
EU launches €40 million investment in new defense fund to boost military capabilities
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- Anusha Zahid
- May 23, 2025

BRUSSELS: The European Union’s investment vehicle is investing €40 million ($45 million) in a dedicated European defense fund, marking a first as the bloc seeks to improve its military capabilities.
The European Investment Fund, which provides access to financing for small and medium-sized businesses, will contribute to a fund being raised by Keen Ventures Partners that is targeting €125 million, it said in a statement.
Europe is boosting military spending in the face of rising threats from Russia’s war in Ukraine and uncertainty over whether Washington will continue to back Kyiv. Following a call between US President Donald Trump and Russian President Vladimir Putin this week, many European leaders believe the US will seek to distance itself from the conflict.
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The European Investment Bank, the EU’s long-term lending institution which includes the EIF, recently expanded its eligibility criteria for defense investments. The group expects to at least double its investment for security and defense projects this year, reported Bloomberg.
Keen is seeking a first close in the third quarter for the fund, which will support between 20 and 25 startups from seed phase to Series B, according to the statement.
The European defense tech industry is currently dominated by large companies, Alexander Ribbink, partner at Keen Capital Ventures said in an interview. Investing in ‘tech entrepreneurs is an important step to ensure Europe has a much more mature and developed defense ecosystem,” he added.
