Backing funds managed by Lakestar and Expeditions, the initiative seeks to help founders bring advanced defence technologies to market faster as Europe strengthens its security capabilities.
BAE Systems is committing €50 million to VC funds focused on backing European defencetech startups. The investments will expand on the Company’s longstanding approach to investing in future technology and forms the second stage of its recently announced Launchpad programme, which aims to accelerate disruptive innovation.
Launchpad aims to address the challenge of moving defence technologies beyond prototype development by funding early-stage ventures or spinning them out as independent startups. This aligns with key priorities across Europe and the UK.
The programme is designed to leverage BAE Systems’ position as a technology innovator to support national priorities, including rapid technology incubation, sovereign capability and economic growth.
It also provides startups with access to customers across a broader range of sectors, like energy and advanced manufacturing. €25 million will be invested in two funds led by Expeditions and Lakestar, who are both working to help shape the future of European defence innovation by backing founders and technologies that aim to deliver next-generation capabilities for allies across the continent.
According to Dave Ewing, Head of Technology Commercialisation at BAE Systems, the company has always valued the capabilities and ingenuity that early-stage founders bring to the table.
“Building on our long-standing investment in innovation, we recently set up Launchpad as a win-win, aiming to spin out some of our own defence technologies to commercial markets while also backing start-ups who can bring something new to defence. This latest step means we’re full steam ahead on making that a reality.”
Klaus Hommels, Founder and Chairman of Lakestar, said:
“Europe is at a pivotal moment in redefining its security and technological sovereignty, and supporting the next generation of defence-tech founders will be critical to that effort.
BAE Systems’ investment is significant as it brings together capital, deep sector expertise and access to markets to accelerate the development and deployment of the capabilities Europe needs to remain secure in an increasingly complex world.”
According to Dr Mikolaj Firlej, co-founder and General Partner of Expeditions:
“European defence-tech can drive the most transformative shift for our continent in a generation and Expeditions has been investing with this conviction for years.
Our security can no longer be assumed; it has to be built. Its architects will be the founders deploying innovative products at scale, in weeks and months rather than years, drawing on lessons from the frontline.”