The investment is the EIF’s largest commitment to date in the defence sector and is supported by the InvestEU Defence Equity Facility, co-funded by the European Commission. The facility aims to strengthen Europe’s defence technological and industrial base by supporting specialised venture capital funds.
Join Capital’s Fund III targets €235 million and plans to invest in 25 early-stage deeptech startups across Europe. These companies will develop technologies with critical capabilities in defence, dual-use, security and space.
Marjut Falkstedt, Chief Executive of the EIF, highlighted the timing of the investment and its strategic importance. She 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.”
Falkstedt also underlined the potential catalytic effect of the commitment. She added: “With this backing, we are confident that additional investments will follow, helping Europe in building a robust ecosystem for innovative defence solutions.”
European Commissioner Andrius Kubilius emphasised the role of innovation in strengthening the EU’s defence capabilities. He said: “Innovation and disruptive technologies are crucial for 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.”
Join Capital has already supported several early-stage defence and deeptech companies across Europe, including Optics11 in the Netherlands, Quadsat in Denmark, Kreios Space in Spain, Quantum Optics Jena in Germany and 2D Photonics in Italy. Their technologies range from fibre-optic sensing for critical infrastructure and quantum-secure communications to advanced electronic payloads and cybersecurity solutions.
Jan Borgstädt, Founding Partner at Berlin-based Join Capital, said the fund focuses on technologies that benefit both defence and commercial markets. He stated: “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.”
Defence research and development has historically played a major role in shaping civilian technologies. Innovations such as satellite navigation, radar systems, semiconductors and the internet originated in military programmes and now underpin global logistics, communications and productivity.
Join Capital Fund III aims to ensure that the next generation of critical technologies is developed, scaled and anchored in Europe. Through this approach, the fund seeks to strengthen Europe’s resilience, strategic autonomy and industrial capabilities in key technology sectors.
Source: European Investment Bank (press release).
