defence innovation is poised to play a critical role in shaping the continent’s strategic future.
With its experienced leadership and strategic vision, Keen Ventures stands at the forefront of this transformation, driving technological advancements that will bolster Europe’s defence capabilities for years to come.
Marjut Falkstedt, Chief Executive of the EIF, stated, “Our investment in the Keen European Defence and Security Tech Fund underscores our commitment to strengthening the European security landscape. By supporting innovative companies in this critical sector, we are fostering technological advancements and enhancing Europe’s overall security and resilience.”
Alexander Ribbink and Giuseppe Lacerenza, Partners at Keen Venture Partners, said: “The team at Keen has a long commitment to and investments in defence and defence technology. The opportunity to add the power of tech entrepreneurs with the full support of venture capital to the European defence ecosystem is huge. A stronger and safer Europe needs the resourcefulness and grit that only entrepreneurs can bring. We are proud to be at the forefront of this trend, and to be strongly supported by the EIF.”
