“We are not at war, but we are no longer at peace either.” This statement was made by Mark Rutte, Secretary-General of NATO, in early 2025. Months later, the phrase resurfaced, this time from Germany’s Chancellor Friedrich Merz.
This happens after 4 years of full-scale war in Ukraine, Russian drones repeatedly entering NATO airspace, including incidents along the Baltic Sea and near Poland’s eastern border, GPS jamming across the Baltic and Nordic regions, and more.
This year marks a shift toward collective action, as Europe addresses the increasing threats. The defense investment across the EU has surged: in 2024, the 27 member states spent about €343 billion, or roughly 1.9 % of GDP, and this is projected to reach approximately 2.1 % in 2025. Moreover, the European Defense Fund has allocated nearly €7.3 billion for 2021-2027 for research and development of defense capabilities.
First close of the largest defense-tech VC fund in Europe
This week, Keen Venture Partners announced the successful first close of its European defense and security technology fund. The fund has secured over €150 million, making it the largest defense-tech venture capital fund in Europe. Keen is now fully operational and actively investing in startups and scale-ups developing defense and security technologies across European NATO member states, reported the fund.
Founded in 2016 by Giuseppe Lacerenza, Alexander Ribbink, and Ties Klinkhamer, Keen Venture Partners invests in early-stage European tech companies from its base in Amsterdam.
Keen typically invests €1–€8 million from seed to Series B, following a thesis-driven, hands-on approach centered on founder–market fit, defensibility, user-centric design, European scalability, and commercial ambition. Its portfolio includes more than 30 companies, among them Avalor AI (now Intelic AI) and Perciv AI, supported through a pan-European network of policymakers, military leaders, and industry partners.
Major institutional backing fuels first close
In May 2025, the European Investment Fund (EIF) committed €40 million to the VC’s new defense and security vehicle, forming the backbone of its first close, which now includes €40 million from Dutch pension fund PME alongside commitments from TNO (the Netherlands Organisation for Applied Scientific Research), ABN AMRO, and LIOF, the regional development agency for Limburg.
Keen’s new fund plans to invest €1–€10 million in over 25 companies, focusing on cybersecurity, autonomous systems, deterrence technologies, and space capabilities. The firm expects to collaborate closely with other VC funds.
“This milestone was made possible thanks to a unique mix of leading institutional investors and private capital, all aligned on one clear belief: Europe needs to build domestic defence and deep-tech capabilities, and now is the time to do it,” said Giuseppe Lacerenza, Partner at Keen Venture Partners.
Other VC funds, investing in European defense
A number of European venture-capital firms are now explicitly targeting defense, security and dual-use technologies, aiming at Europe’s strategic autonomy.
Within the CEE region, Rockaway Ventures recently closed its second fund at approximately €55 million, with a stated focus on transformative tech including “defense and dual-use technologies”.
Last year, Presto Ventures, in partnership with industrial-defense group Czechoslovak Group (CSG), launched the Presto Tech Horizons fund targeting €150 million to invest in startups developing dual-use solutions across NATO and allied countries.
