BAE Systems commits €50m to European defence start-ups

BAE Systems is committing €50m to venture capital funds that back European defence-tech start-ups as it looks to accelerate the development of next-generation capabilities.

The Lancashire defence giant will invest €25m each into funds managed by Expeditions and Lakestar, which support founders developing innovations for Europe's defence and security sector.

The investment forms part of BAE Systems' recently launched Launchpad programme, which aims to help promising defence technologies move beyond the prototype stage and into wider commercial and operational use.

Dave Ewing, head of technology commercialisation at BAE Systems, said: “As a large defence company, we’ve always valued the capability and ingenuity that early-stage founders can bring to the table.

“These latest investments show that we’re serious about supporting them as they look to play their part in delivering the technologies of tomorrow.”

BAE says the ambition of Launchpad is to continue growing in line with the company’s business priorities, supporting new start-ups and accelerating new technology development.

Dave added: “Building on our long-standing investment in innovation, we recently set up Launchpad as a win-win, aiming to spin out some of our own defence technologies to commercial markets while also backing startups that can bring something new to defence. This latest step means we’re full steam ahead on making that a reality.”

Klaus Hommels, founder and chairman of Lakestar, said: “Europe is at a pivotal moment in redefining its security and technological sovereignty and supporting the next generation of defence-tech founders will be critical to that effort.

“BAE Systems’ investment is significant as it brings together capital, deep sector expertise and access to markets to accelerate the development and deployment of the capabilities Europe needs to remain secure in an increasingly complex world.”

Dr Mikolaj Firlej, co-founder and general partner of Expeditions, said: "European defence-tech can drive the most transformative shift for our continent in a generation and Expeditions has been investing with this conviction for years.

“Our security can no longer be assumed; it has to be built. Its architects will be the founders deploying innovative products at scale, in weeks and months rather than years, drawing on lessons from the frontline.

“We are grateful to partner with BAE Systems in this endeavour. Our combined force, equipped with greater resources, will invest with the discipline and urgency our security demands."