European Investment Fund Partners with Join Capital to Support Next Generation Defence and Space Technologies in Europe

European Investment Fund Partners with Join Capital to Support Next Generation Defence and Space Technologies in Europe

(IN BRIEF) The European Investment Fund has committed €50 million to Join Capital’s third venture capital fund, marking its largest investment to date in the defence sector and highlighting Europe’s efforts to strengthen its defence and technological capabilities. Supported by the InvestEU Defence Equity Facility co-funded by the European Commission, the investment is intended to mobilize additional private capital and support startups developing critical technologies in defence, security, space and other dual-use sectors. Join Capital’s Fund III aims to raise €235 million and will invest in approximately 25 early-stage deeptech companies across Europe working on innovations such as fibre-optic sensing for infrastructure monitoring, quantum-secure communications, advanced electronic payload systems and cybersecurity technologies. The investment reflects a broader European strategy to strengthen the defence industrial base and promote technological innovation while ensuring that critical capabilities are developed and scaled within Europe.

(PRESS RELEASE) LUXEMBOURG, 4-Mar-2026 — /EuropaWire/ — The European Investment Fund (EIF) has announced a €50 million commitment to Join Capital’s third investment fund, marking its largest investment to date in the defence sector and underscoring growing efforts to strengthen Europe’s technological and industrial capabilities in security-related industries. The announcement was made during the EIB Group Forum in Luxembourg and forms part of a broader push to translate increased defence spending into concrete industrial development across the European Union.

The investment is supported by the InvestEU Defence Equity Facility, a financial instrument co-funded by the European Commission that aims to reinforce Europe’s defence technological and industrial base. By investing in specialised venture capital funds, the initiative seeks to channel more private capital toward emerging companies developing critical technologies in areas such as defence, security, space and other dual-use applications.

Join Capital’s Fund III is targeting a total size of €235 million and plans to invest in around 25 early-stage startups across Europe. The fund focuses on deep technology ventures developing advanced capabilities with applications in both military and civilian sectors, commonly referred to as dual-use technologies.

The EIF’s €50 million commitment is expected to act as a catalyst for additional private investment, helping to accelerate the development of a stronger European ecosystem for defence innovation and advanced technological capabilities. As geopolitical tensions and security challenges continue to reshape Europe’s strategic landscape, policymakers and investors have increasingly emphasized the need to develop critical technologies within Europe.

Marjut Falkstedt, Chief Executive of the European Investment Fund, highlighted the strategic importance of investing in emerging technologies related to defence, security and space. She noted that the timing of the investment aligns with the growing importance placed on these sectors and expressed confidence that the commitment will attract further capital to support innovation and strengthen Europe’s technological sovereignty.

European Commissioner for Defence and Space Andrius Kubilius also emphasized the importance of technological innovation in strengthening Europe’s defence readiness. By supporting venture capital funds focused on defence-related technologies, the European Commission and the EIF aim to improve the financial ecosystem that enables defence-focused startups and small and medium-sized enterprises to grow and scale within Europe.

Join Capital, a Berlin-based venture capital firm, has already invested in several early-stage technology companies working on advanced capabilities relevant to both civilian and defence applications. These include Optics11 in the Netherlands, Quadsat in Denmark, Kreios Space in Spain, Quantum Optics Jena in Germany and 2D Photonics in Italy.

The companies supported by Join Capital span a range of technological fields including fibre-optic sensing systems for monitoring critical infrastructure, quantum-secure communication technologies, advanced electronic payload systems, and cybersecurity solutions. These technologies are considered strategically important as Europe seeks to enhance both security resilience and technological competitiveness.

Jan Borgstädt, Founding Partner at Join Capital, said the firm focuses on supporting entrepreneurs whose technologies can provide significant strategic advantages for both military and commercial customers. Investments in dual-use technologies, he explained, can deliver multiple benefits by strengthening defence capabilities while also contributing to economic growth and technological leadership.

Historically, innovations originating in defence research have had significant spillover effects across the civilian economy. Technologies such as satellite navigation, radar systems, semiconductors and the internet were initially developed through defence programmes before becoming foundational elements of modern economic and technological infrastructure.

Through Fund III, Join Capital aims to help ensure that the next generation of critical technologies is developed, scaled and retained within Europe. The fund’s focus on early-stage companies is intended to support innovative startups at the earliest stages of growth, helping them transform cutting-edge research into scalable technologies with both strategic and commercial value.

The EIF’s investment represents a broader effort by European institutions to strengthen technological sovereignty and support the development of strategic industries as Europe adapts to an evolving geopolitical and security environment.

SOURCE: European Investment Fund