Europe faces a widening defence tech gap, with the US outpacing it 10-to-1 in venture funding for defence startups (per 2025 Dealroom data), leaving the continent struggling to scale homegrown innovators in drones, quantum-secure comms, and dual-use AI.
Europe is increasing investment in defence and advanced technologies to strengthen its industrial and security capabilities. To support this effort, the European Investment Fund (EIF) has announced a major new investment into a venture capital fund focused on deep tech and defence innovation.
The European Investment Fund, part of the European Investment Bank (EIB) Group, has committed €50 million to Join Capital Fund III. The investment was announced during the EIB Group Forum in Luxembourg.
The funding comes through the InvestEU Defence Equity Facility, a programme co-funded by the European Commission that supports venture capital funds investing in defence-related technologies.
Supporting Europe’s defence and technology ecosystem
The €50 million commitment is the largest defence-related investment by the EIF to date. The goal is to help attract more private capital into areas such as defence, security, dual-use technologies, and space innovation.
Join Capital’s Fund III aims to raise €235 million in total. The fund plans to invest in around 25 early-stage startups across Europe that are building advanced technologies with applications in both military and civilian sectors.
Marjut Falkstedt, Chief Executive of the EIF, said, “This investment, backed by the InvestEU fund, could not come at a better time, given the strategic importance attached to the fields of space, security and defence. ”
She added, “With this backing, we are confident that additional investments will follow, helping Europe build a stronger ecosystem for innovative defence solutions,” she said.
“Innovation and disruptive technologies are crucial for the EU’s defence readiness. By investing in specialist defence Venture capital funds, like Join capital, the Commission and the EIF are strengthening the financial ecosystem that nurtures and supports our defence innovators, startups and SMEs to grow and scale up in Europe,” said Commissioner Andrius Kubilius.
Join Capital’s investment focus
Berlin-based Join Capital invests in early-stage companies building deep tech and defence-related technologies. Some of its previous investments include startups such as Optics11 (Netherlands), Quadsat (Denmark), Kreios Space (Spain), Quantum Optics Jena (Germany), and 2D Photonics (Italy).
These companies are developing technologies ranging from fibre-optic sensing systems for critical infrastructure to quantum-secure communication tools, advanced electronic systems, and cybersecurity solutions.
“We back founders whose technologies create an asymmetric advantage for their customers in the military and commercial industry. Investments in such dual-use technologies have a doubling effect; they create both deterrence and economic growth for Europe,” said Jan Borgstädt, a Founding Partner at Berlin-based Join Capital.
