Earlybird
and AVP have announced the launch of E2D, a €500 million growth-stage fund
focused on defence and dual-use technologies. The fund will invest in European
defence and deeptech companies and represents a collaboration between the two
firms. Its limited partners include major financial institutions and
corporates, with a first close scheduled for June 30.
The
launch comes amid a significant increase in defence spending across Europe.
France has committed €76 billion to defence investments, Germany €152 billion,
while the European Union has outlined an €800 billion defence plan. Against
this backdrop, E2D seeks to address a longstanding funding gap for European
defence and dual-use companies, which have often relied on overseas investors
to secure growth capital.
AVP
and Earlybird bring complementary capabilities to the partnership, combining
AVP’s growth-stage and transatlantic investment experience with Earlybird’s
long-standing track record in European deeptech investing. The fund’s team
includes investors who have been active in the defence and dual-use technology
sector for more than a decade.
European
defence is at a historic turning point, requiring a new generation of
technology champions to safeguard sovereignty. By partnering with Earlybird in
this Franco-German alliance, we will be able to move fast and invest in the
companies that will have the greatest potential impact.
The best European
defence companies need investors who bring real sector conviction and pan-European
reach; that’s exactly what this partnership delivers,
said Benoit Fosseprez,
General Partner at AVP.
E2D
plans to invest in approximately 20 companies, with an average ticket size of
around €25 million. The fund will focus on growth-stage businesses operating
across key domains including space, air, land, maritime, and subsurface
technologies, supporting both defence-focused and dual-use applications.
We
look forward to backing the best European high-growth, deep tech companies that
will be instrumental in closing defence capability gaps while also addressing
commercial markets, delivering decisive and persistent operational gains to
European armed forces as well as primes.
This will foster a more resilient and
sovereign European ecosystem and ultimately unlock superior value for
investors,
added Roland Manger, co-founder of Earlybird.
Beyond
capital, the partnership aims to provide portfolio companies with access to a
network of technology experts, operators, defence leaders, military procurement
channels, and major industry players. The fund is also supported by an
international strategic committee comprising military and industrial leaders
from NATO, armed forces, and leading European defence companies.
