Key Takeaways
- • Earlybird (Berlin-based VC) and AVP (Paris-based investor, formerly AXA Venture Partners) are jointly raising a €500 million defence-focused fund, marking a rare joint venture in the European VC ecosystem.
- • The fund targets defence, security, and resilience technologies, positioning itself within a broader European trend of increased capital deployment toward defence sector investment.
- • This initiative reflects growing institutional demand for dedicated defence investment vehicles in Europe, alongside competing efforts from other players including Deutsche Telekom-backed DTCP's €500 million "Project Liberty" fund.
- • The partnership represents a strategic cross-border collaboration between established European venture capital firms to capture emerging opportunities in the defence technology sector.
Summary
Earlybird and AVP are partnering to launch a €500 million defence-focused venture capital fund, according to sources familiar with the firms. The Berlin-based venture capital firm Earlybird and the Paris-based investor AVP (formerly known as AXA Venture Partners) are combining their expertise and capital to target defence, security, and resilience technologies across Europe. This collaboration represents an uncommon joint venture structure within the European VC ecosystem, where major firms typically operate independent fundraising efforts.
The fund launch occurs within a broader context of increased European institutional focus on defence sector investment. European investors and governments are actively seeking to build domestic capabilities in defence technology, driven by geopolitical considerations and strategic autonomy objectives. This capital mobilization reflects recognition among institutional investors that defence and security technologies represent a significant opportunity set.
The €500 million fund size places Earlybird and AVP's initiative among the larger dedicated defence-focused investment vehicles in Europe. Comparable efforts include Deutsche Telekom-backed DTCP's "Project Liberty" fund, also targeting €500 million for European defence, security, and resilience technologies. Additionally, France's public investment bank Bpifrance has launched a €450 million defence-focused fund, while French authorities have signaled broader ambitions to raise €5 billion in new capital for the defence sector. These parallel initiatives underline sustained institutional appetite for dedicated capital deployment in defence technology.
Earlybird has previously demonstrated capability in large-scale fundraising, having raised a €360 million early-stage fund, extending its hard cap during the raise to accommodate additional investor demand. The firm's partnership with AVP leverages both organizations' established networks and operational experience within European venture capital markets. The collaboration signals confidence among major European VCs that defence technology investment warrants dedicated, substantial capital vehicles.
The fund launch occurs within a broader context of increased European institutional focus on defence sector investment. European investors and governments are actively seeking to build domestic capabilities in defence technology, driven by geopolitical considerations and strategic autonomy objectives. This capital mobilization reflects recognition among institutional investors that defence and security technologies represent a significant opportunity set.
The €500 million fund size places Earlybird and AVP's initiative among the larger dedicated defence-focused investment vehicles in Europe. Comparable efforts include Deutsche Telekom-backed DTCP's "Project Liberty" fund, also targeting €500 million for European defence, security, and resilience technologies. Additionally, France's public investment bank Bpifrance has launched a €450 million defence-focused fund, while French authorities have signaled broader ambitions to raise €5 billion in new capital for the defence sector. These parallel initiatives underline sustained institutional appetite for dedicated capital deployment in defence technology.
Earlybird has previously demonstrated capability in large-scale fundraising, having raised a €360 million early-stage fund, extending its hard cap during the raise to accommodate additional investor demand. The firm's partnership with AVP leverages both organizations' established networks and operational experience within European venture capital markets. The collaboration signals confidence among major European VCs that defence technology investment warrants dedicated, substantial capital vehicles.
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