Key Takeaways
- • Expeditions, a Warsaw-based defense-tech venture capital firm backed by BAE Systems and the NATO Innovation Fund, closed Fund II at €197 million ($225 million), exceeding its original €150 million target by 31%.
- • BAE Systems committed €25 million to the fund as a cornerstone investor, part of a broader €50 million BAE commitment to European defense-focused venture capital vehicles.
- • The fund will deploy capital across up to 40 early-stage companies developing dual-use technologies including cybersecurity, AI, quantum, autonomy, communications, and space systems with immediate operational relevance to European defense capability gaps.
- • Expeditions' portfolio track record includes backing nearly 30% of Europe's 30 most well-funded defense startups, with Fund I exits including Alpine Eagle, Comand AI, Nu Quantum, and Labrys.
- • The LP base reflects institutional confidence from European tech money, including the Polish Development Fund, European Investment Fund, and early-stage executives from Skype, Wise, Bolt, and Snowflake, reflecting a strategic focus on European sovereignty in defense technology.
Summary
Expeditions, founded in 2021 by Dr Mikolaj Firlej and Stanislaw Kastory, has successfully closed its second fund at €197 million, marking a significant vote of confidence in European defense technology investment. The oversubscribed raise surpassed the firm's €150 million target, driven largely by BAE Systems' €25 million anchor investment alongside continued backing from the NATO Innovation Fund. This fundraise represents part of BAE's broader strategy to deploy €50 million across European venture capital funds focused on defense-tech innovation.
The fund's investment thesis centers on European sovereignty—developing military technologies that the continent can build and control domestically rather than relying on imports. This strategic positioning directly addresses capability gaps exposed by geopolitical events in Eastern Europe. Expeditions will deploy the €197 million across up to 40 early-stage companies operating at the intersection of security and deep technology, spanning cybersecurity, artificial intelligence, quantum computing, autonomous systems, communications infrastructure, and space technologies.
Expeditions' market position is reinforced by its existing portfolio performance. The firm claims to have backed approximately 30% of Europe's 30 most well-funded defense startups through Fund I, demonstrating strong deal sourcing and selection capabilities. Previous Fund I investments have included Alpine Eagle, Comand AI, Nu Quantum, and Labrys, establishing a track record of supporting companies addressing critical defense infrastructure needs.
The LP composition underscores institutional backing from both government-aligned and private market participants. Beyond BAE Systems and the NATO Innovation Fund, Fund II's backers include Poland's state-backed Polish Development Fund, the European Investment Fund, and high-net-worth technology entrepreneurs from scaling platforms including Skype, Wise, Bolt, and Snowflake. This institutional depth reflects broader recognition of defense-tech opportunity among European limited partners and validates the risk-adjusted return thesis underlying sovereign European defense capability development.
The fund's investment thesis centers on European sovereignty—developing military technologies that the continent can build and control domestically rather than relying on imports. This strategic positioning directly addresses capability gaps exposed by geopolitical events in Eastern Europe. Expeditions will deploy the €197 million across up to 40 early-stage companies operating at the intersection of security and deep technology, spanning cybersecurity, artificial intelligence, quantum computing, autonomous systems, communications infrastructure, and space technologies.
Expeditions' market position is reinforced by its existing portfolio performance. The firm claims to have backed approximately 30% of Europe's 30 most well-funded defense startups through Fund I, demonstrating strong deal sourcing and selection capabilities. Previous Fund I investments have included Alpine Eagle, Comand AI, Nu Quantum, and Labrys, establishing a track record of supporting companies addressing critical defense infrastructure needs.
The LP composition underscores institutional backing from both government-aligned and private market participants. Beyond BAE Systems and the NATO Innovation Fund, Fund II's backers include Poland's state-backed Polish Development Fund, the European Investment Fund, and high-net-worth technology entrepreneurs from scaling platforms including Skype, Wise, Bolt, and Snowflake. This institutional depth reflects broader recognition of defense-tech opportunity among European limited partners and validates the risk-adjusted return thesis underlying sovereign European defense capability development.
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