Airbus Defence and Space has been announced as the anchor limited partner for E2D, a new €500 million dual-use and defence technology fund. Launched by leading European venture capital firms AVP and Earlybird, the fund is dedicated to strengthening the continent's technological sovereignty. This strategic collaboration represents a significant commitment to fostering innovation within Europe's critical defence and industrial sectors.
A Strategic Franco-German Collaboration
With its target size of €500 million, the E2D fund stands as one of the most substantial Franco-German investment collaborations in the European technology landscape. Its primary mission is to identify and back the next generation of European technology champions across multiple strategic domains. The fund will provide crucial growth-stage capital, aiming to accelerate the adoption of new technologies by armed forces and key industries.
E2D's investment strategy is focused on a portfolio of approximately 20 companies, with an average investment size of around €25 million per company. The fund will target businesses operating in the space, air, land, maritime, and subsurface sectors. It seeks to support companies with modern operating models and a clear mission focus, encompassing both defence-native and dual-use applications.
Bolstering European Sovereignty
The commitment from Airbus Defence and Space highlights a growing consensus among European industrial leaders on the importance of dual-use innovation. Michael Schoellhorn, CEO of Airbus Defence and Space, stated that European defence requires both scale and speed, necessitating an expanded ecosystem of technology partners. This investment is a strategic move to scale European deep-tech and ensure critical capital, talent, and intellectual property remain within the continent.
This partnership is viewed as a powerful endorsement of E2D's mission to address Europe's capability gaps. According to Benoit Fosseprez, General Partner at AVP, it signals that industrial leaders are prepared to support the growth-stage companies essential for continental security. The collaboration is designed to create a vital link between emerging innovators and established industrial primes, accelerating development and deployment.
Inaugural Investment Signals Clear Intent
In its first official act, the E2D fund has announced an investment in Alta Ares, a French-headquartered technology company. Alta Ares develops advanced AI-powered hardware and agnostic software for intelligence, surveillance, reconnaissance (ISR), and counter-unmanned aerial systems (UAS) missions. This initial investment underscores the fund's focus on agile, mission-oriented companies that are already delivering impactful solutions for European armed forces.
The strategic value of the Alta Ares investment is amplified by a recently signed Memorandum of Understanding with Airbus Defence and Space. This agreement will facilitate the co-development and integration of next-generation counter-drone solutions into Airbus's battle management suite. Roland Manger, Co-Founder of Earlybird, emphasized that fostering such synergies between portfolio companies and industrial operators is a core objective of the E2D fund.
The launch of the E2D fund, with Airbus Defence and Space as its anchor investor, marks a pivotal development for Europe's technology and defence ecosystem. This powerful alliance between venture capital and industry is poised to accelerate innovation and fortify the continent's strategic autonomy. By channeling significant capital into dynamic companies like Alta Ares, the initiative is set to build a more resilient and technologically advanced future for European defence.