The Lakestar European defence fund could soon become a new force in the region’s growing security-tech sector, as reports emerge that Klaus Hommels’ venture firm is seeking to raise up to $300M for a dedicated vehicle.
As geopolitical tensions rise and technology’s role in defence continues to grow, investors are actively scouting opportunities in dual-use and national security-focused startups. A potential new fund from Lakestar, the backer of unicorns like Spotify, Revolut and Glovo, would represent a major institutional bet on the future of European defence innovation. If successful, it would be one of the largest defence-focused VC funds in Europe to date, signalling a new era for the continent’s strategic autonomy.
An urgent investment case shaped by global conflict
Since Russia’s full-scale invasion of Ukraine in 2022, investor sentiment around defence startups has shifted sharply. Once a niche sector, European defence tech attracted a record $5.2B in funding in 2024, according to Dealroom. From battlefield AI to cybersecurity and satellite surveillance, the sector has emerged as a key pillar of European tech’s next phase.
Klaus Hommels has been pitching investors since late 2024 to raise between $250M and $300M for a defence-focused fund. However, a source close to Lakestar contradicted that timeline, stating fundraising efforts began only “in recent weeks.” Despite the conflicting accounts, the move aligns with Hommels’ public advocacy for European security innovation. In a 2023 interview, he revealed plans to invest over €100M of his capital into the sector. This individual commitment, rare among European venture leaders, has helped rally support from both private and public backers.
The sector’s momentum is also driven by new EU policies and funding programs, such as the European Defence Fund (EDF), which has allocated €8B between 2021 and 2027 to boost research and innovation in defence technologies.
Lakestar founder embedded in the heart of European defence innovation
Swiss-born Klaus Hommels founded Lakestar in 2012 after building a reputation as one of Europe’s earliest and most successful angel investors. His track record includes early bets on Skype, Facebook, and Xing. Hommels has also been a vocal proponent of strengthening Europe’s sovereign tech capabilities, especially in areas vulnerable to foreign dependency.
In addition to leading Lakestar, Hommels currently serves as chair of the NATO Innovation Fund (NIF), which recently saw the departure of its third founding partner within a year, as first reported by Sifted. He is also an angel investor in German AI defence startup Helsing, signalling his long-standing interest in next-generation security platforms. Hommels’ dual role as investor and policy influencer gives Lakestar a unique vantage point in bridging the gap between venture capital and European defence policy.
Lakestar’s broader team includes partners with backgrounds in deeptech, cyber, and government relations, positioning the firm to source deals at the intersection of technology and security policy.
Institutional momentum and deeptech ambitions
If the Lakestar European defence fund reaches its $300M goal, it would be the firm’s second major fundraise in two years. In 2024, Lakestar closed a $600M fund targeting investments in deeptech, AI, healthcare, digitalisation, and fintech. The new vehicle would place an exclusive focus on defence-related technologies, including startups operating at the intersection of military and civilian applications.
While no formal announcement has been made, the fund would likely seek participation from a mix of sovereign wealth funds, institutional LPs, and family offices aligned with NATO-aligned national interests. The European Investment Fund (EIF), the region’s largest LP, recently made its first allocation to a defence fund, indicating institutional capital is warming to the sector. Other potential LPs include national development banks and strategic corporate partners from the aerospace and cybersecurity industries, reflecting a growing coalition behind European defence innovation.
The fund is expected to invest in 20–30 companies, focusing on early and growth-stage startups across areas such as secure communications, autonomous systems, quantum sensing, and next-generation materials.
Lakestar is on a mission to defend Europe’s digital frontier
Lakestar’s entry into defence is not purely financial. For Hommels and the firm’s leadership, the move reflects a belief that Europe must own its strategic technologies. This includes core capabilities in semiconductors, AI, quantum sensing, secure communications, and autonomous systems- areas where startups increasingly blur the line between civilian and military use.
Though competitors in the space include firms like Redstone, OTB Ventures, and NGP Capital, Lakestar is positioning itself as a fund that combines elite venture experience with firm policy and NATO ties. This hybrid positioning could allow it to serve as a capital provider and a strategic ally to Europe’s defence ecosystem. Lakestar also aims to provide portfolio companies access to defence procurement networks, regulatory guidance, and cross-border scaling support—advantages that could accelerate the commercialisation of critical technologies.
As the continent faces escalating geopolitical risk and rising demand for technological sovereignty, the Lakestar European defence fund may emerge as a cornerstone of Europe’s long-term security strategy—if fundraising ambitions are realised. With the first close anticipated later this year, all eyes will be on Lakestar to see if it can deliver the capital—and the strategic firepower—Europe’s defence innovators need.
