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20 May 25. EIF announces €40m investment in Keen Venture Partners’ European defence and security Tech fund under InvestEU
• EIF commitment is backed by the InvestEU programme, which aims to trigger more than €372bn overall in investment supporting EU policy priorities, until 2027
• This investment is the EIF’s first investment in a dedicated European defence fund
• The Fund targets early-stage companies across the EU, focusing on information superiority, cyber defence, space, autonomy and robotics among others
• This investment aligns with the EIB Group’s strategy to strengthen European security and defence amid geopolitical challenges
As Europe faces an unprecedented level of security threat, innovation in defence, security, and space technologies has become a strategic imperative. The EIB Group has stepped up its support to the security and defence industry in 2024, widening the scope of defence and security projects eligible for financing earlier this March.
The European Investment Fund (EIF) today announced a pioneering effort to enhance the availability of capital for defence-focused ventures in Europe, with a €40m investment in Keen’s European Defence and Security Tech Fund. The fund, with a focus on early-stage companies within the defence and security technology sector, aims to support companies that are pioneering solutions in areas such as information superiority, cyber defence, robotics, AI, autonomous systems and space technologies such as securing satellite communications, satellite image analysis, and defence of space assets. The Fund’s investments will be pan-European, with exposure to the United Kingdom, Turkey and Norway.
Executive Vice-President for Prosperity and Industrial Strategy Stephane Séjourné said: “Strengthening Europe’s defence technological and industrial base is about securing our strategic autonomy and protecting our citizens—on land, at sea, in the air, in cyberspace, and in space. It’s about ensuring that European companies can deliver the technologies we need. We are moving from declarations to delivery, with investments to match our ambition.”
Marjut Falkstedt, Chief Executive of the EIF, stated, “Our investment in the Keen European Defence and Security Tech Fund underscores our commitment to strengthening the European security landscape. By supporting innovative companies in this critical sector, we are not only fostering technological advancements but also enhancing Europe’s overall security and resilience.”
This investment is the first of its kind under the Defence Equity Facility and the InvestEU Space mandate and builds upon EIF’s previous investments in generalist venture capital funds with a partial focus on defence.
Alexander Ribbink, and Giuseppe Lacerenza Partners at Keen Venture Partners: ‘The team at Keen has a long commitment to and investments in defence and defence technology. The opportunity to add the power of tech entrepreneurs with the full support of venture capital to the European defence ecosystem is huge. A stronger and safer Europe needs the resourcefulness and grit that only entrepreneurs can bring. We are proud to be at the forefront of this trend, and to be strongly supported by the EIF’.
Background information
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of sustainability, innovation, research and development, entrepreneurship, growth and employment.
Keen Venture Partners is a radically human venture capital firm based in Amsterdam and London. Keen backs exceptional teams and fast-growing European tech companies from seed to Series B. Keen has built strong expertise in defence and deep tech, supported by an advisory board of European military leaders, industry veterans, and policymakers. The firm invests through a thesis-driven approach, formulating investment ideas based on fundamental trends in specific areas of technology. When getting to know founders, Keen shares its network of operators, experience, and capabilities even before investing. The portfolio consists of 30+ startups and scaleups across Europe. You can find more information at: www.keenventurepartners.com
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 bn. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 bn in additional investment.
19 May 25. EU and UK agree on defense deal, ‘second step’ needed to secure access to $169bn in funds. The “United Kingdom and the European Commission should swiftly explore any possibilities for mutually beneficial enhanced cooperation created by the SAFE instrument, once adopted, in accordance with their respective legal frameworks,” states a UK-EU “Common Understanding” document.
The European Union and United Kingdom have agreed to a defense and security trade agreement as part of a wider economic pact after years of politically contentious relations caused by Brexit.
Ursula von der Leyen, president of the European Commission, said during a EU-UK Summit press conference held in London today that the new defense “partnership” struck with Britain will “boost cooperation” and covers industry, “military mobility, peacekeeping, crisis management” as well as the “countering of hybrid threats.”
The military pact is a “first step” toward UK involvement in EU-related defense programs and initiatives, according to von der Leyen, but she said that a “second step” or additional negotiations will be required before UK industry can be eligible to compete for joint procurements, aligned to the €150bn ($169bn) Security Action for Europe (SAFE) project.
The “United Kingdom and the European Commission should swiftly explore any possibilities for mutually beneficial enhanced cooperation created by the SAFE instrument, once adopted, in accordance with their respective legal frameworks,” states a UK-EU “Common Understanding” document, also signed today.
The effort is part of the EU’s ReArm initiative, valued at up to €800 bn and drawn up to urgently increase defense spending and drive up industrial capacity across the continent. SAFE specifically lets member states take on loans in order to make new investments in major equipment programs.
SAFE “will increase our readiness, will close military gaps that we have, and will increase, what’s [of] most importance, our interoperability,” said Von der Leyen. “It will create new opportunities, of course, for our defense industries.
Britain’s decision to withdraw from the EU in 2020 restricted local suppliers from competing for defense contracts offered by the Union, and though Von der Leyen did not set a timeframe for a new round of negotiations to begin, the expected breakthrough sets up significant new opportunities for companies like BAE Systems, Babcock and Rolls Royce.
In a statement to media, Kevin Craven, CEO of the UK industry organization ADS Group, labelled the EU-UK defense pact “a welcome development, although somewhat underwhelming in the lack of detail.”
“While we are assured that this will pave the way for the UK defence industry to participate in the EU’s … (SAFE) defence fund, and therefore support thousands of UK jobs, we are reluctant to celebrate too early when the specifics of such a deal remain to be seen.”
Antonio Costa, president of the European Council, spoke of the whole host of agreements in more glowing terms, as he told reporters, they “mark not just progress, but a new chapter in the relationship between the United Kingdom and the European Union, the start of a renewed and strengthened strategic partnership.”
The accords “represent more than just words on paper,” he added. “They are a reflection of our shared commitments to security, to prosperity, to development and to the people we serve on both sides of the channel.”
In an interview with Breaking Defense, Air Force Chief of Staff Gen. David Allvin argues the Air Force is most apt for an Indo-Pacific fight relative to other services.
By Michael Marrow
Regarding defense, Costa said, “our new partnership will bring deeper cooperation. It will strengthen Europe’s contribution to NATO and it will sharpen our focus on common strategic priorities on trade.”
Together, he said the two parties will work to deliver a “just and lasting peace,” in Ukraine. In the interim, he shared that they will “intensify pressure on” Russian President Vladimir Putin, through additional sanctions.
UK Prime Minister Keir Starmer said the overall “landmark” trade deal, “gives us unprecedented access to the EU market, the best of any country outside of the EU or Africa, all while sticking to the red lines in our manifesto about not rejoining the single market, the customs union, and no return to freedom of movement.”
In an analysis piece published today, Ed Arnold, senior research fellow for European Security at the Royal United Services Institute, a British defense thinktank, questioned the “level of ambition” from the new EU-UK defense partnership and a lack of “tangible deliverables or milestones.” (Source: Breaking Defense.com)
19 May 25. Romania: Presidential election result will ensure continued EU, NATO alignment. On 18 May, the pro-EU and pro-NATO centrist Nicuşor Dan won Romania’s presidential election. Dan defeated the hard-right Alliance for the Union of Romanians (AUR) candidate George Simion with 53.8% of the vote. Despite trailing in the first round, Dan secured a decisive eight-point lead. Simion initially disputed the outcome, claiming victory and calling for nationwide protests over alleged electoral fraud. However, he later conceded defeat to Dan, reducing the prospect of any significant domestic unrest in direct response to the election result. Dan’s victory will be warmly welcomed in European capitals as the conclusion of a highly turbulent period in Romanian politics that saw a NATO-sceptical candidate win the first round of a presidential election that was annulled in 2024 due to alleged Russian interference. Dan will likely consult with the country’s pro-EU parties in search of a viable coalition to whom he can give a mandate to form a government. However, we assess that divisions among these parties mean that a snap election will possibly be called in the coming months. (Source: Sibylline)
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