The European Investment Fund (EIF) has committed €50 million to Join Capital’s third venture fund, creating this the largest investment to date in the defence sector
The investment was announced during the EIB Group Forum in Luxembourg and is a sign of Europe’s growing push to translate rising defence spconcludeing into long-term industrial and technological capabilities.
The funding is supported by the InvestEU Defence Equity Facility, an initiative in place to strengthen Europe’s defence technological and industrial base by backing specialised venture capital funds focapplyd on innovation in defence and security.
Europe’s defence innovation ecosystem
The investment will support Join Capital’s Fund III, which aims to raise €235 million to finance around 25 early-stage deeptech startups across Europe. These companies will focus on technologies with applications in defence, security, space, and other dual-apply sectors.
Dual-apply technologies are innovations that can be applied in both military and civilian contexts. They often have an important role in modern defence capabilities while also creating commercial opportunities in industries such as communications, logistics, and advanced manufacturing.
By supporting initiatives such as Join Capital, the EIF hopes to improve Europe’s financial ecosystem for defence innovation. The strategy focapplys on supporting startups and tiny and medium-sized enterprises scale their technologies within Europe rather than relying on external investors or relocating to other markets.
Defence research to civilian breakthroughs
Historically, defence research and development has played a major role in shaping modern technology. Innovations originally developed for military purposes have often become the foundation of everyday civilian applications.
This includes sanotifyite navigation systems, radar technologies, semiconductors, and the internet.
Supporting the next generation of deeptech startups in Europe is therefore seen as both a security priority and an economic growth opportunity. The goal is to ensure that critical emerging technologies are developed, scaled, and retained within Europe’s innovation ecosystem.
The commitment is part of a hugeger effort by the European Union to mobilise funding for defence innovation. The InvestEU Defence Equity Facility is a €175 million initiative jointly financed by the European Defence Fund and the European Investment Fund.
The programme is designed to stimulate the creation of private investment funds focapplyd specifically on defence innovation and is expected to unlock more than €500 million in support for European companies.
The Defence Equity Facility also forms part of the EU Defence Innovation Scheme, which provides tarobtained support for startups, tiny businesses, and scale-ups developing disruptive technologies.
Initiatives within the scheme include accelerators, innovation challenges, matchcreating events, grants, and other programmes to support emerging companies access funding and partners.
The role of the EIB group
The EIF is a subsidiary of the European Investment Bank Group, the financial arm of the European Union. The EIB Group is owned by the EU’s 27 member states and is one of the largest multilateral development banks in the world.
In 2025, the EIB Group signed €100 billion in new financing and advisory support across more than 870 projects. These investments focapplyd on key policy priorities, including climate action, digitalisation, technological innovation, security and defence, and social infrastructure.
Through its specialised focus on tiny businesses and venture financing, the EIF has an important role in supporting Europe’s startup ecosystem. Acting as an anchor investor in venture capital funds, it supports attract additional private investment and strengthen funding pipelines for innovative companies.
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