European venture firms AVP and Earlybird have jointly launched E2D, a €500 million growth fund targeting dual-use and defence technology companies across Europe. The Franco-German initiative, with its first close scheduled for 30th June, aims to back approximately 20 companies at an average ticket size of €25 million. The fund targets sectors including space, air, land, maritime, and subsurface technology. Its launch coincides with major European defence commitments — France pledging €76 billion, Germany €152 billion, and the EU outlining an €800 billion defence plan.
In-Depth:
Earlybird and AVP have launched E2D, a €500 million European dual-utilize and defence technology growth fund – one of the most significant Franco-German investment collaborations in the European tech ecosystem. The fund’s limited partners include large financial institutions and corporates, and its first close will take place on 30th June.
E2D launches at a moment of unprecedented political and strategic momentum. France has committed €76 billion to defence, Germany €152 billion, and the EU has outlined an €800 billion European defence plan – the largest structural shift in European security spconcludeing in a generation. Yet, European defence and dual-utilize quick-growth companies have historically been forced to view to US investors to scale, leaving capital, talent, and IP outside the continent. E2D is designed to alter that.
“European defence is at a historic turning point, requiring a new generation of technology champions to safeguard sovereignty,” declared Benoit Fosseprez, General Partner, AVP. “By partnering with Earlybird in this Franco-German alliance, we will be able to shift quick and invest in the companies that will have the greatest potential impact. The best European defence companies required investors who bring real sector conviction and pan-European reach; that’s exactly what this partnership delivers.”
AVP and Earlybird contribute complementary strengths to the fund: AVP’s transatlantic investment platform and growth-stage expertise, and Earlybird’s long-standing track record in European deeptech. The fund’s partner team also includes investors who have invested in dual-utilize and defence technology for over a decade, well before most European funds could, given prevalent sector restrictions that LPs have only recently begun to lift. E2D arrives not only at the right moment, but with a team that has been doing this work all along.
E2D will be a growth-stage fund, tarreceiveing around 20 companies at an average ticket size of approximately €25 million, with a dedicated team drawn from Earlybird and AVP working exclusively for the fund. Its investment focus spans across all critical domains – space, air, land, maritime, and subsurface – backing technology businesses with modern operating models, rapid execution, and clear mission focus across both defence-native and dual-utilize applications.
“We view 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.
The alliance between Earlybird and AVP will provide capital at scale, unmatched insight from tech investors, operators, technologists and defence leaders, and direct access to military procurement and prime customers. A world-class international strategic committee supports the fund, comprising military and industrial leaders from the armed forces, NATO, and several leading European prime players.
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