New €500 million growth fund E2D targets European DefenceTech scaling gap
VC firms Earlybird and AVP launched E2D, a €500 million growth fund dedicated to dual-use and defence technology companies, aiming to provide European capital for scale-up and reduce reliance on US investors.
Earlybird and AVP today announced the launch of E2D, a €500 million European dual-use and DefenceTech growth fund. It is one of the most significant Franco-German investment collaborations in the European tech ecosystem. The fund targets around 20 companies with an average ticket size of approximately €25 million. Its first close will take place on June 30th.
E2D is designed to bridge the expansion gap for European DefenceTech companies transitioning from validated technologies into large-scale deployment. Previously, many such companies had to seek capital from US investors, leading to a drain of capital and talent. The fund aims to foster a more resilient and sovereign European ecosystem.
The launch comes amid a historic increase in European defence spending: France has committed €76 billion, Germany €152 billion, and the EU outlined an €800 billion defence plan. This creates a strong demand for domestic technology solutions.
E2D will invest across all critical domains: space, air, land, maritime, and subsurface. The fund’s international strategic committee will include military and industrial leaders from armed forces, NATO, and leading European primes. Recent activity in the sector includes large rounds like ICEYE’s €450 million Series F, alongside smaller financings for ATMOS Space Cargo, Kelluu, Sybilla Technologies, Uplift360, and SPREAD AI.
AVP brings its transatlantic platform and growth-stage expertise, while Earlybird contributes a long-standing track record in European deep tech. The partner team includes investors with over a decade of experience in dual-use and defence technology, well before most European funds could operate in this space due to sector restrictions.
